CSG proves print channel isn't dead

Print solutions provider CSG has reported $108.2 million in sales for the first six months of the financial year.

After suffering declining equipment revenue two years ago, CSG is now on a print growth streak, with sales up $13 million or 14 percent for the six months ending 31 December compared with the same period the year before.

After years of solid growth, CSG sold its IT solutions division to NEC in 2012 and subsequently posted a $22.2 million loss for that financial year. Revenue also suffered a hit, falling from $388.6 million to $184.6 million for 2013.

Now CSG has turned around the decline.

Net profit after tax was also up, climbing 42 percent to $7.6 million.

Revenue was split between Australia and New Zealand, with $51.3 million coming from Australia and $57 million from New Zealand.

A standout performer was the firm’s enterprise business, which achieved an 84 percent increase in revenue in Australia. Key wins included a place on the Queensland Government’s Standing Offer Arrangement for providing print and imaging services.

CSG also continued to rollout the management of 200 devices for Queensland Education, and 337 devices across 16 Queensland schools during the size month period.

CSG’s lease and rental financial solutions division, which launched in early 2013, is also growing. This unit increased its receivables book by 36 percent to $188.6 million. CSG is converting 95 percent of customers in Australia to finance products.

Revenue is now split three ways, with five-year service agreements contributing to more than 50 percent of operating profit, and leasing income contributing 18 percent. Equipment sales contributed 24 percent of operating profit.

Non-print equipment sales accounted for five percent of total equipment sales in Australia. In addition to printers and photocopiers, CSG supplies Samsung tablets, whiteboards, monitors and phones and has been financing laptops and large format displays since 2014.