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 4th 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)