Converge hikes revenue target as 6-month profit jumps by 23%

August 16, 2024 | 12:00am

MANILA, Philippines — Broadband specialist Converge ICT Solutions Inc. has raised its growth forecast for the year with internet demand going up, expecting revenue to climb by as much as 14 percent.

Converge reported that its profit jumped by 23 percent to P5.29 billion in the first half, from P4.29 billion a year ago, leading the broadband industry on growth numbers.

Revenue increased by 12 percent to P19.52 billion, brought about by the expansion of its subscriber base in both postpaid and prepaid segments.

Converge president and co-founder Maria Grace Uy said the company is now projecting a 12 to 14 percent growth in revenue for 2024. Initially, Converge was eyeing to grow its earnings between seven and eight percent only.

Converge chief finance officer Robert Yu said the internet service provider jacked up its revenue target on confidence that it can sustain its growth momentum in the second semester. He said the company has the right products to offer to underserved sectors of the market.

Based on its financial report, Converge ended June with a subscriber base of 2.35 million, adding around 380,000 customers over the past 12 months.

Likewise, Converge is starting to reap the benefits of betting big on low-cost internet, sourcing 13 percent of its subscriber base from its retail products Surf2Sawa and BIDA Fiber.

Further, Converge’s enterprise business boosted its revenues by 16 percent to P2.88 billion, from P2.49 billion, lifted by its aggression to penetrate the cloud and cybersecurity markets as part of its transition to graduate to a tech innovator, from just a broadband provider.

Recently, the provider has launched a low-cost offering for micro, small and medium enterprises (MSMEs) called Microbiz Max. Moreover, it has introduced its business continuity solution for MSMEs named Disaster Recovery as a Service.

Converge poured in P4.7 billion in capital expenditures between January and June. It expects more spending in the second half to cover progress payments for the completion of its subsea cables.