Uy-led fiber broadband and technology provider Converge ICT Solutions Inc. saw its net income grow by 18 percent in the first quarter of the year as its enterprise segment, which includes its offering of Starlink, continues to attract businesses and government agencies.

In a disclosure to the Philippine Stock Exchange (PSE) on Thursday, May 15, Converge reported that its net income reached ₱3.02 billion by the end of March, up from ₱2.55 billion in the first three months of 2024.

Converge said the enterprise segment was among the key drivers of this increase, posting a 23-percent surge in revenues—from ₱1.37 billion to ₱1.69 billion.

The enterprise segment notched double-digit gains across its units, including a 54-percent increase in wholesale revenues from new customers and services.

Without disclosing the number of units sold or its overall reach, Converge said satellite internet provider Starlink, operated by Elon Musk’s SpaceX, contributed to the segment’s growth.

Converge, an authorized satellite broadband reseller of Starlink, announced early this year that it has expanded into end-to-end solutions such as installation, network management, and maintenance.

Specifically, the company is targeting businesses and government agencies in far-flung areas, covering agriculture, retail, mining, tourism, and fisheries, among others.

“We’re among the few in the Philippines authorized by Starlink to resell its services—an acknowledgment of our deep market expertise and commitment to meeting the evolving needs of both enterprise and government clients,” said Converge Chief Executive Officer (CEO) Dennis Anthony Uy.

In a press briefing, Converge Chief Commercial Officer Benjamin Azada said the Starlink service essentially acts as a “backup connection” for clients in areas with limited fiber connection.

Also earlier this year, the company announced that it has partnered with Ribbon Communications Inc. to help improve internet services in the country.

Uy said the data transmission technology of the Nasdaq-listed company will soon be integrated into the Converge fiber network, boosting network capacity to 1.2 terabits per second (Tbps).

First launched in North and Central Luzon, the service is set to be implemented nationwide.

“We’re bringing solutions that empower industries to scale and innovate, even in the most remote areas,” said Uy.

Strong earnings in the first quarter were also fueled by growth in the residential segment, which posted a 12-percent increase to ₱9.11 billion from ₱8.17 billion.

Overall, consolidated revenues rose 13 percent, reaching ₱10.8 billion compared to ₱9.54 billion in the previous year.

The company’s first-quarter gains pushed earnings before interest, taxes, depreciation, and amortization (EBITDA) to ₱6.69 billion, up 15 percent from ₱5.83 billion.

Further, the telco maintained its industry-leading return on invested capital (ROIC) at 18.4 percent.

Fiber port utilization stood at 34.4 percent as of the end of March, stronger than 26.9 percent in the same period last year.

Approximately 5.4 million fiber ports remain available for service, signaling the company’s capacity to capitalize on industry growth in existing service areas.

Converge now serves more than 2.7 million residential customers, with its BIDA Fiber and Surf2Sawa services remaining popular.

Capital expenditures (capex) during the period stood at ₱2.6 billion, covering expansion projects including the rollout of new fiber ports.