**Summary of Fonix PLC Interim Results for H1 FY26 (6 months ended 31 December 2025)**
**Financial Highlights**
**Gross Profit** Increased by 7.1% to £10.5 million (H1 FY25: £9.8 million).
**Adjusted EBITDA** Rose by 6.4% to £8.3 million (H1 FY25: £7.8 million).
**Interim Dividend** Increased to 3.10p per share (H1 FY25: 2.90p), in line with the progressive dividend policy.
**Adjusted PBT** Grew by 2.6% to £8.0 million (H1 FY25: £7.8 million).
**Adjusted EPS** Remained stable at 6.2p (H1 FY25: 6.2p).
**Underlying Cash** Decreased by 16.4% to £9.2 million (H1 FY25: £11.0 million), primarily due to increased shareholder distributions.
**Operational Highlights**
1. **International Expansion**
Successfully launched services in **Portugal** with a leading national broadcaster, showing early traction.
Pilot of interactive services in a **third European market** is underway.
Commenced expansion into a **fourth European market**, targeting service launch in FY27.
2. **Product Progress**
**Campaign Manager** Enhanced with infrastructure upgrades for scalability and international support.
**PayFlex** Expanded to Ireland and two UK broadcasters, with plans for broader rollout.
**CompsPortal** First customer launch in December 2025, with encouraging user engagement.
**RichMessaging** Successful RCS messaging pilots with UK broadcasters, leading to expanded trials.
3. **Partnerships**
Extended contract with **ITV** for live broadcast interactivity services, now in its tenth year.
Maintained high client retention (>99% recurring income).
4. **Platform Performance**
Achieved 100% platform uptime throughout the period.
All key service lines (mobile payments, messaging, managed services) grew during the period.
**Outlook**
Continued momentum in core UK and Ireland markets, with encouraging international progress.
Strong pipeline of enterprise opportunities and focus on product innovation (PayFlex, CompsPortal, RichMessaging).
Board remains confident in delivering sustainable gross profit growth and long-term shareholder value, despite UK tax changes affecting certain gaming operators (which represent <6% of gross profit).
**CEO’s Commentary (Rob Weisz)**
Highlighted strong H1 performance driven by product innovation, international expansion, and long-standing partnerships.
Emphasized resilience in the business model, with high recurring income and structural barriers to entry.
Acknowledged the potential impact of AI technologies and Fonix’s proactive integration of AI into its operations.
**Key Financial Metrics**
**Revenue** Grew by 9% to £42.3 million (H1 FY25: £38.8 million).
**Gross Profit Margins** Slightly decreased to 24.9% (H1 FY25: 25.2%) due to revenue mix changes.
**Total Payment Volumes (TPV)** Increased by 6.7% to £160 million (H1 FY25: £150 million).
**Strategic Growth Pillars**
1. **Technological Innovation** Focus on PayFlex, CompsPortal, and RichMessaging to drive revenue growth.
2. **International Expansion** Client-led expansion into Portugal, third, and fourth European markets.
3. **Sustainable Profitability** Commitment to long-term profitability and shareholder value creation.
**Conclusion**
Fonix PLC delivered a robust H1 FY26 performance, underpinned by strong financial results, strategic international expansion, and product innovation. The company remains well-positioned for sustainable growth, with a resilient business model and a clear focus on long-term value creation.