Fueled by demand for its fiber internet services, fiber broadband and technology provider Converge ICT Solutions, Inc. ended 2023 with a positive bottomline of PhP9-billion after deducting expenses and income tax from consolidated revenues of PhP35.4-billion. Net income rose 5% while consolidated revenues grew 22% compared to year-ago levels.
Of the total revenues, PhP30-billion were sourced from residential customers while the remaining PhP5-billion came from enterprise segment. Playing an important role in registering hike in revenues, net additional residential subscribers for fiber plans increased 32% to reach 284,000, the biggest fiber net adds in the industry for the period.
The performance of the newly launched product Surf2Sawa (S2S) and the low-cost postpaid plan BIDA Fiber is fast gaining momentum, registering record net subscriber additions that boost total subscriber base to nearly 175,000 as of end-2023. This exceeds company’s target of 120,000 subscribers for these products.
“With BIDA and S2S, we are finally realizing our dream of bringing quality internet access to unserved and underserved communities in the Philippines,” said Converge CEO and co-founder Dennis Anthony Uy.
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 performance, Converge acquired nearly 80,000 net additional subscribers in Q4 2023, representing 31.8% 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.
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 bagged several recognitions from the Ookla Speedtest Awards, where it was crowned the Philippines’ Fastest Internet Service Provider of the second half of 2023. The fiber broadband provider delivers 457.56Mbps top download speed and 448.15 top upload speed. Additionally, the company staked its dominance in three other categories — Top-Rated Internet in the Philippines, Best Internet Gaming Experience, and Best Internet Video Experience.
“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,” said SEVP and chief operations officer Jesus Romero.
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% year-on-year.
All its enterprise segments saw double-digit growth, led by the small and medium enterprises (SMEs) segment with 34.9%. Similarly, enterprises and corporate saw a 13% growth, while the wholesale segment increased by 14%.
“Our ability to yield exceptional results stems from our foundational commitment to financial discipline, positioning us 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,” said Converge president and co-founder Maria Grace Uy.
In terms of profit margins, Converge registered an EBITDA (earnings before interests, taxes, depreciation, and amortization) of P21.5-billion, up 11.2% YoY, while its consolidated EBITDA margin ended at 61%. With prudent cost management, the company was able to meet its EBITDA targets for 2023.
At 16.3%, 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.
Converge also provides other value-added services for its customers. Uy said they introduced BlastTV as a free add-on to FiberX, S2S and BIDA Fiber subscribers, and offers Vision which provides customers with access to a broader selection of local and international television channels.
