Trading Update

Fonix Mobile plc

("Fonix" or the "Company")

Trading Update

Fonix Mobile plc is pleased to provide a trading update for the 6 months period to 31 December 2020.

Financial highlights:

●    Revenue and profit have continued to grow comfortably in line with management's expectations since its admission to trading on AIM on 12 October 2020.

●    Total Payment Volume ("TPV") of mobile payments for the period was £123m, representing an increase of 18% on the comparative period last year.

●    Gross profit for the first 6 months was £5.8m, representing an increase of 21% on the comparative period last year.

●    Fonix continues to generate strong underlying cash flows and expects to pay its maiden interim dividend in March 2021.

Operating highlights:

●     Fonix's three business segments of payments, messaging and managed services have each grown during the period, in line with expectations.

●     Fonix has continued to attract new customers during the period across the media, charity, gaming and digital services sectors and retains a robust pipeline of prospects going into the second half.

●     A highlight of the period was the successful BBC Children in Need campaign in November which raised £13.9m in donations using our platform. The event was also the first in the UK where a £40 single donation was permitted by the mobile network operators.

The Board expects to report its interim results for the period ending 31 December 2020 on Monday 22 February 2021.

*All financials based on unaudited numbers.

Rob Weisz, CEO, commented:

"We are delighted this has been a positive trading period for the business, despite the distractions of an IPO. We have significantly grown existing client revenues as well as continued to deliver on some of our growing pipeline of opportunities.

Operating costs have remained at previous levels, and our successful handling of record customer activity in the period is a testament to the scalability and strength of our platform.

While we continue to monitor the evolving situation with COVID-19 closely, we have now demonstrated a clear ability for the business to run remotely from a technical, operational and administrative standpoint. We are trading comfortably in line with our expectations and as such, remain confident for the future success and growth of Fonix."

Enquiries

About Fonix

Founded in 2006, Fonix provides mobile payments and messaging services for clients across media, telecoms, entertainment, enterprise and commerce.

When consumers make payments, they are charged to their mobile phone bill. This service can be used for ticketing, content, cash deposits and donations. Fonix's service works by charging digital payments to the mobile phone bill, either via Carrier Billing or SMS Billing. Fonix also offers messaging solutions.

Based in London, Fonix is a fast growth business driven by blue chip clients such as ITV, Bauer Media, BT, Global Radio, Comic Relief and Children in Need to name a few.