Converge doubles net income to P7.2B in 2021 from P3.4B in 2020

Converge doubles net income to P7.2B in 2021 from P3.4B in 2020

MINERVA BC NEWMAN

CEBU CITY -- Converge ICT Solutions Inc. (Converge), a leading fiber internet provider in the Philippines bared on its March 17 virtual 4^th quarter financial briefing that it has more than doubled its net income to P7.2 billion in 2021 from P3.4 billion in 2020, sustaining its growth with total consolidated revenues reaching P26.5 billion last year which is 69.2 percent higher than the P15.7 billion revenues posted in 2020.

Converge CEO and Co-Founder Dennis Anthony Uy said, Converge’s entry into Visayas and Mindanao contributed to our aggressive port rollout, and continued turn-in of subscribers in Luzon and existing markets pushed up our residential business revenues up by 83.2 percent.

“Our network has now passed 10.9 million homes and we’re covering around 42.5 percent of Philippine households. We’re confident of meeting our accelerated goal of reaching 55 percent of all households by 2023,” Uy added.

Converge President and Co-Founder Maria Grace Uy on the other hand revealed that the company has rolled out more than 650,000 ports in the fourth quarter that brought its total port deployment to 2.4 million in 2021; with its quarterly net adds of 115,000 bringing its total residential subscriber count to 1.7 million by year-end.

“We sustained our industry-leading trifecta with another record financial performance in 2021,” Grace Uy said, referring to the company’s 69.2 percent year-on-year revenue growth, 55.9 percent EBITDA margin, and 20.9 percent return on invested capital (ROIC) which is much higher than the average of broadband players in the Asia-Pacific region, she added.

According to Uy that Converge also maintained its strong credit profile as reflected in the PRS AAA credit rating with Stable Outlook given by PhilRatings for its upcoming maiden bond issue. The proceeds of the bond issue will be used to partly fund its capital outlay requirements this year.

Converge also announced during the briefing that it has earmarked higher capital expenditures of P26 billion to P28 billion this year, with bulk allotted to fund the expansion of its access network nationwide and further extension of its fiber backbone.

The company spent P25 billion for capex last year and as of end-2021, the Converge fiber backbone reached 103,000 kilometers passing through 495 cities and municipalities across the country.