Overview

• UK mobile payments firm's H1 gross profit rose 7.1% on growth in payments and messaging

• Adjusted EBITDA for H1 up 6.4%, adjusted EPS flat at 6.2p

• Company raised interim dividend to 3.1p, citing progressive dividend policy

Outlook

• Fonix expects continued positive momentum in UK, Ireland and international markets in H2 FY26

• Company targets launch in a fourth European market for early FY27

• Board expects any impact from UK gaming tax changes to be manageable and absorbed within growth

Result Drivers

• PRODUCT INNOVATION - Co said new products such as PayFlex, CompsPortal, and RichMessaging supported gross profit growth

• INTERNATIONAL EXPANSION - Gross profit growth driven by strong performance in Ireland and new services in Portugal, with further European market entries underway

• CUSTOMER FORMAT CHANGES - Growth supported by format changes among customers, larger prize funds, organic growth among existing customers, and higher entry price points

Company press release: ID:nRSQ8389Wa

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the it services & consulting peer group is "buy"

• Wall Street's median 12-month price target for Fonix PLC is GBp296.50, about 91.9% above its March 16 closing price of GBp154.50

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 17 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)