Converge 2023 net surges 22.3% to P9B

CONVERGE ICT Solutions Inc. on Monday said that net income after tax grew by 22.3 percent last year, to P9.1 billion from P7.43 billion in 2022, on the back of strong demand for its fiber internet services.

In a statement, the fiber broadband provider said consolidated revenues reached P35.4 billion in 2023, up 5 percent year on year.

Converge registered 284,000 net additional residential subscribers for its fiber plans last year, which it claimed to be the biggest in the industry during the period and 32 percent higher than the year-earlier level.

In terms of consolidated net additional subscribers, Converge said it was the only major operator to have registered positive growth, at 13.4 percent year on year.

“In 2023, we have consistently upheld momentum for our newly launched products Surf2Sawa (S2S) and BIDA Fiber, supported by the consistent growth in our flagship brand FiberX, especially in the fourth quarter,” said Dennis Anthony Uy, Converge chief executive and co-founder.

For the fourth quarter alone, both prepaid fiber internet S2S and the lowcost postpaid plan BIDA Fiber registered record net additions, resulting in a total subscriber base of nearly 175,000 as of end2023, exceeding the company’s target of 120,000 subscribers for the two products.

The flagship FiberX brand sustained its strong growth, with total subscribers 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.

Converge acquired nearly 80,000 net additional subscribers in the fourth quarter of last year, representing 31.8 percent of its total full-year net additions.

“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,” said Benjamin Azada, Converge executive vice president and chief commercial officer.

By end-December 2023, Converge said it had captured more than 2.1 million subscribers, more than 2 million of which were postpaid and some 114,000 were prepaid.

“At Converge… [we] always strive to stay ahead of the game by continuously innovating and presenting new solutions for the changing needs of customers,” said Jesus Romero, Converge senior executive vice president and chief operations officer.

“We want to ensure our customers can always depend on us for an unparalleled and amazing internet experience,” he added.

The fiber broadband provider’s enterprise business also posted a robust year, growing from P4.3 billion to P5.1 billion, up 20 percent year on year.

All enterprise segments saw double-digit growth, led by the small and medium enterprise (SME) category, which grew by 34.9 percent. Enterprises and corporate improved by 13 percent while the wholesale segment notched a 14-percent increase.

On Monday, Converge shares rose by 26 centavos, or 3.02 percent, to close at P8.86 each.