Backend service and software provider CSG International reported 2% revenue growth in the second quarter to $193 million, buoyed by expanded relationships with top cable operators Comcast and Charter Communications, as well as optimism that a renewal deal with Dish Network is close at hand.
Last month, the Omaha, Nebraska-based vendor said it extended its deal with Charter, consolidating separate contracts with Charter-acquired operators Time Warner Cable and Bright House Networks into one agreement that expires in 2021.
“This new contract consolidates the various contracts that we had with Time Warner and Bright House Networks and provides us with the opportunity to do even more for Charter,” said Bret Griess, president and CEO of CSG, in the company’s second-quarter earnings call Thursday. (A transcript of the event was provided by Seeking Alpha.)
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“Currently, Charter utilizes us and a competitor to provide customer care and revenue management services,” Griess added. “We provide our services to approximately 15 million of Charter's 25 million customers. In addition, Charter utilizes our field force automation solution, Workforce Express in their footprint, while the legacy Time Warner locations use a competitor's solution.”
Regarding Comcast, Griess said that CSG converted another 2.7 million residential Comcast customers off a “competitor’s” legacy platform “and on to our advanced convergent platform” in the second quarter.
“This brings the total number of Comcast residential customers converted onto our platform to almost 10 million since 2014,” he added.
As for Dish, CSG’s contract with the satellite TV operator runs out at the end of 2017.
“We believe we are in very good standing with Dish,” Griess said. “They are an incredible customer, and our teams are doing yeoman's work to make business sense for them and make business sense for us, and we got confidence by bringing the right A game every day. We will continue our relationship with Dish, as we move forward.”