Converge income rises 11% to P2B as revenues climb

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LISTED fiber internet service provider Converge ICT Solutions, Inc. announced on Thursday an 11% increase in its third-quarter net income to P2.16 billion from P1.95 billion in the same period a year earlier despite economic challenges.

Matthias Vukovich, chief financial office advisor at Converge, also said that the company has revised its capital expenditure guidance for the year to P21-23 billion from the P25 billion set previously.

Total revenues for the third quarter rose 20% to P8.43 billion from P7.05 billion in 2021. This was driven by the revenue growth in the company’s residential and enterprise businesses.

The cost of services for the quarter increased 26% to P3.32 billion from P2.64 billion previously.

“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,” Converge President Maria Grace Y. Uy said during a briefing.

For the nine months that ended Sept. 30, Converge saw its net income grow 17% to P6.11 billion from P5.2 billion in 2021.

Revenues for the period went up 30% to P24.48 billion from P18.83 billion previously, while the cost of services increased 29% to P9.65 billion from P7.46 billion in the same period last year.

“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,” Converge Chief Executive Officer Dennis Anthony H. Uy said.

The company achieved earnings before interests, taxes, depreciation, and amortization (EBITDA) of P14.4 billion in the first nine months of the year, 39% higher than 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,” Converge noted. — Arjay L. Balinbin