Attributing the growth to increase in subscriber base, Converge ICT Solutions (Converge) said its Consolidated revenues jumped 27.3% year-on-year to P33.7 billion.
The residential business grew by 27.4% year-on-year to P29.5 billion while revenues in the enterprise segment increased by 26.4% YoY to P4.2 billion during the same period. The growth in enterprise business is boosted by the increase in customers from small and medium enterprises (SMEs).
Converge said its EBITDA grew to P19.3 billion with margins expanding to 57.3% level while net income registered at P7.4 billion.
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“With our prudent and disciplined financial management, we were able to achieve and even surpass our financial targets despite increased costs amid our aggressive expansion in key growth areas,” said Maria Grace Uy, co-founder and president, Converge.
Converge also surpassed its 55% target households set for 2023 in terms of expansion after it reached 14.9 million (or 56.2%) at the end of 2022. The company also deployed 8 million total ports by the end of last year.
“We are truly pleased to achieve our goal of reaching the majority of Filipino homes with our world-class pure fiber network,” said Dennis Anthony Uy, co-founder and CEO of Converge. “Now, we hope to serve the broadest number of our people by making connectivity more accessible to the lower income segment of the population.”
Converge has also been leveraging artificial intelligence (AI) into its network operations utilizing it in repairmen dispatching, infrastructure and hardware overheating, and the notification of relevant internal network watchmen.
Surf2Sawa prepaid offering
Following the upgrade of its fiber internet plans in November 2022, the company introduced low-cost plans and prepaid fiber products called Surf2Sawa (S2S), which is now available in over 400 cities and municipalities across the country.
“We are seeing good traction in the uptake of our prepaid fiber with an average month-on-month growth of 20% in total subscribers since we rolled-out last year,” Uy said. “We are able to do this through our partnership with the now micro-entrepreneurs in the communities.”
S2S provides unlimited fiber internet at 25 Mbps speed per household. It is offered in the following packages: P50 for one day, P200 for 7 days, P380 for 15 days, and P700 for 30 days unlimited data.