CSG Systems International Secures Major Comcast Contract Renewal Through 2030

CSG Systems International has reported its financial results for the third quarter of 2024, concluding on September 30. The company noted total revenue of $295.1 million, up 2.9% from the previous year, supported by growth in software as a service (SaaS) and related solutions. The operating income slightly declined to $31.8 million, reflecting market pressures and restructuring expenses. Notably, CSG has renewed its Watershed Contract with Comcast, extending their partnership until 2030, which is expected to enhance profitability in the coming years. The increase in revenue was partly due to around $6 million from newly acquired businesses earlier in 2024, which helped to offset decreasing software and services revenue. The non-GAAP operating income for the third quarter also improved to $50.1 million, indicating a more favorable adjustment when excluding certain expenses. CSG is committed to returning over $100 million to its shareholders through dividends and buybacks over the next two years, demonstrating a solid approach to capital management. In conjunction with these financial results, CSG has updated its financial guidance for the full year 2024, indicating a stable revenue outlook ranging between $1.2 billion and $1.24 billion. Expectations for non-GAAP EPS have also been revised upward to between $4.25 and $4.55. This financial assurance, bolstered by the Comcast contract, reassures investors about the company’s future stability and potential growth. Overall, CSG Systems International's performance underlines its ongoing expansion efforts and its strategic priorities, focusing on enhancing shareholder value through commitments to profitability and sustained partnerships with key clients like Comcast.