Converge net income at P5.3B in H1 2024

Fiber internet provider Converge ICT Solutions Inc. posted double-digit profit growth in the first half of 2024 amid the rise in its subscriber base, bringing leverage across its residential and enterprise broadband businesses.

In a disclosure to the Philippine Stock Exchange on Wednesday, Converge reported a net income of P5.3 billion in the January to June 2024 period, up 23.6% from P4.28 billion a year earlier.

The double-digit bottom line growth was on the back of the 12.4% increase in consolidated revenues to P19.5 billion from P17.4 billion in the same period last year.

Broken down, revenues from residential businesses stood at P16.6 billion, up 11.8%, while enterprise revenues amounted to P2.9 billion, up 16%.

Converge’s strong top-line performance was supported by the 19.4% rise in its subscriber base, reaching 2.35 million as of end-June 2024 from 1.97 million in the same period in 2023.

“We see the demand for fiber broadband to remain unhampered, allowing us to continue reaching more and more Filipinos across different income levels with our flagship FiberX, low-cost postpaid BIDA Fiber, and prepaid Surf2Sawa offerings,” said Converge president and co-founder Maria Grace Uy.

“With our recent commercial arrangement with Sky Cable Corp., we see these numbers as just the starting point. We expect the collaboration to bear fruit in terms of revenue growth, as we are bound to see increased port utilization and further monetize our network,” said Converge CEO and co-founder Dennis Anthony Uy.

Converge has also updated its full-year targets.

From a 7% to 8% revenue growth goal this year, the company upgraded its top-line growth target to a 12% to 14% range.

Total capital expenditures amounted to P4.7 billion as of June 2024. —VBL, GMA Integrated News