Fonix raises interim payout as profit rises; hails Portugal in outlook

Fonix PLC on Tuesday said it is doing well across its core UK and Ireland markets as ‘Portugal continues to develop well’, amid an increase in interim profit and revenue.

The London-based mobile payments and messaging services provider said pretax profit rose 1.8% to £8.0 million in the six months to December 31, from £7.9 million a year ago.

Adjusted earnings before interest, tax, depreciation and amortisation were up 6.4% at £8.3 million compared to £7.8 million.

Revenue climbed 9.2% to £42.3 million from £38.8 million.

The firm said: ‘Growth in the mobile messaging business line reflects increased demand from enterprise messaging customers leveraging the group’s robust and reliable UK mobile network operator connections to deliver high-volume communications to UK consumers on behalf of their own corporate clients. In addition, demand from media customers increased during the period, driven by higher campaign volumes and continued adoption of messaging as a core engagement channel.’

Cost of sales increased 9.7% to £31.8 million from £29.0 million.

Fonix announced an interim dividend of 3.1 pence per share, up 6.9% from 2.9p a year ago.

Looking ahead, the company said it enteres the second financial half with continued positive moment across its core UK and Ireland markets amid ‘encouraging’ progress internationally.

It added: ‘Portugal continues to develop well, with engagement progressing with additional broadcasters. The pilot in a third overseas European market is underway, while foundational work in a fourth territory is advancing, with operator engagement and regulatory processes progressing and launch targeted for early financial year 2027.’

Fonix shares rose 2.3% to 158.00 pence each on Tuesday afternoon in London.

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