Fixed broadband operator Converge ICT Solutions Inc. (Converge) reported solid performance in the first half of 2024, driven by continued demand for its FiberX product and subscriber growth.
As of June 2024, Converge’s total subscriber base reached over 2.3 million, comprising more than 2.1 million postpaid and 192,519 prepaid users. The net addition of 223,751 subscribers in 1H2024 highlights the ongoing interest in fixed broadband services.
“What we’re seeing is a changing of the guard in the industry and this comes as no surprise given our hard-earned investments into our fiber network,” said Grace Uy, president and co-founder of Converge. “In the end, service excellence through innovation and technology ruled the day.”
Consolidated revenues for the first half of 2024 (1H2024) grew by 12.4% year-on-year to P19.5 billion, up from P17.4 billion in the same period last year. The residential business accounted for P16.6 billion of this revenue, reflecting an 11.8% growth. Some of its newly introduced products saw significant demand, contributing to a 5% share of residential revenue and 13% of the residential subscriber base.
Enterprise revenue also showed strong growth, increasing by 16% to P2.9 billion, with the small and medium enterprise (SME) subsegment growing at 29.5%.
Converge’s financial performance remained solid, with EBITDA increasing by 18.3% to P11.9 billion, leading to an improved EBITDA margin of 60.9%. The company’s prudent cost management and efficient operations were evident in its reduced net debt position, which dropped to P15.8 billion by June 2024.
Net income after tax rose by 23.6%, reaching P5.3 billion, resulting in a net income margin of 27.1%, up from 24.7% in 1H2023.