17th Sep 2014 10:01
LONDON (Alliance News) - Billing Services Group Ltd Wednesday said it swung to a profit in the first half after the year-earlier period was hit by writedowns, but revenue fell and it cut its revenue guidance for the full year as it continues to suffer from the decline in landline telephone usage.
The company said its pretax profit in the six months to June 30 was USD3.3 million, against the USD10 million loss posted a year earlier. The 2013 number was hit heavily by a goodwill impairment charge of USD8.8 million related the 2003 acquisition of one of its clearing and settlement businesses for wireline service providers.
Revenue fell USD22.1 million, from USD27 million, hit by lower transaction volumes across the company's clearing, settlement and customer service operations. This was only partially offset by higher managed service fees from its BSG Wireless business.
It said it expects full-year revenue to be between USD42 million and USD45 million, slightly lower than previous guidance.
The company said its focus for the coming year will be on keeping costs low and paying down its debt. The company paid down USD4.9 million in debt in the first half and expects the remaining USD11.1 million on its books to be paid down within a year. It also said its headcount in its US-based billing, clearing and third-party verification business has been cut to less than half its level of five years ago.
Billing Services said it is working to mitigate the continued decline in landline telephone usage by increasing its presence in the wireless sector.
Billing Services shares were flat on Wednesday at 3.25 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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