Converge enterprise business continuing strong performance

Consolidated revenues growth at 3.1%;
Strong EBITDA margin of 59.1%

Customer service and network performance metrics
showed further improvements QoQ

 

1Q2026 Key Highlights

• Converge registered consolidated revenues of P22.4Bn for 1H2026, higher by 3.1% from 1H2025
• 1H2026 Residential revenues grew to P18.5Bn
• Enterprise revenues reached P3.9Bn in 1H2026, representing a 15.1% growth rate coming from new customer wins
• EBITDA reached P13.3Bn with margin ending at 59.1%, maintaining cost discipline across business segments
• 1H2026 net income after tax reached P5.5Bn
• ROIC reached 14.9% for 1H2026
• Improvements in service line and outage repair from 1Q2026

MANILA, Philippines, August 13, 2026

Consolidated revenue uplifted by enterprise segment

Resilient revenue growth despite headwinds

Converge Information and Communications Technology Solutions, Inc. (PSE: CNVRG) (“Converge” or the “Company”) consolidated revenues rose by 3.1% to P22.4Bn in 1H2026 from P21.8Bn during the first half of 2025.

Residential business grew to P18.5Bn during the six-month period with total subscribers ending at 3.09 million by end-June this year, despite inflationary pressures during the second quarter. On the other hand, total enterprise revenues grew by 15.1% to P3.9Bn for the first six months of 2026 from P3.4Bn during the same period last year. The Small and Medium Enterprise (SME) and Enterprise and Large Corporate subsegments emerged with strong double digit revenue growth rates of 15.7% and 14.8%, respectively, amid expansion in customer base.

Strong EBITDA margin and net income margin underscore disciplined cost control

EBITDA sustained a strong growth trajectory with industry-leading margins

The Company’s EBITDA reached P13.3Bn in 1H2026, leading to a consolidated EBITDA margin of 59.1% for the first six months of the year, well within the Company’s full year guidance.

Net income after tax reached P5.5Bn in 1H2026, resulting in a net income margin of 24.4%, These operational and financial results underscore the resilience of the Company’s core operations and reinforce commitment to delivering consistent, long-term value.

Strong ROIC and Balance Sheet

The Company maintained its industry-leading Return on Invested Capital (ROIC) at 14.9%. This performance is a result of the Company’s disciplined approach in deploying capital to expand its fiber network and improve its overall services.

Converge has been able to maintain its strong balance sheet and cash flows with ample liquidity and gearing comfortably within bank covenants. The Company’s net debt position (as measured by total financial debt less cash and cash equivalents and short term cash placements) remains stable at P15.6Bn as of June 30, 2026. The Company’s debt service coverage ratio (DSCR) was 1.5x (next fiscal year debt service requirements) and 3.5x (LTM debt service requirements), the net debt-to-total equity was at 0.2x, and gross debt-total equity was at 0.4x—well within the required financial covenants from its debt facilities.

Total cash CAPEX for 1H2026 amounted to P5.7Bn.

Converge’s customer services metrics further improved quarter-on-quarter with broadened manpower complement

Driving sustainable growth remains intrinsically linked to elevating end-to-end subscriber experience and operational execution. During the quarter, the Company strengthened service delivery by aggressively expanding field technical capacity. This translated into quantifiable improvements across our core service metrics during the quarter.

Converge has seen noticeable improvements in customer experience metrics compared to 1Q2026, such as faster resolution rates of service line repairs within one day and five days by 8% and 2%, respectively, and lower mean time to repair outages by more than 60%. Average ticket time to resolve remained near six-quarter low.

Converge leads PH in broadband speed, network quality in DICT Oplan Bantay Signal 2Q2026 Report; received top honors in the Speedtest Intelligence report of Ookla®

Converge delivered the country's strongest fixed broadband network performance in the second quarter of the year, posting the fastest download speed, best in class network quality with symmetric upload speed and the lowest latency in the country, according to the latest Oplan Bantay Signal report of the Department of Information and Communications Technology (DICT).

The report showed that Converge achieved the lowest average latency of 5 milliseconds during the second quarter. Latency is a measure of delay in a network, so a lower number means shorter time for the data to travel through your network. A 5 ms latency means an instantaneous experience for users of the network.

Meanwhile, Converge posted an industry-leading 158 megabits per second (Mbps) download speed last month. The company also recorded an 84% decline in customer complaints from January to June, reflecting sustained improvements in network performance and customer experience. The Company's latest network performance complements its broader efforts to expand digital connectivity nationwide.

"Converge has always been focused on delivering the best quality service to its customers. Our upload speed reached a six-month high, while our network delivered best-in-class latency, reflecting the continuous investments we have made to improve customer experience," said Dennis Anthony Uy, Converge CEO and Co-Founder.

The DICT's Oplan Bantay Signal is a nationwide monitoring initiative that evaluates the quality and performance of telecommunications networks through extensive speed testing and network assessments. The program measures key indicators—including download speed, upload speed, latency, and service reliability—to help ensure that consumers receive quality broadband services across the country.

On top of the distinction from the DICT report, Converge also received accolades from Ookla®. Based on its consumer-initiated tests conducted during the period, Converge dominated all major fixed-broadband metrics, earning the “Best Internet”, “Fastest Internet”, and “Best Fixed Latency” recognitions for January to June 2026.

These recognitions are testament to the Company’s continued focus on delivering exceptional value to our customers.

Converge elects former Senior Associate Justice Perlas-Bernabe as first female Board Chair, veteran leader De Jesus stays on as Independent Director

The Company’s Board of Directors has elected former Senior Associate Justice (SAJ) Estela Perlas-Bernabe as its new chairperson during its organizational Board meeting following the company’s Annual Stockholders’ Meeting (ASM) on May 29, 2026.

“I am deeply honored to serve as Chairperson of the Board of Converge. In the past three years, I have witnessed the company’s adherence to the highest standards of corporate governance and seen its subscriber base rise to over three million in a highly competitive industry. I am truly excited to lead the Board as the fiber internet provider evolves into a future-forward technology company,” said SAJ Perlas-Bernabe.

SAJ Perlas-Bernabe succeeds veteran business leader and former Secretary of the Department of Public Works and Highways (DPWH) and Department of Transportation and Communications (DOTC), now Department of Transportation, Jose De Jesus who will stay on as Converge Independent Director. De Jesus served as Chairman of the Converge Board since it was listed at the Philippine Stock Exchange (PSE) in October 2020.

“It is with heartfelt delight that I pass the baton to Justice Perlas-Bernabe who is a respected jurist celebrated for her unshakeable integrity. Being the first female chairperson of Converge, she ushers in a new era of fairness and accountability into the Board,” said De Jesus who led Converge to its Five Arrow Award, the highest distinction in corporate governance handed by the Institute of Corporate Directors (ICD).

Converge tempering FY2026 guidance given macroeconomic headwinds

While persistent inflationary pressures since 2Q2026 present near-term macroeconomic headwinds, Converge remains operationally resilient. We are recalibrating our full-year 2026 guidance, projecting revenue growth in the mid-single-digit range of 4–6%. Through sustained discipline in cost management, we expect to defend our strong EBITDA margins at 58–59%. Furthermore, by optimizing our capital expenditure down to ₱17–20 billion, we remain fully committed to preserving our target ROIC of 15.5–16.5%.

 

This press release may contain forward looking statements and information that are, by their nature, subject to significant risks, uncertainties, and assumptions. Many factors could make or cause the actual results, performance or achievements to be materially different from those expressed or implied in this release. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein.

For questions, please contact:

Owen Kieffer Ocampo
Vice President – Head of Investor Relations
Email: investor.relations@convergeict.com

Jay-Anne Encarnado
Vice President – Head of Corporate Communications and Public Relations
Email: corpcomm@convergeict.com