Fonix Regulatory News (FNX)

Fonix Mobile plc

("Fonix" or the "Company")

Full Year Trading Update

Strong earnings growth and expansion into international markets

Fonix Mobile plc, the mobile payments and messaging provider is pleased to provide an update on trading for the year ended 30 June 2021 (the "Year").

Financial highlights:

● Revenue and profit have continued to grow and remain comfortably in line with management's expectations since Fonix's admission to trading on the AIM in October 2020.

● Total Payment Volume ("TPV") of mobile payments grew by 10% to £233.4m (FY20: £211.7m).

● Gross profit in the period grew by 13% to £11.3m (FY20: £10.0m).

● Adjusted EBITDA1 in the period grew by 14% to £8.8m (FY20: £7.7m).

● Fonix continues to generate strong underlying cash flows and intends to pay a final dividend for the Year in November 2021, in line with policy.

Operating highlights:

● Fonix has continued to attract new customers in all sectors, with over 100 active customers by the Year end, an increase of 13% on the previous year.2

● Fonix continues to maintain 100% client retention, with over 99% of income of a repeating nature.

● Fonix established its first overseas operator connections in the Year with customer services now integrated and pending launch in Austria. The business is also in advanced discussions to launch services in one additional European territory in the coming months.

● Fonix continues to support key UK charities with fundraising from public donations, and the number of active charity clients has grown significantly in the year. The value of Fonix's offering is shown by Fonix SMS payments accounting for 81% of the number of public donations and 57% of the value of public donations made 'on-the-night' to Comic Relief in March 2021.

● Fonix's three business segments of payments, messaging and managed services have each grown in the Year, in line with expectations and the business retains a robust pipeline of prospects going into the next financial year.

The Board expects to report its audited final results for the year ending 30 June 2021 on Thursday 23 September 2021.3

Outlook:

With high levels of repeating revenue, a strong exit run-rate for FY21, new supplier connections in international markets and a growing pipeline of client prospects across all sectors, the Board continues to be confident in the growth potential for Fonix going into FY22 and beyond.

Rob Weisz, CEO, commented:

"We're hugely proud of our progress over the last year, managing the business through a global pandemic, all whilst making the transition to becoming a public company and continuing to achieve record levels of profitability.

All our business segments have grown strongly throughout the year and comfortably in line with expectations. The business has seen significant growth across the media, charity and gaming sectors, with those services not being materially impacted by the pandemic. The business continues to develop products and features which deliver growth and expansion in these areas.

In addition, we've laid some solid foundations for international expansion this year and we expect international markets to start making a significant contribution to growth in the coming years."

Notes:

All financials based on unaudited figures.

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

2 Active customers are those generating more than £500 in gross profit in the previous 12-months.

3 All financial numbers constrained within this announcement remain subject to audit.

Enquiries

Fonix Mobile plc Tel: +44 20 8114 7000

Robert Weisz, CEO

Michael Foulkes, CFO

finnCap Ltd (Nomad and Broker) Tel: +44 20 7220 0500

Jonny Franklin-Adams / Seamus Fricker (Corporate Finance)

Alice Lane / Sunila de Silva (ECM)

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, BT, Global Media, Comic Relief and Children in Need to name a few.