Converge nets P3.9B with 21.5% growth in 1st half of 2022, continues to expand its reach

CEBU CITY -- Converge ICT Solutions Inc. reported a net income of P3.95 billion during the first half of 2022 and a 21.5 percent growth over the same period in 2021 and continues to roll out its high-speed broadband service to more cities and municipalities across the country.

Converge CEO Dennis Anthony Uy said, despite the challenging environment last year, there is an increase demand of broadband service from businesses, particularly the 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,” Uy said.

He bared that Converge installed nearly 650,000 new fiber-to-the-home (FTTH) ports during the second quarter of 2022 that allowed the it to reach more than 13.5 million homes as of June this year, representing 52.1 percent household coverage.

This puts the company on track to reach its target of covering 55 percent 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 percent 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, grew at 37.9 percent from P10.2 billion previously to P14.1 billion in the first six months of 2022, bringing the company’s consolidated revenues to over P16 billion during the period, an increase of 36.3 percent year-on-year, Uy said.

Meanwhile, earnings before interest, tax, depreciation, and amortization (EBITDA) amounted to P9.2 billion in the first half of 2022, 41.5 percent higher from the previous year resulting to the company’s consolidated EBITDA margin reached 57.2 percent in the first six months of the year, higher than the 55.1 percent posted during the same period in 2021.

Converge hopes to deepen its reach in North Luzon, Visayas, and Mindanao eyeing to open in more major cities by the end of 2022.  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. (Photos: Converge)