Converge expansion drives 29% net income increase


Uy-led Converge Information and Communications Technology Solutions Inc. reported a 29-percent jump in net income in the first nine months of the year to P8.2 billion from the P6.4 billion registered in the same period last year on the back of a strong performance in all its businesses.

In a statement on Wednesday, Nov. 13, Converge said consolidated revenues also increased by 14.1 percent to P29.9 billion from P26.2 billion year-on-year. Of the total, the residential component accounted for a P25.4 billion share, while its enterprise business contributed P4.5 billion.

Both residential and enterprise businesses registered growth rates of 13.2 percent and 19 percent, respectively, as its customer base continued to expand to 2.46 million for residential and 60,000 enterprise customers during the period.

In addition, earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 20.5 percent to P18.3 billion, representing an EBITDA margin of 61 percent.

Converge said it was able to maintain a strong balance sheet position, having been able to slash its net debt position by 39 percent to P14.1 billion as of end-September 2024 from P23.1 billion registered in end-September of 2023.

“This sustained upward growth trend is reflective of our effort to make internet access more affordable and inclusive for a broader segment of the market. We are encouraged that our initiatives continue to bear fruit, with our partnerships with tech companies empowering us to strengthen our capabilities and our projects with the government contributing to bridge the digital divide,” Converge Chief Executive Officer Dennis Anthony Uy said, adding that the company was confident of hitting its target revenue growth rate of 12 to 14 percent for full year 2024.

For his part, Converge Chief Commercial Officer Benjamin Azada said that the company intends to support growth by fully leveraging its extensive network to roll out cloud-based technologies and value-added services.

“What sets us apart is, we align ourselves with the future requirements of our customers. Looking ahead, part of our strategy is to complement our core products with more seamless integrations and value-added services so we can retain our customers and potentially tap into new market segments,” he added.