11th Sep 2013 10:44
LONDON (Alliance News) - Billing Services Group Limited Wednesday said net losses increased in the first half, as it wrote down USD8.8 million in goodwill on a clearing and settlement businesses it bought in 2003 and whose business has now been discontinued.
The provider of clearing and financial settlement products posted an increased net loss of USD9.3 million for the six months ended June 30, compared with a USD8.2 million loss a year earlier, while revenue declined to USD27.0 million, from USD38.5 million in 2012, reflecting the end of some operations.
The decrease reflects lower transaction volumes across all clearing and settlement services and related declines in chargeable customer service activities, offset in part by revenues provided by recent acquisition Connection Services Holdings.
Billing said revenue for the rest of the year is expected to be adversely affected by longer sales cycles associated with larger deals at CSL, coupled with the ongoing secular decline in the volume of billable long distance and operator service calls initiated on landline phones. It cut its revenue guidance for the full year, but said its earnings before interest, tax, depreciation and amortisation guidance remains unchanged.
Ebitda fell to USD5.8 million in the first half, from USD8.7 million.
However, the company said trading for the period was in-line with expectations and consistent with recent trading conditions experienced by the firm.
Billing was able to increase its Wi-Fi network partners' footprint to over five million hotspots during the period.
It consolidated and upgraded its data centres in the UK and US in line with the CSL acquisition plan and signed six new third party verification agreements, including two within the energy industry.
"Our aggressive focus on cash flow allowed for an USD11.1 million debt reduction in the first half," Chief Executive Norm Phipps said in a statement.
"Our business plan continues to prioritize debt reduction, development or acquisition of new diversifying revenue sources and, as feasible and prudent, the distribution of cash to shareholders."
The company distributed USD2.8 million to shareholders in 2012.
Billing shares were trading at 2.05 pence Wednesday morning, down 0.95 pence, or 31.7%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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