Foneworx lifts its dividend 71%

FoneWorx on Friday (27 September) reported an 8.9% rise in revenue to R107.3 million for the year ended June 2013, while also lifting its dividend.

The group provides interactive telecommunication, switching and business services, orientated around fixed and mobile networks.

The increase, FoneWorx said, is mostly attributed to the 18.4% increase in revenue from MediaWorx division up to R42.4 million.

The BizWorx division showed marginal revenue growth of 3.5%, however the gross profit increased by 6.4% for the year from R46.3 million to R49.3 million.

“This improvement is due to an improved mix in sales via our dealer network and directly via FoneWorx, with the latter enjoying greater gross profit margins,” FoneWorx said.

The group’s operating profit was 9.8% higher at R31.4 million while earnings before interest depreciation and amortization (ebitda) moved to R35.9 million from R32.8 million in 2012.

During the year under review the group declared and paid a dividend of 7 cents per share, and on 27 September 2013 the Board of FoneWorx declared a dividend of 12
cents per share, an increase of 71.4%.

Looking ahead, FoneWorx said it remains positive about the outlook for the ensuing year to June 2014.

“BizWorx continues to provide the group with solid and predictable income with Fax2Email and Email2Fax showing good growth. Although we don´t foresee double digit growth in this division, stable single digit growth is anticipated.”

“This division is entirely automated and requires very little maintenance. It is very scalable with limited human resource and minimum capex,” FoneWorx said.

It said that MediaWorx has big potential going forward in line with the emerging “digital economy” and growth in mobile e-commerce.

“Our focus over the next few years will be to deploy our systems, intellectual property and technology in assisting our clients to develop databases which enable one-to-one marketing and e-commerce solutions linked to loyalty programmes.”

FoneWorx said it also “very excited” about its new shareholder, Caxton, who acquired 32.7% in the group.

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Foneworx lifts its dividend 71%