Comcast Strengthens Billing Bond with CSG
Comcast is taking its relationship with billing systems and services specialist CSG a step further, announcing on Thursday it will turn over its entire residential billing services to its long-time partner.
CSG International has been working with Comcast Corp. (Nasdaq: CMCSA, CMCSK) for many years, providing the cable operator with a customer care and billing platform for two-thirds of its existing residential customers. Today's expansion will see the BSS vendor take over Comcast's entire residential business. The pair have signed a contract that extends through June 30, 2019. (See Comcast Deal Shrinks CSG's Outlook and CSG Reups With Comcast.)
This means that CSG will be consolidating an additional 2.3 million residential customers onto its billing platform in early 2015, as well as taking on additional customer account migrations moving forward. Comcast is a high-profile win, but the billing company has also signed up other mobile and cable companies of late, including Grande Communications and MTN Group Ltd. in South Africa.
In announcing the partnership, Comcast noted that consolidating with CSG will make it easier for customers to interact with the cable company, an interesting statement given the recent scrutiny Comcast has come under for poor customer service. (See What Can We Learn From Comcast's Customer Service Nightmare?)
"CSG has been a great partner and this new agreement will help us provide more consistent customer interactions by creating opportunities to standardize and streamline our back-office operations," Scott Alcott, chief information officer for Comcast Cable, wrote in a statement.
CSG announced its enhanced relationship with Comcast as part of its second quarter earnings, which included non-GAAP operating income of $29.8 million, or 16.1% of total revenues. The company brought in revenues of $184.6 million in the quarter, down 2% from $180 million in the previous quarter. The dip caused CSG stock to lose 2.14% of its value and sink to $26.04 in morning trading. (See CSG Earns $29.8M in Q2.)
— Sarah Reedy, Senior Editor, Light Reading