26th Mar 2018 11:02
LONDON (Alliance News) - Billing Services Group Ltd on Monday sunk to a loss after losing a major partner and said it will feel the financial effects of another third-party withdrawal in 2018.
The stock was down 18% at 2.10 pence per share on Monday.
The IT service management company reported a pretax loss of USD9.1 million in 2017, compared with USD13.3 million profit it made the prior year, due to impairment charge against goodwill of USD15.3 million. Excluding this, the company would have delivered a USD6.3 million profit, it said.
Revenue declined 30% to USD21.1 million from USD30.2 million the year before. This was after the group's largest third-party biller AT&T Inc decided to discontinue third-party billing in December 2016.
What's more, Billing Services said its 2018 results will be affected by Verizon Communication Inc's withdrawal from third-party billing at the end of May 2017.
Billing Services Non-Executive Co-Chairmen Denham Eke and Jason Wolff said: "The 2017 results demonstrate the company's agility under difficult circumstance and our commitment to maximize shareholder value. Most significantly, the company succeeded in returning USD5.0 million of cash to shareholders through the tender offer, and delivering USD1.1 million of cash flow from operating activities."
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