Fonix Share Discussion Threads

[rivaldo] 11/2/2022 11:53

FNX have a new major shareholder - Charles Stanley have been buying and are now above 5%, with 5.23m shares:

[igoe104] 31/1/2022 08:34

Good to hear that the fight between Tyson Fury and Dhillion Whyte is on BT box office, should generate alot of transactions for FNX....

[rivaldo] 26/1/2022 08:28

Good to see Investors Champion are very keen in their AIM market update this morning:



"Fonix Mobile: upgrades

Mobile payments and messaging provider Fonix Mobile (AIM:FNX), which we covered previously in our premium report here: ‘Fast-growing arrival on AIM from 2020 is still looking good’ issued a positive update bringing an upgrade from its broker.

Gross profit and adjusted EBITDA for the 6 months to 31 December have grown ahead of management's expectations with gross profit up 20% to £7.0m with adjusted EBITDA similarly higher at £5.5m.

This business has a very attractive cash flow model, as our note highlights, and with continuing strong cash generation, Fonix now intends to pay an increased interim dividend in March 2022.

Total payment volume of mobile payments grew by 12% to £138m with 116 (H1 FY21: 105) active customers at the period end.

Fonix remains the leading provider of charity telethons, including ITV's Soccer Aid, BBC Children in Need, Comic Relief and The Ruth Strauss Foundation, and has added several new clients in the period.

In response to the latest update the Group’s house broker upgraded their June 2022 and June 2023 adjusted EBITDA by +5% to £10.1m and £11.1m – given recent performance those still far too low to us. Their target price has been upgraded to 230p from 200p, well above the current 160p share price.

We aren’t big fans of the fairy tale ‘adjusted EBITDA’ measure and prefer to focus on free cash flow. In the case of Fonix this is even more compelling with the forecast free cash flow yield for 2022 a highly attractive 4.6%.

Its resilient business model should appeal to investors worried about current events."

[apad] 25/1/2022 12:41

Nice point, Asagi. I hadn't spotted that as a possible explanation.

Lord protect me from encouraging announcements 😊

apad

[asagi] 25/1/2022 12:33

Interestingly the job advert is for a Ruby on the Rails (open-source website development software) programmer.

might this be for customer 'dashboard' offering i.e. see your campaign/charity donations as they come into Fonix etc rather than the core technology.

The lack of long-promised international sales has also given me pause but today's announcement is very encouraging indeed and I am surprised that the shares are not higher.

Asagi (long FNX)

[apad] 25/1/2022 11:22

It's finnCaps revenue growth estimates that concern me. The overall tenor of the report is good as befits a good little business. I don't see the sort of growth that befits a business in a seemingly burgeoning market (at least internationally in countries where the credit card does not dominate).

Interestingly the job advert is for a Ruby on the Rails (open-source website development software) programmer. I was a touch surprised - made me realise that I don't know enough about how Fonix' system works. Anyroadup, doesn't look at all like they are embarking on a big software spend. 😊

I want to see the 'going abroad on the back of our existing customers' argument delivering 20%+ revenue growth.

apad

[rivaldo] 25/1/2022 10:57

Indeed - and Finncap say those upgrades are "conservative". Certainly FNX are rather undervalued against their peers given the relatively low P/E and the very high dividend yield of around 4%.

I like FNX's extremely understated methods. They seem to like to underpromise and then overdeliver, even though they have a number of avenues for growth.

Finncap conclude:

"Fonix’s robust investment case –

As we explain in more depth in our 23 September report, Fonix is focused upon leveraging its highly scalable, cloud-based platform to expand with existing
clients and win new clients as mobile commerce and mobile payments continue to scale. The structural strength of its platform is demonstrated by it experiencing no churn from major customers in six years, and it is diligently expanding its market-leading technology outside of the UK when it is led by its existing clients.

The successful execution of its strategy has driven Total Payment Volume (TPV) to £233m in FY21 from £125m in FY18, adjusted EBITDA to £8.8m in FY21 from £3.3m in FY18, and underlying EFCF to £7.3m in FY21, as management explained in more depth at the FY21 results. We conservatively forecast adjusted EBITDA growth of +15% and +10% in FY22 and FY23, and we expect that any upside to our forecasts will be returned to shareholders through Fonix’s dividend payout ratio of 75% of adjusted EPS."

[dixies] 25/1/2022 10:24

It's Finncap who have upgraded to 230p from 200. also upgraded eps to 7.9 from 7.6 and 8.8 next year. Divs 6 then 6.6

[apad] 25/1/2022 09:59

I'm not so convinced. It's a scalable platform but the revenue increase is poor. Decent business and some good financial metrics.
The apps solution seems to have the decision makers in thrall. My daughter has half a dozen apps on her phone including a car parking app. She doesn't think twice about it and the council doesn't seem to mind the cost.
The finnCap report does not anticipate strong revenue growth in the next couple of years.
They have one vacancy for a software developer.

rns: "The business continues to make good progress on the launch of international services and hopes to announce significant developments later in the year."
This has been tantalising for a long time now.

I have FNX as a hold until there is some revenue growth news.

apad

[rivaldo] 25/1/2022 08:51

I gather there's been a broker upgrade today to a 230p target price.....

Pateince keenwil, we're only 50 minutes in and are already 9.5p up :o)) Plenty still to come.

[kennewil] 25/1/2022 08:30

Was hoping for a bit more of a bounce from yesterday, given this TU. Ha Ho

[rivaldo] 25/1/2022 08:18

Yep :o))

It's only halfway through the year, yet FNX are already able to say that trading for the year to 30th June will be "comfortably ahead" of expectations. That's pretty bullish stuff.

In particular, the number of customers is up 10%. All segments of the business are growing.

And to conclude:

"Outlook:

With high levels of repeating revenue and client retention, expanding international reach, and a growing pipeline of client prospects across all sectors, the Board continues to be confident in the growth potential for Fonix going into H2 FY22 and beyond."

[hastings] 25/1/2022 07:25

TU out and happy with the content, continuing in the right direction.

[rivaldo] 17/1/2022 16:16

It's the number of users and usage that's increasing at pace - and I'd have thought limits will be increased further over time.

[nobilis] 17/1/2022 14:05

Hardly true

There is a max limit of £40 says the regulator.

[rivaldo] 17/1/2022 14:00

Nice 100,000 share buy at 162p just reported.

New blog post - a couple of extracts:



"Could 2022 be our most exciting year yet?
Hannah Giles
Jan 11

Pay now, pay later, pay in installments, pay by mobile. Today, it’s never been quicker and simpler for consumers to spend money. The payments industry is being shaped by the demand for choice, value and flexibility. People have embraced, and now expect, payment methods that deliver great value, function instantly and make their lives easier.

Digital wallets have revolutionised the financial services industry by providing instant and convenient payment to consumers, enabling everyone, banked or unbanked to use these services. According to Juniper Research, there were 2.6 billion unique digital wallet users globally in 2020, which will increase to 4.4 billion by 2025. With consumer trends moving towards totally electronic wallets, the digitisation of payment methods is now part and parcel of keeping up with consumer demand....

....The appeal to pay by carrier billing is rooted in a consumer desire for convenience and frictionless experience; whether it’s buying a ticket, watching live sport or donating to their favourite charity, consumers want things immediately sorted.

We’re extremely excited to see the next phase of digital payments as alternative payment methods become the norm — watch this space!"

[dicktrade] 22/12/2021 12:26

Tried some dummy trades.
Could buy a few just below 172 but could only sell 500 @ 167.05 .

[dicktrade] 22/12/2021 12:09

I have held here for some time and was looking at the chart thinking of a top up because it looks very strong, and this happens , dont know whether to laugh or cry.
Golden Cross if you look for that .

Richard

[rivaldo] 22/12/2021 11:51

Hello.......

[red ninja] 21/12/2021 14:18

From Fonix linked infeed :-

"We’re proud to have supported DEC’s Afghanistan Crisis Appeal via mobile donations. They have raised an incredible £17.5m in 5 days!

We are always delighted to support this ‘collective effort to provide the people of Afghanistan with emergency food, nutritional support for children and winter kits to help them stay warm.’ This crisis is far from over and any donations to this extremely important cause would mean so much to everyone involved.

For more information:"

[rivaldo] 10/12/2021 13:29

Interesting blog post from 3 days ago showing how FNX have developed their Children In Need campaigns over recent years:



Extract:

"This was the eighth consecutive year that Fonix has powered the mobile donations for BBC Children in Need and much has changed since that first campaign back in 2014. The charity now offers a total of five donation price points (£5, £10, £20, £30 and £40) which has been instrumental in increasing the total money raised, offering a true alternative to card payments. In addition to this, the introduction of delayed donation prize draws powered by Fonix’s Campaign Manager platform, has meant shows and Appeals can use different content formats to engage the public. For example, this year’s Appeal show offered viewers the chance to enter three prize draws to be in with a chance to win some spectacular prizes, including a vintage Jaguar car, a campervan and tickets to the Abba Voyage concert, all to help raise money to change young lives across the UK.

There were a number of epic fundraisers prior to the telethon that were promoted across TV, radio and online which raised a tremendous £6.8 million via text-to-donate. This was a record-breaking amount from pre-show campaigns and included BBC weatherman Owain Wyn Evans’ 24 hour drumathon — which raised a remarkable £3.7 million via text and online mechanics!"

[red ninja] 03/12/2021 15:30

From Fonix linked in feed :-

Fonix is excited to join The International Parking Community (IPC) as an IPC Corporate Member Plus. We're looking forward to showcasing mobile operating billing as an opportunity to develop payment solutions for parking. Ideally suited to the ticketing model for cashless and touchless purchases, mobile operator billing is a simple innovation that centralises the billing system and the user journey to one device, allowing a motorist to pay for a parking session via their mobile phone bill.

[rivaldo] 23/11/2021 15:31

News/blog item from FNX:



"Top 5 takeaways from the SportsPro OTT Summit 2021
Nov 22

The SportsPro OTT Summit 2021 was hosted at the impressive Tottenham Hotspur Stadium in London last week and was the place to be for the biggest players and innovators in the world of OTT. Experts from the biggest Sports & eSports Streaming companies were in attendance, with the likes of BT Sport, DAZN, World Rugby and Eleven Sports presenting different topics, challenges and future trends of the industry.

Fonix had two of our team at the stadium to experience this first hand; Commercial Director Anthony Baladi and Commercial Manager David Foord, who have compiled their top 5 takeaways for you below:

etc"

[red ninja] 20/11/2021 12:12

Investors Champion (free to read content) 19/11/2021



Fonix: good value
Fonix (AIM:FNX), the mobile payments and messaging provider, confirmed it had made had a positive start to the financial year, in line with management expectations, with highlights including new partnership agreements signed with Venntro Media Group and a global payments platform provider. The partnership with Venntro will see the roll-out of carrier billing into Venntro's 2,500+ white labelled dating sites.

You can read our earlier premium coverage here: ‘Fast-growing arrival on AIM from 2020 is still looking good.’

In September, Fonix mobile payments made a significant contribution to the £13m in charitable donations raised for ITV's Soccer Aid. This followed £0.5m in mobile donations raised for The Ruth Strauss Foundation in August. Fonix will also be powering donations for BBC Children In Need for the eighth consecutive year.

This is a lovely little business delivering growing profits and plenty of cash, supporting a nice 3.5% dividend yield. Trading at c20x forecast earnings for the year ending June 2022 (growth 10%), and delivering 150% return on capital, the shares look decent value compared with technology peers.

[rivaldo] 18/11/2021 13:00

That's a good point igoe104 - considering the 3.53p dividend/ex-div date FNX's share price is actually 3p up today.