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1. Company Snapshot

1.a. Company Description

Fonix Mobile Plc provides mobile payments and messaging services for media, charity, gaming, ticketing, mobility, and other digital service businesses in the United Kingdom.It offers carrier and SMS billing, and managed services.The company was incorporated in 2006 and is based in London, United Kingdom.

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1.b. Last Insights on FNX

Fonix Mobile plc's recent performance was negatively impacted by a lack of significant news or developments. The company's most recent dividend payment of £0.029 per share on April 4th, while a positive event for shareholders, does not contribute to the company's growth or revenue. The absence of any notable earnings releases or significant announcements in the past three months suggests a period of stability rather than growth. The company's financials and growth prospects remain relatively unchanged, with no major catalysts for improvement in the near term.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.64%)

6. Segments

Mobile Payments

Expected Growth: 12%

Fonix Mobile plc's 12% growth in Mobile Payments is driven by increasing smartphone adoption, rising e-commerce transactions, and growing demand for contactless payments. Additionally, partnerships with major merchants, expansion into new markets, and investments in user experience and security are contributing to the segment's growth.

Mobile Messaging

Expected Growth: 10%

Fonix Mobile plc's 10% growth in Mobile Messaging is driven by increasing smartphone adoption, rising demand for personalized customer engagement, and growing need for secure authentication. Additionally, the shift towards omnichannel communication, expansion into new markets, and strategic partnerships are contributing to the segment's growth.

Managed Services

Expected Growth: 16%

Fonix Mobile plc's Managed Services segment growth of 16% is driven by increasing demand for mobile payment solutions, expansion into new markets, and strategic partnerships. Additionally, the rise of digital transactions, growing need for secure payment processing, and the company's ability to provide customized solutions to clients are contributing to this growth.

7. Detailed Products

Mobile Billing

Fonix Mobile's mobile billing service enables customers to purchase digital goods and services using their mobile phone bill or prepaid balance.

Carrier Billing

Fonix Mobile's carrier billing service allows customers to purchase digital goods and services using their mobile phone bill or prepaid balance, with the payment being added to their mobile phone bill or deducted from their prepaid balance.

Direct Carrier Billing

Fonix Mobile's direct carrier billing service enables customers to purchase digital goods and services directly from their mobile phone, with the payment being added to their mobile phone bill or deducted from their prepaid balance.

PSD2 Compliant Payments

Fonix Mobile's PSD2 compliant payment service enables customers to make payments using their online banking credentials, providing a secure and convenient payment method.

Mobile Identity

Fonix Mobile's mobile identity service provides a secure and convenient way for customers to authenticate and verify their identity using their mobile phone.

8. Fonix Mobile plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Fonix Mobile plc operates in a highly competitive market, with many substitutes available to customers. However, the company's strong brand recognition and customer loyalty programs help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Fonix Mobile plc's customers have a high bargaining power due to the availability of alternative service providers. The company's pricing strategy and customer retention programs are critical to maintaining customer loyalty.

Bargaining Power Of Suppliers

Fonix Mobile plc has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company's strong relationships with suppliers also help to mitigate the risk of supply chain disruptions.

Threat Of New Entrants

The threat of new entrants in the mobile telecommunications industry is moderate, as significant capital investments are required to establish a new mobile network. However, the company must continue to innovate and invest in its network to stay competitive.

Intensity Of Rivalry

The mobile telecommunications industry is highly competitive, with multiple players competing for market share. Fonix Mobile plc must focus on differentiating its services and improving its operational efficiency to maintain its market position.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.36%
Debt Cost 7.48%
Equity Weight 99.64%
Equity Cost 7.48%
WACC 7.48%
Leverage 0.36%

11. Quality Control: Fonix Mobile plc passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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PayPoint

A-Score: 5.4/10

Value: 3.1

Growth: 3.8

Quality: 5.2

Yield: 10.0

Momentum: 5.0

Volatility: 5.7

1-Year Total Return ->

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Fonix Mobile

A-Score: 5.4/10

Value: 3.0

Growth: 6.9

Quality: 8.2

Yield: 7.5

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

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Wirtualna Polska Holding

A-Score: 4.9/10

Value: 7.0

Growth: 8.0

Quality: 5.8

Yield: 4.4

Momentum: 0.5

Volatility: 4.0

1-Year Total Return ->

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Exclusive Networks

A-Score: 4.9/10

Value: 4.8

Growth: 7.4

Quality: 4.3

Yield: 5.0

Momentum: 2.0

Volatility: 6.0

1-Year Total Return ->

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Bytes Technology Group

A-Score: 4.6/10

Value: 3.5

Growth: 6.1

Quality: 9.0

Yield: 5.0

Momentum: 2.0

Volatility: 1.7

1-Year Total Return ->

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BYGGFAKTA GROUP

A-Score: 3.4/10

Value: 2.5

Growth: 8.4

Quality: 4.1

Yield: 0.0

Momentum: 4.0

Volatility: 1.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.97$

Current Price

1.97$

Potential

-0.00%

Expected Cash-Flows