Converge says fiber a 'necessity' as net income hits P1.97 billion in Q1

Jessica Fenol, ABS-CBN News

Posted at May 16 2022 12:07 PM

A Converge Business center in Calapan. Handout
A Converge Business center in Calapan. Handout

MANILA - Converge IT Solutions Inc on Monday said its net income reached almost P2 billion in the first 3 months of the year as Filipinos considered fiber connectivity a necessity despite rising inflation. 

Net income reached P1.973 billion for the first quarter, up 27.2 percent compared to the P1.549 billion in the same period last year, Converge said in a disclosure to the stock exchange.

Consolidated revenues grew 39.7 percent to P7.7 billion from P5.5 billion in the same period, it said. 

The pure fiber provider said it ended the quarter with 1,802,202 residential subscribers, which is 52.5 percent higher compared to March in 2021.

Filipinos are also likely to keep their home broadband despite surging inflation due to the pandemic-driven digital shift, Converge Chief Strategy Officer Benjamin Azada said in a briefing.

“We still believe that given the digital shift that happened over the last 2 years from COVID, WFH, I think people’s behaviors will not go back. If there’s anything that they’re going to cut, it’s probably not fixed broadband at home,” Azada said.

“Probably they will cut from other things because we see our service as a utility and a necessity not as a luxury,” he added.

It said it deployed 643,528 new fiber-to-the-home (FTTH) ports during the quarter. As of March, its network reached more than 12.2 million homes or 47.3 percent household coverage.

Converge founder Dennis Anthony Uy said the company is "on track" to meet its goal to cover 55 percent of households in the country by 2023.

Converge recently partnered with China Mobile International Limited, China Unicom Global and PPTEL SEA H2X Sdn. Bhd for the construction and operation of the South East Asia Hainan - Hong Kong Express Cable System.

The submarine cable system will connect Hong Kong SAR China, Hainan China, Philippines, Thailand, East Malaysia and Singapore with options to extend to Vietnam, Cambodia, West Malaysia and Indonesia, it said.

Its other investment and entry to the Philippine Basketball Association (PBA) after acquiring Alaska Milk Corp's basketball team, will also help in making Converge a household brand, Azada said.

Converge's FiberXers will play in the 47th season of the PBA.

For 2022, Converge said it has allotted P26 to P28 billion for capital expenditures.


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