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(Sharecast News) - Fonix said on Thursday that it delivered continued growth across the UK and international markets in the six months ended 31 December, as the mobile payments and messaging group reported higher gross profit and adjusted EBITDA and highlighted accelerating overseas expansion.
In a trading update for the first half of the 2026 financial year, Fonix said gross profit rose 7.1% year-on-year to 10.5m, while adjusted EBITDA increased 6.4% to 8.3m, both in line with management expectations.
The AIM-traded company said costs included 0.1m of exceptional legal and consultancy expenses linked to preparations for future international expansion, which were not added back.
Total payment volume increased 7% to 160m, reflecting growth across both payments and messaging, and the platform maintained 100% uptime throughout the period.
Fonix said it intended to pay an increased interim dividend in March, in line with its policy to distribute at least 75% of adjusted earnings per share.
Internationally, the group said its expansion strategy continued to gain traction.
In Portugal, Fonix launched full commercial services in late September with a leading broadcaster, with services scaling well and discussions progressing with additional broadcasters.
Connectivity had now been completed with all mobile networks in a third overseas European market, where a three-month pilot of interactive services with a major broadcaster was scheduled to launch in the second half.
Fonix said it had also established a legal entity and made its first local hire in a fourth European market, with services expected to launch in the 2027 financial year.
Product development also progressed during the period.
Fonix expanded the rollout of its PayFlex product across all brands of two leading UK radio broadcasters, with the first Irish customer expected to adopt the product in the third quarter.
The company completed the first customer launch of CompsPortal in December and reported a strong pipeline of prospective users, while a successful pilot of RCS messaging was delivered with a leading UK broadcaster.
Looking ahead, Fonix said it entered the second half of the 2026 financial year with its strongest trading run-rate to date from the existing client base and positive momentum across international markets.
The company said it had not yet seen any negative impact from upcoming UK tax changes affecting gaming operators, which now accounted for less than 7% of gross profit, and added that it continued to see a growing pipeline of opportunities across new product innovations.
"We've had a strong first half, with trading momentum building across both the UK and international markets," said chief executive Rob Weisz.
"Entering the second half of the year with the strongest UK trading run-rate in the company's history, we continue to demonstrate our ability to nurture growth from existing customers through a combination of ongoing product innovation and consultative partnership."
He added that international expansion was "gaining traction", with Portugal scaling well and further European opportunities progressing, leaving the board confident in meeting full-year expectations.
At 1219 GMT, shares in Fonix were up 3.7% at 175.25p.
Reporting by Josh White for Sharecast.com.