Converge revenues climb 14% yoy to P29.9B, net income up 29% yoy to P8.2B in 9M2024

Leading fiber broadband and technology provider Converge ICT Solutions Inc. (PSE: CNVRG) capped off the third quarter with its net income expanding by 29% year-on-year to P8.2 billion and consolidated revenues going up 14% to P29.9 billion in the first nine months of the year, driven by the consistently strong performance of its residential, enterprise, and wholesale businesses.

The Company’s net additional residential subscribers hit more than 330,000 in the first nine months of the year, with more than 108,000 from the third quarter.

“This sustained upward growth trend is reflective of our effort to make internet access more affordable and inclusive for a broader segment of the market. We are encouraged that our initiatives continue to bear fruit, with our partnerships with tech companies empowering us to strengthen our capabilities and our projects with the government contributing to bridge the digital divide,” said Converge CEO and Co-Founder Dennis Anthony Uy.

FiberX gross adds during the third quarter was the highest of the last 10 quarters with churn rate maintained at around 2%. Surf2Sawa recorded its highest quarterly gross and net adds, showing the continuous demand from the broader underserved market.

Converge wrapped up the period with a total of 2.46 million subscribers, logging 13.2%  growth in residential revenues to Php 25.4 billion.

“This is a result of our customer-centric approach, which emphasizes meeting the needs of our subscribers. For the remainder of the year, our focus is to continue exploring innovative ways to enhance satisfaction across our diverse customer base,” Converge Chief Operations Officer Jesus Romero said.

For its enterprise business, meanwhile, revenues improved by 19% to P4.5 billion, as all segments registered double-digit growth during the period, including the wholesale segment which remained strong with 16.6% growth year-on-year.

Converge Chief Commercial Officer Benjamin Azada mentioned that with the Company’s innovative mindset, Converge intends to support growth by fully leveraging its extensive network to roll out cloud-based technologies and value-added services.

“What sets us apart is, we align ourselves with the future requirements of our customers. Looking ahead, part of our strategy is to complement our core products with more seamless integrations and value-added services so we can retain our customers and potentially tap into new market segments,” said Azada.

Recently, Converge unveiled its collaboration with streaming giant Netflix to offer its newest residential subscription plan, Converge Netflix Bundles.

With the entry-level plan starting from P1,798 monthly, the solution extends customers a holistic entertainment experience, featuring a boosted FiberX plan with specific Netflix subscription tiers.

For hotel and lodging firms, the company also introduced Converge Sky+++, an innovative smart TV solution that includes an in-room entertainment and information hub as well as a high-definition internet protocol television (IPTV).

Converge also made permanent its minimum 100 Mbps speed boost to all its FiberX subscribers, which was initially launched in February this year in celebration of its back-to-back wins at the Ookla® Speedtest Awards. Its basic FiberX 1500 plan now has up to 300 Mbps speeds while FiberX Plan 3500 subscribers now experience speeds of up to 1 Gbps.

“We’re encouraged by the steady rally of the Company. With this, all signs point to us hitting the 12-14% revenue guidance for 2024,” noted Converge President and Co-Founder Grace Y. Uy.