BEDFORD, Mass.—Boston Communications Group Inc. was hit hard by the ongoing defections of Verizon Wireless, Cingular Wireless L.L.C. and Alltel Corp. from its real-time billing platform, and said it would be relying heavily on Sprint Nextel Corp. for future revenues.
BCGI’s net income for the first quarter was down 44 percent from the first quarter of 2005, to $907,000. Revenue slid 6 percent to $24.7 million. However, the company received a one-time income tax benefit of $975,000.
BCGI reported that as of March 31, 2006, it had 3.75 million subscribers on its real-time billing platform, down by 40,000 subscribers from the same period last year and down 342,000 customers from Dec. 31, 2005. The company noted that the decrease in subscribers came from the loss of Alltel, Cingular and Verizon Wireless.
BCGI said it expects its second quarter revenues to be down as well, and that it would incur a net loss. The three carriers who are migrating off its platform accounted for about 19 percent of its first quarter revenues. Sprint Nextel, on the other hand, comprised 66 percent of BCGI’s consolidated first quarter revenue and “is expected to increase its revenue in dollars and as a percentage of the company’s overall revenues.”
Company officials noted that BCGI is attempting to diversify its offerings and develop new markets domestically and abroad, including serving mobile virtual network operators.
“We continue to pursue our strategy of revenue diversification focused on international expansion of our addressable markets,” said E.Y. Snowden, BCGI’s president and chief executive officer. “We believe we are well positioned to meet the growing needs of worldwide wireless operators.”
