Converge nets P3.9 B in first sem 2022

Published August 11, 2022, 4:37 PM

by Emmie V. Abadilla

Despite the challenging economic environment, fiber broadband provider Converge ICT Solutions Inc. booked a net income of P3.95 billion in the first half of 2022, 21.5 percent more versus the same period last year as it rolled out its high-speed broadband service to more areas nationwide and demand from businesses, particularly small and medium enterprises (SMEs), continued to grow.

“Even as we are feeling the pinch of rising commodity prices on consumer demand, we remain committed to making focused investments to reach unserved and underserved communities in dire need of internet connectivity,” Converge CEO Dennis Anthony Uy stated in Thursday’s ( Aug 11) briefing.

So far, Converge installed nearly 650,000 new fiber-to-the-home (FTTH) ports during the second quarter of the year.

This allowed the Converge fiber network to reach more than 13.5 million homes as of end-June 2022, representing 52.1 percent household coverage.

It also put the company on track to reach the company target of covering 55 percent of Philippine homes by 2023.

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Furthermore, Converge Chief Operations Officer Jesus Romero noted that the recovery of the enterprise sector has been contributing to the company’s sustained growth.

Revenues from Converge Business grew 25.5 percent to nearly P2 billion in the second quarter compared to its year-ago level.

The enterprise sector covering SMEs, large enterprises, and wholesale, with small and medium companies, registered across-the-board growth, doubling their revenue contribution year-on-year for the second quarter of 2022 from the same period in 2021.

Revenues from residential customers, meanwhile, saw a growth of 37.9 percent, from P10.2 billion previously to P14.1 billion in the first six months of the year.

This brings the company’s consolidated revenues to over P16 billion during the period, an increase of 36.3 percent year-on-year.

Meanwhile, earnings before interest, tax, depreciation, and amortization (EBITDA) amounted to P9.2 billion in the first half of the year, 41.5 percent higher from the previous year.

As a result, the company’s consolidated EBITDA margin reached 57.2 percent in the first six months of the year, higher than the 55.1 percent posted during the same period last year.

For 2022, Converge will deepen its reach in North Luzon, Visayas, and Mindanao, eyeing to open in more major cities by year-end.

Already it has established its presence in Cebu, Mandaue, Lapu-Lapu, Davao, and Cagayan de Oro.

“We will continue to expand as we aim to serve the connectivity needs of our people which we hope will also help aid the country’s economic recovery amid the continued threat of COVID-19 and inflationary pressures due to the unstable external environment,” Uy promised.

 
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