Robust uptake of Converge ICT Solutions Inc. from residential users and increased demand from enterprise clients continue to push the overall top line of the fiber Internet service provider.
In a market report on Monday, Converge said first-quarter revenues grew by 40 percent to P7.75 billion, while core net income increased to almost P2 billion from January to March.
The company registered 188,000 additional gross subscribers during the quarter, up 15 percent from the last year. It led to a cumulative subscriber count of 1.8 million, higher by 53 percent than its year-ago level.
“We are seeing a solid growth in our financials in the first quarter of 2022 and we expect to hit our full-year targets as we remain aggressive in our network rollout and marketing activities both in the residential and enterprise segments,” Converge CEO and co-founder Dennis Anthony Uy told reporters in a press briefing on Monday.
Economy reopening helps
According to Converge president, chief resource officer, and chief risk officer Maria Grace Uy, the reopening of the economy prompted growth for small and medium enterprises.
She said the revenues for the Enterprise business reached P935.5 million during the quarter. It was 25 percent higher than P749.7 million a year ago.
SME contributed 20 percent to the total and grew by 118 percent year on year. Converge SME subscribers reached 25,810 as of 21 March.
“The revival of the economy and the return of businesses — especially SME — has given our enterprise business a push in the first quarter of the year. Moving forward, we hope to offer more value to SME as they continue to recover,” she said.
As of the end-March, the company’s nationwide household coverage is at 47 percent. The 12.2 million homes serviceable by Converge was 70 percent higher than the last year’s numbers.