25th Mar 2014 09:42
LONDON (Alliance News) - Billing Services Group Ltd Tuesday reported a narrower annual pretax loss but warned that it expects both its revenue and its earnings before interest, tax, depreciation and amortisation to fall again in 2014
Billing Services shares fell 20% in response early Tuesday, quoted at 2.80 pence.
Reporting a USD9.5 million pretax loss for 2013, compared with USD14.3 million for 2012, Billing Services said it expects revenue and EBITDA will continue to be affected by the secular decline in the volume of billable long distance and operator service calls initiated on landline phones.
The slide is expected to be partially offset by higher revenue and EBITDA from services to the wireless sector.
Billing Services, which offers financial clearinghouse services for merchants, online stores and telecommunications companies, said it expects revenue to be between USD45.0 million and USD48.0 million and EBITDA to be between USD8.5 million and USD9.5 million in 2014.
Billing Services said current trading remains in line with the board's expectations and consistent with the recent trading conditions.
Revenue in 2013 fell to USD53.9 million, from USD70.3 million in 2012.
"The decrease was expected, due in large part to the discontinuation of billing for enhanced service transactions, combined with the secular decline in landline phone usage," Norman Phipps, chief executive, said in a statement.
The decline in revenues had a corresponding effect on EBITDA, which was USD12.4 million in 2013 compared with USD15.8 million in 2012.
During 2013, the company recorded an USD8.8 million non-cash impairment charge against goodwill. The charge related to goodwill which arose in 2003 in connection with the purchase of one of the company's clearing and settlement businesses for wireline service providers.
In 2013, Billing Services generated USD11.5 million of cash from operations (adjusted for additions to restricted cash) and paid down USD15.9 million in debt, reducing outstanding debt to USD16.0 million. The company ended the year with USD12.7 million of unrestricted cash.
Phipps said he anticipates the business will continue to generate a favorable cash flow over the foreseeable future.
By Samuel Agini; [email protected]; @samuelagini
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
BILL.L