Converge revenues hit P35.4B with strong demand for fiber internet service in 2023

 CEBU CITY -- Converge ICT Solutions Inc. (PSE: CNVRG ended 2023 with consolidated revenues hitting P35.4 billion, up by five percent year-on-year, while net income rose by 22 percent to reach P9 billion with the strong demand for its fiber internet services surging up to 32 percent, the highest in industry at 284,000 subscribers.

“In 2023, we have consistently upheld momentum for our newly launched products Surf2Sawa (S2S) and BIDA Fiber, supported by the consistent growth in our flagship brand FiberX, especially in the fourth quarter,” Converge CEO and Co-Founder Dennis Anthony Uy said.

Uy bared that the company registered net additional residential subscribers of 284,000 for its fiber plans last year, the biggest fiber net adds in the industry during the period, which is 32 percent higher compared to its year-ago level.  

In terms of consolidated net adds, Converge was the only major operator that registered positive growth at 13.4 per cent year-on-year. 

For the fourth quarter alone, both prepaid fiber internet S2S and the low-cost postpaid plan BIDA Fiber registered record net subscriber additions, resulting in a total subscriber base of nearly 175,000 as of end-2023. This well exceeds the company’s target of 120,000 subscribers for these two new products.

The flagship FiberX brand sustained its strong growth with total subscribers now reaching 1.8 million. As a token of appreciation to Converge customers, a promotional speed boost to 300Mbps for the base plan of P1,500 was given to FiberX subscribers recently.

With this strong performance, Converge acquired nearly 80,000 net additional subscribers in the 4^th quarter of 2023 representing 31.8 percent of its total full-year net adds.

“This year, we are looking to enhance the delivery of our full suite of fiber internet services by expanding our sales partner network and employing various strategies to reach our customers more effectively," Converge EVP and Chief Commercial Officer Benjamin Azada said.

Azada added that by end-December 2023, Converge had captured more than 2.1 million subscribers consisting of more than two million postpaid and over 114,000 prepaid subscribers.

Converge bags several recognitions

“At Converge, we hold ourselves to a high standard when it comes to providing exceptional service. We always strive to stay ahead of the game by continuously innovating and presenting new solutions for the changing needs of customers. We want to ensure our customers can always depend on us for an unparalleled and amazing internet experience,” Converge SEVP and Chief Operations Officer Jesus Romero said.

Romero bared that in 2023, Converge bagged several recognitions from the Ookla Speedtest Awards.  The company was crowned the Philippines' Fastest Internet Service Provider of the second half of 2023.   The company staked its dominance in three other categories; Top-Rated Internet in the Philippines, Best Internet Gaming Experience, and Best Internet Video Experience.

Furthermore, the fiber broadband provider’s enterprise business also boasted a robust year, growing from P4.3 billion to P5.1 billion, up by 20 percent year-on-year.  All its enterprise segments saw double-digit growth, led by the small and medium enterprise (SME) segment with 34.9 percent. Similarly, enterprises and corporate saw a 13 percent growth, while the Wholesale segment increased by 14 percent, Romero added.

Converge President and Co-Founder Maria Grace Uy highlighted the company’s ability to yield exceptional results that stems from the foundational commitment to financial discipline, positioning the company as an industry leader in terms of revenues, ROIC, and EBITDA margins in 2023.

“This achievement empowers us to drive our growth further and create more value for all our stakeholders moving forward,” Maria Grace Uy noted.

In terms of profit margins, Converge registered an EBITDA (earnings before interests, taxes, depreciation, and amortization) of P21.5 billion, up 11.2 percent YoY, while its consolidated EBITDA margin ended at 61 percent. With prudent cost management, the company was able to meet its EBITDA targets for 2023, Uy bared.

Uy concluded that at 16.3 percent, the company's return on invested capital (ROIC) remains the highest in the industry and is expected to continuously improve as it builds on its flanker brands. (Photos: Converge)