31st Mar 2016 11:14
LONDON (Alliance News) - US-based clearing and financial settlement products provider Billing Services Group Ltd on Thursday said its earnings declined in 2015 and it expects this to continue in 2016.
Earnings before interest, taxation, depreciation and amortisation for the group fell to USD6.4 million from USD8.8 million a year earlier, as revenue declined to USD36.4 million from USD42.4 million.
Billing Services said that while its gross margin improved to 51% from 48% in the year thanks to cost-cutting, the decline in Ebitda and revenue is set to continue in 2016.
The company will continue to be hit by a secular decline in the volume of billable long-distance and operator service calls done via landline phones, which will be partially offset by higher sales and earnings from the wireless sector.
Billing Services guided to Ebitda of USD5.5 million to USD6.0 million for 2016, on revenue of USD32.0 million to USD34.0 million.
"2015 was another year of success. The repayment of all debt and ongoing resolution of certain litigation-related liabilities has allowed us to focus more attention on operations and strategy as we accelerate our revenue stream diversification from a niche service provider for the US landline sector to an international service provider for wireless market applications," said Chairman Pat Heneghan.
Shares in Billing Services were down 2.9% to 4.25 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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