It was a strong start for the fiber broadband and technology provider Converge ICT Solutions, Inc. (Converge) when its first quarter operation in 2024 registered a 10.4% growth in consolidated revenues to PhP9.5-billion, and ended the period with a net profit of 2.6-billion or 17.5% increase compared with the same period in 2023. These positive results were realized due to the sustained robust demand for its flagship and flanker fiber broadband products and enterprise solutions.
”This strong showing in the first quarter of 2024 puts us solidly on track to reach our revenue guidance for the year. We’re confident we can sustain this steady growth for the rest of the year, especially as we lean into our mass market offerings,” said Converge president and co-founder Maria Grace Y. Uy.
Converge reported an increase in the number of its customers when its quarterly net additions in subscriptions hit 124,793, the highest in 10 quarters. This made Converge’s subscriber base to reach nearly 2.3-million residential customers at end-March. Net additions in subscriptions continued to increase as the company sees continued rising demand for its fiber products, both prepaid and postpaid.
Converge is also diversifying its potential offerings to go beyond connectivity through cooperation with global tech companies, such as the recently concluded Memorandum of Understanding with NAVER Cloud of South Korea, according to Dennis Anthony Uy, CEO and co-founder of Converge.
Buoyed up by the performance of micro, small and medium enterprises (MSMEs), revenues reported by Converge’s Enterprise segment grew by 10.5% in the first quarter of the year, to reach P 1.4-billion. MSME led Enterprise sub-segment in terms of growth, increasing by 31%. Enterprise remains a growth area for the company as it intends to officially roll out forthcoming products targeting the MSME sector and expand services to the public sector.
“For the rest of 2024, we are laser-focused on growing our sales partnerships and distribution channels to further prop up customer acquisition in our mass market brands. We also plan to strengthen the push for our Enterprise-grade solutions to growing industries,” said Converge chief commercial officer Benjamin Azada.
“Keeping customers happy remains a top priority for us; that’s why we keep fortifying our network and pushing programs to improve customer experience. And we are seeing these efforts bearing fruit with elevated customer satisfaction,” added Converge chief operations officer Jesus C. Romero.
Gains were made in residential churn management as consolidated residential churn reached a low 1.82%, the lowest since the fourth quarter of 2022. This contributed to the shoring up of net additions in the latest preceding quarter.
