Fonix (FNX) H1 2025 earnings summary

Executive summary

• Gross profit rose 6–6.5% to £9.8m for H1 FY25, driven by growth in payments, messaging, and managed services.

• Adjusted EBITDA increased 6.8% to £7.8m, with disciplined cost control and strategic investments in product and international expansion.

• Revenue declined 2% to £38.8m, mainly due to reduced voice telephony services and customer pricing optimization.

• International expansion advanced with contracts secured with all major Portuguese mobile operators and a strategic partnership with NOS.

• Product innovation continued with the launch of PayFlex and DonationPortal, targeting new revenue streams and enhanced client engagement.

Financial highlights

• Adjusted PBT up 5.4% to £7.8m; adjusted EPS up 8.8% to 6.2p year-over-year.

• Gross profit margin improved to 25.2% from 23.2% year-over-year.

• Total Payment Value (TPV) declined 5–5.1% to £150m, mainly due to fewer charity campaigns and exit of some gaming customers.

• Interim dividend per share of 2.9p declared, plus 3.0p special dividend paid in February 2025.

• Underlying cash at period end was £11.0m, down 1.8% from £11.2m, mainly due to advanced tax payments in Ireland.

Outlook and guidance

• Strong recurring revenue base and new client wins position for a robust H2 FY25, with expectations of a stronger second half.

• Imminent launch of interactive services in Portugal and a robust pipeline across all sectors.

• Board confident in meeting FY25 market expectations, supported by product launches and international growth.

• Long-term growth opportunities seen in European markets, leveraging technology and financial strength.