ICT Profits Drop in 2007, Predicts Greater Revenues from Collections

International contact center and BPO provider ICT Group Inc. last week reported a fourth quarter net loss of $3 million compared with a profits of $5.1 million in the fourth quarter of 2006. Newton Pa.-based ICT attributed the loss to restructuring charges.

Revenues in the fourth quarter were $112.5 million, down from $117.2 million in the same period a year ago. Domestic revenues were down 18 percent to $73.2 million as the firm shifted production to off-shore centers and lost call volume from several financial services clients. In the fourth quarter of 2007, ICT handled 58 percent of its domestic calls from offshore centers, compared with 41 percent in the same period a year ago.

The company’s chairman and CEO said ICT expects going forward to see greater revenues from collections work.

“A decline in credit card related programs from certain of our domestic financial services clients in the fourth quarter … will be partially offset by new programs from … clients who are outsourcing increased volumes of collections, customer service and BPO applications,” said John J. Brennan in a statement.

International revenues rose 43 percent to $39.3 million. Revenues from the Services division, including marketing, technology and business process outsourcing, were down 2 percent to $84.3 million.

For the year, ICT reported a net loss of $11.8 million, compared with profits of $16.8 million in 2006. Revenues in 2007 came in at $453.6 million, up from $447.9 million.

ICT also announced recently it plans to add 200 new telemarketing jobs in Canada to service a contract from Bell Mobility, the wireless division of Bell Canada. ICT is approved for a five-year payroll rebate of up to $1.4 million from Nova Scotia Business Inc. the business development agency for the province. ICT reports it employs more than 700 customer service and sales representatives at Canadian call centers and through a home-based teleservices agent program in Nova Scotia.