Billing Services Group Limited (BSG) releases unaudited interim results for the six months ended June 30, 2010

San Antonio, Texas (Vocus) August 12, 2010

BSG, a leading provider of clearing, settlement, payment and financial risk management solutions for the telecommunications industry, merchants and online stores, today announces its unaudited interim results for the six months ended June 30, 2010.

Financial Highlights
(All amounts in US$) Six Months Ended June 30
                                        2010             2009                % Change

Revenues                     $75.5 million        $ 71.6 million         + 5%

EBITDA (1)                     $18.6 million        $ 19.2 million         - 3%

Net income                     $ 4.5 million        $ 5.8 million        - 22%    
Net income per basic share        $0.02 per share    $0.02 per share          -

Net income per diluted share        $0.02 per share    $0.02 per share         -

(1)    EBITDA (a non-GAAP measure) is computed as earnings before interest expense, income taxes, depreciation, amortization and other non-cash and non-recurring expenses.

Operational Highlights

•     Revenue increased by $3.9 million (5%) to $75.5 million (2009: $71.6 million)
•     Bill2Phone™ revenue increased by $3.7 million to $4.3 million in the first half of 2010 (2009 first half: $0.6 million; 2009 second half: $1.3 million)
•     Implemented a reduction in force which will lower future annual operating expenses by approximately $2.2 million

Current Trading

•     Year-to-date results are modestly better than expectations
•     Second half revenues and earnings will likely be modestly lower than first half results

Commenting on the results, Greg Carter, Chief Executive Officer, said:

“Our first half results demonstrate progress in several areas. Revenues advanced 5% due in part to gains in the Bill2Phone™ service offering. With EBITDA of $18.6 million, we reduced long-term debt by $5.6 million and increased our cash position by $4.3 million.

Our first priority is to generate revenues from new market-driven product offerings. At the same time, we are acting aggressively to improve processes and capitalize upon cost-reducing opportunities. We made advances in both areas during the first half of 2010.

We are confident about the business, though the realities of the current market will likely restrain performance over the near term. Nonetheless, we expect continued successful execution of value-enhancing strategies to generate strong cash flow and pay down long-term debt.”

For complete report, please visit Billing Services Group, Limited

INQUIRIES:

Billing Services Group Limited
+1 210 949 7000
Greg Carter
Norm Phipps

Evolution Securities Limited
+44 (0) 20 7071 4300
Stuart Andrews

MEDIA RELATIONS:                                     
+1 210 479 7255
Leslie Komet Ausburn                                    
+1 210 326 8992

NOTE TO EDITORS:

BSG (http://www.bsgclearing.com) was admitted to the AiM market of the London Stock Exchange in June 2005 and trades under the symbol BILL. The Company’s operating subsidiary, BSG Clearing Solutions, is the leading provider of third party clearinghouse services for the North American telecommunications industry.

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