Fiber broadband and technology provider Converge ICT Solutions Inc. declared its first special cash dividend amounting to P1.3 billion together with the announcement of its new dividend policy.
In its disclosure to the Philippine Stock Exchange, the firm said the dividend policy is aimed at maintaining a dividend payment ratio of 25 percent to 30 percent of its net income based on the latest audited financial statements.
The new policy was approved by Converge’s Board of Directors during their meeting last September 10, 2024.
Converge said it will share part of its profits with the Company’s common equity shareholders - adhering to one of the pillars of the G20/OECD Principles of Corporate Governance 2023’s rights and equitable treatment of shareholders.
“We are really thankful to all shareholders who have believed in our mission to provide world-class connectivity services to the Filipino people.
“We are committed to ensuring that we deliver value to our shareholders as we continue to improve our performance,” said Converge CEO and Co-Founder Dennis Anthony Uy.
Under its dividend policy, the Company’s Board has sole discretion to determine the amount, type, and date of payment of the dividends to the shareholders, taking into account various factors.
These factors include the level of its earnings, cash flow, return on equity and retained earnings; its results for and financial condition at the end of the year in respect of which the dividend is to be paid and expected financial performance;
The projected levels of capital expenditures and other investment programs; restrictions on payments of dividends that may be imposed on the company by any current or future financing arrangements and current or prospective debt service requirements; and such other factors as the Board deems appropriate.
Converge said its Board may, at any time, modify this dividend policy, including the dividend payout ratio.
"With the continued strength of the earnings growth and operating cash flow generation at Converge, we remain well positioned to support the dividend policy going forward.
“The approval of this dividend policy reflects the Company’s commitment to delivering value to shareholders while investing in the continued growth of the business,” said Converge President and Co-Founder Maria Grace Uy.
Following its robust performance in the first half of the year and having considered future cash requirements for expansion and growth, Converge declared a special cash dividend amounting to P1.31 billion or P0.18 per share to all outstanding common shareholders on record as of September 24, 2024.
This is ahead of its 2025 target dividend declaration announced during its initial public offering (IPO) in October 2020.
The special cash dividend is payable on October 10, 2024 to stockholders on record as of September 24, 2024.
This marks the first time the Company has declared dividends since its IPO and ahead of its target 2025 schedule. The Converge Board and management will continue to balance the requirements of all stakeholders.
Converge reported consolidated revenues of P19.5 billion and net income of P5.3 billion in the first half of 2024.