Fonix flags strong first-half performance
By Josh White
Date: Thursday 23 Jan 2025
(Sharecast News) - Mobile payments and messaging provider Fonix announced a strong first-half performance in a trading update on Thursday, with gross profit and adjusted EBITDA growing in line with expectations.
The AIM-traded company declared a special dividend of 3p per share, on the back of a robust financial performance and strong cash generation.
It highlighted a number of key achievements during the period, having secured contracts with all major mobile network operators in Portugal, including a strategic partnership with leading telecommunications provider NOS, strengthening Fonix's international reach.
The firm also launched new products such as PayFlex, a tool that streamlines the recovery of failed mobile payments, and DonationPortal, a tailored solution for charities.
Fonix said the new offerings were expected to unlock new revenue opportunities and enhance customer value.
The company added that it was actively pursuing growth opportunities in new European markets.
Its management team said it believed the international ventures had the potential to drive significant growth in the years ahead.
Despite a decline in total payment volume due to factors such as reduced charity campaigns and the exit of some gambling customers from the UK market, Fonix said it was still confident in meeting full-year expectations.
"We are delighted to have once again delivered strong progress on our growth strategy," said chief executive officer Rob Weisz.
"In Portugal, we have now secured contracts with all mobile network operators and a strategic partnership with a leading telecommunications provider, unlocking immediate opportunities to deliver Campaign Manager and our other interactive services to their significant base of TV and radio customers.
"At the same time, we continue to make good progress on exploring new opportunities in other European markets and advancing innovations on our product roadmap, which we expect to drive revenue growth from FY26 onwards."
At 1354 GMT, shares in Fonix were up 4.14% at 214.52p.
Reporting by Josh White for Sharecast.com.
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