Driven by the robust subscriber growth across all segments and peak deployment of its pure fiber networks, fiber broadband provider Converge ICT Solutions, Inc. posted favorable financial performance in 2022.
Consolidated revenues increased 27.3% to reach PhP33.7-billion while EBITDA (earnings before interest, taxes, depreciation, and amortization) rose to PhP19.3-billion and earned net income of PhP7.4-billion. As of yearend, the return on invested capital (ROIC) was reported at 15.6%.
“Converge continues to deliver strong financial results as we sustain the growth in our subscriber base. With our prudent and disciplined financial management, we were able to achieve and even surpass our financial targets despite increased costs and our aggressive expansion in key growth areas,” said Converge co-founder and president Maria Grace Uy.
Attributed to the 11% growth in subscriber base, Converge residential business generated PhP29.5-billion at end-December 2022, or an increase of 27.4%. Revenues from enterprise segment surged 26.4% to PhP4.2-billion, due to the strong revenue growth in small and medium enterprises (SMEs) and wholesale sectors.
The encouraging operation of both residential and enterprise businesses was supported by the company’s continued network expansion which put household coverage to reach 14.9-million at yearend, or 56.2% of total Filipino households. This surpassed the firm’s target of 55% households by 2023.
With a goal of providing majority of Filipino households with pure fiber network, Converge’s port deployment reached eight-million across the country. Converge also continues to invest in backbone improvements to ensure customers of the fastest and highest quality fiber connectivity.
Converge also has P12-billion to 15-billion in capital expenditures (CAPEX) this year to support port deployment in key expansion areas in Visayas and Mindanao.
It also adopted Artificial Intelligence (AI) in its network operations to improve repairmen dispatching, infrastructure and hardware overheating, and the notification of relevant internal network watchmen. This has resulted to the 42% improvement in the company’s Mean Time to Escalate, allowing it to quickly attend to network related problems.
Converge also announced it is bringing fiber connectivity to the country’s low-income households in response to the challenge of having quality connectivity at homes at affordable plans.
Targeting the country’s D and E income segments as its market, this new product, Surf2Sawa (S2S), is a fiber Wi-Fi service at home in prepaid value that provides unlimited fiber internet at 25 megabits per second (Mbps) per household, and offered in the following packages: PhP50 for one day, PhP200 for seven days, PhP380 for 15 days, and PhP700 for 30 days.
“It is our belief that digital access is now a right of everyone. Thus, we want to provide our people with the internet that they don’t just deserve but they can afford as well. In this digital age, we want to make sure that no one will be left behind,” said Converge co-founder and chief executive officer Dennis Anthony Uy.
To avail of this S2S service, a household should pay an installation fee of PhP1,000 which includes the cost of a router.
In terms of service coverage, S2S is now available in over 400 municipalities and cities nationwide, including key areas in Batangas, Bulacan, Quezon, Bicol, Panay, and Negros.