CSG signs contract with Comcast, lowers yearly forecast
CSG International has inked a multi-year billing and customer care agreement with Comcast, but as a result of the new deal the vendor revised down its outlook for this year.
CSG’s previous agreement with Comcast was slated to expire at the end of last year, but was extended until March while the two sides hashed out a new deal. The new agreement, which included pricing adjustments, was effective March 1.
Under terms of the new agreement, CSG will provide print and mail services for four more years, with the option to extend the deal for two consecutive one-year terms.
Last year, Comcast accounted for roughly 20 percent of CSG’s total revenue. With the new agreement, CSG expects GAAP earnings per share from continuing operations of $1.38 - $1.49, non-GAAP earnings per share of $2.05 - $2.15, on revenues of $740 million - $760 million for 2013.
CSG had previously projected 2013 GAAP earnings per share from continuing operations of between $1.59 and $1.70, non-GAAP earnings per share between $2.23 and $2.33, as well as revenues of $755 million - $775 million.
“We are pleased to have extended our relationship with Comcast Cable,” said Peter Kalan, president and chief executive officer of CSG International. “As Comcast Cable continues to innovate the customer experience by giving more choice and control to their customers, CSG will continue to provide our highly dependable, scalable and reliable products and services to help them succeed. For over twenty years, we have been a trusted partner for Comcast Cable and work every day to earn that trust.”
CSG’s client roster also includes AT&T, Dish Network, France Telecom, Orange, T-Mobile, Telefonica, Time Warner Cable, Vodafone, Vivo and Verizon.