Converge ICT nets P7.4B in 2022, up 4%

Fiber internet service provider Converge ICT Solutions Inc. saw a single-digit growth in its bottom line last year on the back of increase in subscribers.

In a disclosure to the Philippine Stock Exchange on Thursday, Converge ICT reported a net income of P7.439 billion in 2022, up 4% from P7.158 billion booked in 2021.

The company said it ended last year with 1,877,361 residential subscribers, up 11% increase from December 2021.

Converge ICT also deployed approximately 312,000 new fiber-to-the-home (FTTH) ports during the final quarter of 2022, culminating in an end-of-year port count of approximately 7.9 million.

As of December 31, 2022, the fiber internet provider said its nationwide network reached more than 14.9 million homes, representing a 56.2% nationwide household coverage, already surpassing the company’s target to cover approximately 55% of households in the Philippines by 2023.

The company’s consolidated revenues stood at P33.7 billion, up 27.3% from P26.5 billion year-on-year in line with its 25% to 30% top line guidance for 2022.

Broken down, revenues totaled P29.5 billion, up 27.4% from P23.13 billion on the back of 11% growth in subscriber base.

Enterprise revenues amounted to P4.233 billion, up 26.4% from P3.35 billion year-on-year “mostly from the strong revenue growth in the small and medium enterprise (SME) and wholesale segments.”

Revenues from large enterprise customers, likewise, grew by 14.4% “supported by the reopening of the economy and modular shift of various enterprises to an on-site work arrangement.”

Converge ICT is expecting that strong demand from key expansion areas in the Visayas and Mindanao area, as well demand for new products such as its prepaid fiber broadband service, will result in continuous growth of its residential revenues by around 10% for 2023.

The company also projects demand from enterprise customers to grow by around 25% for this year as the economy reopens and enterprises further undertake a modular shift to an on-site work arrangement.

On the back of continued growth from the residential and enterprise segments, consolidated revenue is expected to grow between 10% to 15% for 2023. — Ted Cordero/RSJ/VBL, GMA Integrated News