Leading fiber internet provider Converge ICT Solutions Inc. (PSE: CNVRG) registered a 30% surge in consolidated revenues to P 24.5 billion during the first nine months of the year compared to the same period last year on the back of continued expansion in its residential subscriber base and very strong performance from its enterprise segment. This lifted the company’s net income to P6.1 billion during the nine-month period, 17% higher from the same period last year.
Supporting the residential subscriber growth is the rollout of fiber ports with Converge deploying more than 411,000 Fiber to the Home (FTTH) ports nationwide in the third quarter of 2022 alone. In total, Converge now has more than 6.7 million fiber ports, making it the largest fiber infrastructure network in the Philippines. This puts Converge’s household coverage at 53%, on track to reach the accelerated target to cover approximately 55% of households in the Philippines by 2023.
“Our fiber digital highway is now running around 600,000 kilometers, reaching our northernmost provinces in the Ilocos and Cordillera regions up to Palawan and the Bicol region, and the major islands in the Visayas and key cities in Mindanao. And it’s not yet over. Our mission is to reach the underserved areas in the country with our world-class fiber infrastructure,” said Converge CEO Dennis Anthony Uy.
At the end of September 2022, Converge reported over 1.84 million residential subscribers, a 16% increase from the same period last year.
Converge achieved an EBITDA (earnings before interests, taxes, depreciation, and amortization) of P14.4 billion in the first nine months of the year, 39% higher from the previous year. As a result, the Company’s consolidated EBITDA margin reached an all-time high of 59.0% during the nine-month period.
“Despite the macroeconomic pressures experienced throughout the year, Converge has continued to achieve solid financial growth. This was driven mainly by the growth in our subscriber base. The revenue of our Residential Business during the first nine months of the year increased by 31% compared to the same period in 2021 while our Enterprise Business achieved 27% year-on-year growth,” said Converge President Maria Grace Uy.
“We’re glad to see businesses continue to make a comeback with our enterprise business, showing a steady upward trend in all segments – small and medium enterprise (SME), large enterprises, and wholesale,” added Converge Chief Operations Officer Jesus Romero.
The SME segment saw a 68% growth in the third quarter of 2022 compared to the same period last year, fuelled by the increasing customer base. Converge saw 77% more SME customers as of September 2022 than the year before, a clear indication that its enterprise broadband products are supporting the recovering SME segment. The Wholesale segment grew by 54%, as the company continues to monetize the capacity of its domestic fiber network and international cables.
