Fonix Regulatory News (FNX)

Fonix Mobile plc

("Fonix" or the "Company")

Trading Update

Strong gross profit and earnings growth, ahead of management expectations

Fonix Mobile plc, the mobile payments and messaging provider, is pleased to provide an update on trading for the 6 months ended 31 December 2023 (the "Period").

Financial highlights:

? Gross profit and adjusted EBITDA in H1 FY24 have grown ahead of management's expectations. As a result, the Board now expects adjusted EBITDA for the full year ending 30 June 2024 to be marginally ahead of management expectations.1

? Gross profit in the Period grew by 17.9% to £9.2m (H1 FY23: £7.8m).

? Adjusted EBITDA1 in the Period grew by 17.7% to £7.3m (H1 FY23: £6.2m).

? Fonix continues to generate strong underlying cash flows and intends to pay an increased interim dividend in March 2024, in line with the Company's progressive dividend policy to pay out at least 75% of adjusted earnings per share.

Operating highlights:

? Total payment volume ("TPV") of mobile payments in the Period grew by 15.3% to £158m (H1 FY23: £137m), with a record month of commercial trading in both the UK and overseas in December.

? 100% platform uptime throughout the Period whilst supporting record levels of transactions and consumer engagement.

? New Subscription Manager product has now been released in preparation for major charity events in 2024.

? Significant gross profit growth in the Republic of Ireland, where the business has further strengthened its relationship with key clients and mobile network operators by taking a central role in coordinating discussions between stakeholders on the proposed new Gambling Regulation Bill. This may govern some interactive services operated by Fonix's clients.

? Fonix's key business segments of payments and messaging have both grown in the Period and the business retains a growing pipeline of client prospects going into H2 FY24.2

Outlook:

With high levels of repeating income, continued growth from existing clients and increasing opportunities for expansion in international markets, the Board remains confident in the growth potential for Fonix going into H2 FY24 and beyond.

Rob Weisz, CEO, commented:

"We are delighted to have once again delivered on our strategic goals, with our key commercial segments achieving solid year-on-year growth in income and profitability. In the first half of the year we have benefited from a 'true up' in trading following HM The Queen's death in the prior year, but the underlying growth rate remains strong in both the UK and Ireland.

The business continues to make good progress on further international expansion and we hope to make announcements relating to this later in the year."

Notes:

All financials based on unaudited figures.

1 Adjusted EBITDA excludes share-based payment charges along with depreciation, amortisation, interest, and tax from the measure of profit.

2 All financial numbers contained within this announcement are unaudited.

Enquiries

Fonix Mobile plc Tel: +44 20 8114 7000

Robert Weisz, CEO

Michael Foulkes, CFO

Cavendish Capital Markets Limited (Nomad and Broker) Tel: +44 20 7220 0500

Jonny Franklin-Adams / Seamus Fricker (Corporate Finance)

Sunila de Silva/ Harriet Ward (ECM)

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU No. 596/2014) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

About Fonix

Founded in 2006, Fonix provides mobile payments and messaging services for clients across media, telecoms, entertainment, enterprise and commerce.

When consumers make payments, they are charged to their mobile phone bill. This service can be used for ticketing, content, cash deposits and donations. Fonix's service works by charging digital payments to the mobile phone bill, either via carrier billing or SMS billing. Fonix also offers messaging solutions.

Based in London, Fonix is a fast growth business driven by blue chip clients such as ITV, Bauer Media, RTÉ, Global Media, Comic Relief and Children in Need to name a few.