Gainful strides characterized the performance of fiber broadband provider Converge ICT Solutions, Inc. in the first half of 2024 brought about by the strong demand for its products coupled with company’s prudent cost management initiatives.
The company’s operations during the first half of the year resulted in a growth in net income after tax of 23.6% year-on-year to PhP5.3-billion. Consolidated gross revenues, likewise grew 12.4% to reach PhP19.5-billion due to the uptick registered in its residential broadband and sustained double-digit growth in its enterprise business.
The company’s net additional residential subscribers, which ballooned 142% from 92,302 to 223,751 during the six-month period resulted in the 11.8% growth in residential revenues to PhP16.6-billion. Enterprise revenues, on the other hand, rose 16.0% to PhP2.9-billion, following the rollout of products targeting the micro, small, and medium enterprises (MSMEs), and the expansion of regional enterprise sales.
“Our industry-leading performance in the first half of the year is a promising sign that 2024 will
be another banner year for us. We see the demand for fiber broadband to remain unhampered,
allowing us to continue reaching more and more Filipinos across different income levels with our
flagship FiberX, low-cost postpaid BIDA Fiber, and prepaid Surf2Sawa offerings,” said
Converge president and co-founder Maria Grace Uy.
Uy also said, “we ended the first half of the year on an optimistic trajectory. We expect to keep the momentum going into the latter half of the year.”
Regarding CAPEX, Converge CFO Robert Yu shared that Converge spent around PhP14.7-billion in cash CAPEX during the first half of the year. However, it still has around PhP10-billion to PhP12-billion to be spent during the latter half of the year.
As of end-June 2024, the consolidated subscriber base of Converge reached 2.35-million, a
growth of 19.4% from 1.97-million as of the same month last year.
“With our recent commercial arrangement with Sky Cable Corp., we see these numbers as just
the starting point. We expect the collaboration to bear fruit in terms of revenue growth, as we
are bound to see increased port utilization and further monetize our network,” noted Converge
CEO and co-founder Dennis Anthony Uy.
Converge remains to be the fastest Internet Service Provider in the Philippines in the first half of 2024, as Ookla’s latest independent survey among ISPs in the Philippines shows a speed score of 147.77 Mbps, the best in the industry. This is the second year running that Converge has bested its competitors in speed and digital experience.
Last month, Converge also joined hands with Nasdaq-listed firm Ribbon Communications Inc. to
expand its fiber network system and data transmission capacity, from its existing 800 Gigabits per second (Gbps) to 1.2 Terabit per second (Tbps) per channel. This system upgrade would mean faster and better experience for Converge customers.
Solidifying its reputation as a first-mover in innovative technology, Converge also inked a
cooperation agreement with global tech leader Super Micro Computer Inc., the US-based total
IT solutions provider for artificial intelligence (AI), Cloud, Storage, and 5G/Edge, to pioneer AI-
powered green data centers in the Philippines.
“While we keep a firm handle on our fiber broadband products, we are by no means limiting our
technology solutions to these. With the guidance of the Founders, we will continue to expand
our business to encompass Filipinos’ digital needs,” said Converge chief operations officer
Jesus Romero.
Asked if they have new products designed for MSMEs to be launched this year, Benjamin Azada, Converge chief commercial and sustainability officer, said, they are going to focus on what they have already launched and MSME products that are not limited to connectivity products. They also have value-added services relating to HR payroll and even hotel management system. They will continuously coming up in the pipeline new services across all segments.
