Leading fiber internet provider Converge ICT Solutions Inc. has started deploying collection boxes for electronic waste in three business centers in Pampanga province as it launches its #CountdownToZeroWaste campaign in its hometown Angeles City. With this campaign, Converge hopes to make headway with its sustainability commitment to have zero output to landfill by 2030 by […]Learn More
Converge doubles net income in 2021, books P7.2 billionBy: Converge Admin | 18 Mar 2022
Leading fiber internet provider Converge ICT Solutions Inc. (PSE: CNVRG) more than doubled its net income to P7.2 billion in 2021 from P3.4 billion the previous year, growing by 111% on the back of record number of port rollouts, continued strong expansion of its residential subscriber base, and recovery of the enterprise business.
Converge reported on Thursday that it sustained its robust growth with total consolidated revenues reaching P26.5 billion last year, 69.2% higher than the P15.7 billion revenues posted in 2020.
“Our entry into Visayas and Mindanao contributed to our aggressive port rollout, and continued turn-in of subscribers in Luzon and existing markets pushed up our residential business revenues up by 83.2%. Our network has now passed 10.9 million homes and we’re covering around 42.5% of Philippine households. We’re confident of meeting our accelerated goal of reaching 55% of all households by 2023,” said Dennis Anthony Uy, CEO and Co-Founder of Converge.
The fiber internet company rolled out more than 650,000 ports in the fourth quarter, bringing its total port deployment to 2.4 million in 2021. It also reported quarterly net adds of 115,000 bringing its total residential subscriber count to 1.7 million by year-end, hitting the high end of management guidance.
“We sustained our industry-leading trifecta with another record financial performance in 2021,” said Converge President and Co-Founder Maria Grace Y. Uy, referring to the company’s 69.2% year-on-year revenue growth, 55.9% EBITDA margin, and 20.9% return on invested capital (ROIC), much higher than the average of broadband players in the Asia-Pacific region.
Uy noted that Converge also maintained its strong credit profile as reflected in the PRS AAA credit rating with Stable Outlook given by PhilRatings for its upcoming maiden bond issue. The proceeds of the bond issue will be used to partly fund its capital outlay requirements this year.
Converge announced that it has earmarked higher capital expenditures of P26 billion to P28 billion this year, with bulk allotted to fund the expansion of its access network nationwide and further extension of its fiber backbone. The company spent P25 billion for capex last year.
As of end-2021, the Converge fiber backbone reached 103,000 kilometers, passing through 495 cities and municipalities across the country.
About Converge ICT Solutions, Inc.
Converge Information and Communications Technology Solutions, Inc. (PSE:CNVRG) is the leading pure fiber data network and internet service provider in the country. It is the first to run a pure end-to-end fiber internet network, providing Filipinos simple, fast, and reliable internet connection. Converge is ISO 9001 and CE2.0 Certified.
Leading fiber broadband provider Converge ICT Solutions Inc. has hit its two million fiber port rollout target for 2022, indicating high availability of its service to meet the country’s increasing demand for high-speed connectivity. As of December 31, 2022, Converge has already deployed more than two million fiber ports in Luzon, Visayas, and Mindanao, further […]Learn More
Converge CEO Dennis Anthony Uy stresses value of education, donates 3-hectare land to alma mater in Pampanga
Giving back to the institution that honed him to become the successful businessman he is today, Converge ICT Solutions Inc. CEO and Co-Founder Dennis Anthony Uy has donated three hectares of land to his alma mater Chevalier School in Angeles City, Pampanga, underscoring the value of education just like what his late father used to […]Learn More