25th Jan 2022 14:47
(Alliance News) - Fonix Mobile PLC said on Tuesday that profit and earnings for its first half will come in ahead of expectations, improving its outlook for the full year.
In the first half ended December 31, the London-based mobile payment and messaging platform said gross profit and earnings before interest, tax, depreciation and amortisation have grown ahead of management expectations.
Fonix shares rose by 7.0% to 156.71 pence each in London on Tuesday afternoon.
Gross profit grew year-on-year by 20% to GBP7.0 million from GBP5.8 million. Adjusted Ebitda also grew by 20% to GBP5.5 million from GBP4.6 million in the first half of financial 2022. Fonix now predicts adjusted Ebitda for the whole year will also exceed expectations.
Following the good news, it will pay an increased interim dividend in March, keeping its policy of paying out 75% of adjusted earnings per share.
The payment company has remained the lead provider for charity telethons, such as BBC Children in Need, Comic Relief and ITV's Soccer Aid.
The total payment volume of mobile payments grew by 12% to GBP138 million from GBP123 million in financial 2021. It boosted new customers by 10%, totalling 116 at the end of the period, up from 105 in financial 2021.
Looking ahead to its second half, Fonix said it "retains a growing pipeline of significant prospects" with expanding international reach following its partnership with Ventro Media Group, as well as high levels of repeating revenue and client retention.
By Elizabeth Winter; [email protected]
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