Fonix (FNX) H2 2024 TU earnings summary

Executive summary

• Achieved robust profitable growth across core markets and segments, with new income streams from recent client wins and expanded product offerings.

• Expanded commercial offering includes live broadcast voting and online payment portals, enhancing market credibility and competitive edge.

Financial highlights

• Gross profit grew 18.5% year-over-year to £17.9m (FY23: £15.1m).

• Adjusted EBITDA increased 18.1% year-over-year to £13.7m (FY23: £11.6m).

• Strong underlying cash flows support an increased final dividend in November 2024, with a payout of at least 75% of adjusted EPS.

• Board reviewing options for further return of surplus cash to shareholders after April 2024 share buy-back.

Outlook and guidance

• Confident in growth potential for FY25 and beyond, supported by recurring revenue, expanded offerings, and international expansion opportunities.

• Plans to enter a new mainland European territory in FY25, with broadcaster trials lined up.

• Audited final results for FY24 expected to be reported on 24 September 2024.