Converge ICT Solutions Inc. (PSE: CNVRG) booked a net income of P3.95 billion in the first half of 2022, a 21.5% growth over the same period last year, despite the challenging economic environment as it continues to roll out its high-speed broadband service to more cities and municipalities across the country and increased demand from businesses, particularly small and medium enterprises (SMEs).
“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 which are in dire need of reliable and quality internet connectivity,” said Converge CEO Dennis Anthony Uy.
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% household coverage. This puts the company on track to reach the company target of covering 55% of Philippine homes by 2023.
Converge Chief Operations Officer Jesus Romero noted that the recovery of the enterprise sector has also been contributing to the company’s sustained growth with revenues from Converge Business growing by 25.5% to nearly P2 billion in the second quarter compared to its year-ago level.
There was across-the-board growth in the enterprise sector covering SMEs, large enterprises, and wholesale, with small and medium companies booking the most robust 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%, 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% 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% higher from the previous year. As a result, the company’s consolidated EBITDA margin reached 57.2% in the first six months of the year, higher than the 55.1% 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. It already has presence in Cebu, Mandaue, Lapu-Lapu, Davao, and Cagayan de Oro, to name a few.
“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 said.