Foneworx revenue up 32% due to change in payment policy

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“This is partly attributed to a change in payment policy that some network providers had where they now pay us our full revenue earned through value added services and then charge us separately the bearer cost of such services,” commented Foneworx on their financial results for the six months ended 31 December 2013.

[DATA FWX:FONEWORX HOLDINGS LTD.] is an investments holding firm whose subsidiaries provide interactive telecommunication, switching and business services orientated around fixed and mobile networks.

Gross profit increased by 21.86 per cent to 36.5 million rand while profit before tax rose 10.5 per cent to 19 million rand.

Earnings per share was also up 10 per cent to 9.88 cents and a dividend of 12 cents per share was declared, a 71 per cent increase from the previous period.

The group’s staff costs however increased by 64 per cent to 12.6 million rand due to their anticipated increase in sales at their digital printing company, Mediaworx, as well as the launch of knowledge 350º.

“We are very excited about the re-engineered MediaWorx route to market incorporating Knowledge 350º as we believe that ‘knowledge’ will become the next intellectual property for corporations, specifically as there has been a dramatic move to one-to-one marketing which has been facilitated by the massive roll-out of smart devices enabling consumers to access information that is relevant to them as and when required,” continued the statement.

The total asset value of the group increased by 9.28 per cent from 138.4 million rand to 151.2 million rand while cash from operating activities also increased by 23.1 per cent to 14.5 million rand.

Foneworx stated that they believe it is imperative that companies become sensitive to the fact that consumers are becoming more demanding and require a relevant dialogue through engagements via various digital channels.

“In order to create the relevant dialogue, companies must develop single customer views and deep granularity around each customer so as to communicate in the most relevant fashion possible,” they added.

The group also anticipates good growth in Mediaworx over the next six months with the deployment of knowledge 350º as it will accelerate the number of technical services developed by Foneworx over the last 17 years in a structured format.