MANILA - Converge ICT said its net income after tax almost tripled, rising to P1.55 billion in the first quarter of this year from P574 million in the same period last year amid strong subscriber growth.
Residential subscribers grew to almost 1.18 million during the quarter from 615,466 last year, the company said.
The telco headed by Dennis Anthony Uy said revenues from its residential business more than doubled to P4.8 billion in the first three months of 2021, from P2.29 billion in the first quarter of 2020. Revenues from Converge’s enterprise business meanwhile grew at a slower 2.2 percent.
“Reflecting the high demand for fixed broadband connectivity services in the Philippines, we estimate that 95 percent of our new subscribers in 1Q2021 were first time fixed broadband users,” the company said.
Converge said its finances also benefited from the enactment of the Corporate Recovery and Tax Incentives for Enterprises or CREATE law, which reduced its effective corporate income tax rate to 21 percent.
The company said its average download speed improved to 42.43 Mbps in the first quarter compared to the average 28.88 Mbps in the previous quarter, according to quarterly speed test data from Ookla.
Converge said it continued to expand its nationwide fiber network, and extended its services this quarter to provinces including Ilocos Sur, Pangasinan, Nueva Vizcaya, Nueva Ecija, Albay, and Batangas, allowing it to reach a total of 352 cities and municipalities as of end-March.
The company is also expanding to Visayas and Mindanao.
“The first phase of our ambitious VisMin backbone expansion project aims to complete seven inter-island subsea cable links, to allow Converge to complete a nationwide backbone stretching from the northern tip of Luzon to the Philippines ’ main southern island of Mindanao.
Converge closed at P18.78 per share, up 1.51 percent at the close of Monday’s trading.