12th Sep 2016 07:49
LONDON (Alliance News) - Billing Services Group Ltd, which provides telecommunication clearing and financial settlement products, on Monday said a move by a US carrier to stop wireline third-party billing may hit its future revenue and earnings.
In August, Billing Services said a local exchange carrier in the US, which is did not name, has entered into an agreement with the Federal Communications Commission to cease wireline third-party billing, with only limited exceptions.
Billing Services said it has been in talks with the carrier involved and said, at present, it appears the carrier intends to take action beyond what is required by the US communications industry regulator.
Though the exact financial outcome of this is unclear at present, Billing Services said it currently believes the move will have some impact on its earnings and revenue in 2016 and a "material" impact in the future.
Billing Services said it is currently consideration alternative billing arrangements which it said could offer advantages over third-party billing through the carriers.
Billing Services shares were down 25% at 3.00 pence early Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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