Converge profit up on strong demand

Rising demand for reliable connectivity from both residential and enterprise customers pushed the first-quarter net income of fiber internet provider Converge ICT Solutions, Inc. up by 18.3 percent to P3 billion from P2.6 billion a year earlier.

The company said Thursday that this resulted in a net income margin of 28.0 percent, up from 26.7 percent in the same period last year.

Revenues rose 13.2 percent to P10.8 billion. Residential services contributed P9.1 billion, up 11.5 percent year on year, with a total of 2,701,336 subscribers as of March. Postpaid users reached 2,340,208, while prepaid customers totaled 361,128.

Its prepaid products, BIDA Fiber and Surf2Sawa, saw net additions of 24,102 and 70,497, respectively.

Enterprise revenues jumped 22.9 percent to P1.7 billion, with the wholesale segment up 54.0 percent, driven by new customers and service innovations.

EBITDA climbed 14.8 percent to P6.7 billion, with an EBITDA margin of 62.0 percent, attributed to “prudent cost management and improved operating efficiency.” Return on invested capital stood at 18.4 percent, slightly higher than the previous quarter’s 18.3 percent.

As of end-March, outstanding borrowings declined to P28.3 billion from P29.5 billion in December 2024. Net debt improved to P10.3 billion from P12.5 billion, while the net debt-to-EBITDA ratio remained low at 0.4x.

Cash capital expenditures for expansion projects, including over 35,000 fiber ports and 60 kilometers of fiber backbone, reached P2.6 billion in the first quarter.

To enhance its offerings, Converge launched the Super FiberX bundle for residential customers, which includes boosted speeds, a Google-certified Android TV box, BlastTV access, and a WiFi-6 modem. It also became an authorized reseller of Starlink satellite broadband for remote areas.

“We’re among the few in the Philippines authorized by Starlink to resell its services—an acknowledgment of our deep market expertise and commitment to meeting the evolving needs of both enterprise and government clients,” said CEO Dennis Anthony Uy.

“We’re bringing solutions that empower industries to scale and innovate, even in the most remote areas.”

Uy also said a nationwide partnership with Nasdaq-listed Ribbon Communications is expected to upgrade Converge’s fiber network using AI-enabled data transmission.

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