Fonix Mobile plc

("Fonix" or the "Company")

Full Year Trading Update

Strong momentum continues with new revenues in the Republic of Ireland

Fonix Mobile plc, the mobile payments and messaging provider, is pleased to provide an update on trading for the year ended 30 June 2022 (the "Year").

Financial highlights:

●    Revenue and profit have continued to grow and remain comfortably in line with management's expectations.

●    Gross profit in the Year grew by 16.5% to £13.2m (FY21: £11.3m).

●    Adjusted EBITDA¹ in the Year grew by 16.3% to £10.3m (FY21: £8.8m).

●    Fonix continues to generate strong underlying cash flows and intends to pay a final dividend in November 2022.

Operating highlights:

●   Total Payment Volumes ("TPV") of mobile payments in the Year grew by 11% to £258.6m (FY21: £233.4m), including a record £35.0m TPV processed in a single month

●    Fonix has continued to attract new customers in all sectors, with 123 active customers by the Year end, a net increase of 11% on the previous year (FY21: 111).²

●    Fonix launched interactive services with a significant media broadcaster in the Republic of Ireland in the final few weeks of the Year. In doing so, Fonix has contracted directly with all major mobile operators in Ireland and has a number of clients planned to go live in FY23.

●    Fonix's three business segments of payments, messaging and managed services have each grown by at least 14% 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 2022 on Thursday 22 September 2022.³

Outlook:

With high levels of repeating revenue, a strong exit run-rate for FY22, particularly in newly established international markets and a growing pipeline of client prospects across all sectors and markets, the Board continues to be confident in the growth potential for Fonix going into FY23 and beyond.

Rob Weisz, CEO, commented:

"We're hugely proud of our progress over the last year, successfully launching services in new territories and continuing to achieve record levels of profitability. We're particularly delighted with the progress made in the Republic of Ireland to date and whilst a relatively small market, it provides us with an exciting blueprint for establishing a solid international strategy to expand into other new markets.

Our key business segments have each grown strongly throughout the year and we have continued to optimise margins further, focusing on growth in more profitable product offerings."

Notes:

All financials are 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.