Converge ICT Solutions Inc. (PSE: CNVRG), the Philippines’ premier pure-play high-speed fixed broadband provider, has reported a significant upswing in its performance for the third quarter of 2023.
The company reached a milestone with 2,048,286 subscribers, boasting a remarkable net addition of 170,925 for the first nine months of the year.
Of these, the third quarter alone contributed 78,623, with new offerings FiberX, Bida Fiber, and Surf2Sawa displaying strong uptake.
The residential sector, which accounts for 85.6% of the company’s revenue, experienced a 5.2% growth, taking the revenue to P22.5Bn. This is part of a larger 7.2% increase in consolidated revenue for the nine-month period, amounting to P26.2Bn.
Converge attributes this growth to its diverse product offerings and strategic price positioning, catering to various income segments, which they believe will mitigate subscriber churn in the face of economic headwinds.
With the third quarter seeing the highest gross adds in two years, Converge is maintaining its position as the fastest-growing broadband provider in the country.
This surge is underpinned by the strength of its enterprise sector, which saw a 21.1% increase in revenue, with the SME segment alone growing by 37.9%.
To combat the churn due to the current economic conditions, Converge has implemented strategic churn management techniques, including the offering of value-added services and leveraging AI-driven customer analytics to enhance the customer experience.
The EBITDA remained solid with a 4.9% increase to P15.1Bn, and the company continued to enjoy a leading return on invested capital (ROIC) of 15.4%.
The balance sheet remains strong, with a decrease in net debt and a robust debt service coverage ratio, illustrating Converge’s prudent capital management and commitment to long-term growth.
As Converge continues to expand its reach and enhance service quality, the company looks forward to the completion of the Bifrost and SEA-H2X subsea cable systems, which will further bolster its enterprise business and solidify its position as a leader in the digital field.
Expanding the Company’s Wholesale Footprint in the Region through Converge Singapore
Converge Singapore, the international unit of Converge, is now operational and fully geared up to service enterprise customers in the region.
Through its global subsidiary, Converge offers a variety of international connectivity services, such as Ethernet-International Private Line service, Dedicated Internet Access service, and submarine cable capacities, among others.
The Company expects both of its subsea cable systems, Bifrost Cable System and the South-East Asia Hainan-Hong Kong Express Cable System (“SEA-H2X”), to be completed and operational by the latter half of 2024.
These two subsea cable systems and the Company’s Singaporean office are expected to open a lot of growth opportunities for the Company’s wholesale business as supply for international bandwidth remains thin.
To this end, Converge recently onboarded technology sales strategist Victor Koh to lead Converge Singapore as General Manager and Head of International and Wholesale Sales.
With over 30 years of experience in the information technology and telecommunication industry, he will be responsible for managing Converge Singapore’s operations while driving revenue growth by extending connectivity services and fiber optic capacity to international markets.
BusinessNewsAsia