Fonix Mobile plc

("Fonix" or the "Company")

Full Year Trading Update

Strong trading momentum continues with significant growth in 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 2023 (the "Year").

Financial highlights:

●    Revenue and profit have continued to grow and ended the Year marginally ahead of market expectations.

●    Gross profit in the Year grew by 14.4% to £15.1m (FY22: £13.2m).

●    Adjusted EBITDA¹ in the Year grew by 12.6% to £11.6m (FY22: £10.3m).

●    Fonix continues to generate strong underlying cash flows and intends to pay an increased final dividend in November 2023, 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 was £268.1m (FY22: £258.6m) in the Year, as the increase in payments from commercial clients was offset by a 30% decline in charity related TPV due to fewer and smaller campaigns.

●    Fonix's commercial business segments of payments and messaging have each grown by at least 16% in the Year, in line with expectations and the business retains a robust pipeline of prospects going into the next financial year.

●    Fonix continues to maintain 100% retention of all significant customers.²

●    Engagement with a record 19m consumers in the Year, including payment transactions with 16% of the adult population in the Republic of Ireland within the first year of trading in the region.³

●    Launch into Republic of Ireland - a third tier 1 media client has recently launched services with Fonix in the Republic of Ireland, on a multi-year contract, making Fonix a leading provider of Interactive Services in the region.

The Board expects to report its audited final results for the year ending 30 June 2023 on Thursday 21 September 2023.⁴

Outlook:

With high levels of repeating revenue, a strong run-rate entering the new financial year, recent tier 1 wins in the UK and Ireland as well as 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 FY24 and beyond.

Rob Weisz, CEO, commented:

"We are delighted to announce another year of strong profitable growth. We started the financial year with an ambition to be a market leader in a second territory within two years of launch and have achieved that feat in the first year. In recent months, we have announced significant new contract wins in both the UK and Ireland, underpinning our growth expectations for the year ahead and furthering our aspiration to be the world's leading provider of interactive services.

As well as clear growth opportunities in our existing markets, we now also have a proven template for success in international markets, which we will look to replicate and announce as and when other new territories are making a meaningful contribution to our growth."

Notes:

All financials are 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 Significant customers are those contributing to more than one (1) percent of the company's gross profit in the Year or the 12 months previous.

³ Engagement means a payment transaction received from or SMS message delivered to an end consumer. The proportion of the adult population transacting with the company is calculated as the number of payment transactions with unique mobile numbers in the Republic of Ireland (ROI) compared to the number of people aged 18 or over in the ROI as per www.worldpopulationreview.com.

⁴ All financial numbers contained 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)

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