Converge ICT Solutions Inc.: Sustaining Growth and Expanding Horizons

In a fast-paced world increasingly reliant on connectivity, Converge ICT Solutions Inc. stands out as a leading fiber broadband and technology provider, making waves with its sustained growth and innovative product offerings. The first half of the year witnessed remarkable achievements for the company, marked by an impressive 8% revenue growth, reaching P17.4 billion. This success story revolves around two key pillars: its expanding residential subscriber base and a robust enterprise business, particularly catering to small and medium enterprises (SMEs).

Residential Subscriber Base: A Thriving Journey

The cornerstone of Converge's success is undoubtedly its residential subscriber base. During the first six months, the company welcomed an impressive 92,000 net subscriber additions in this segment, signifying a 5% growth compared to the previous year. Notably, the second quarter alone saw 49,000 net additions, showcasing the consistent appeal of Converge's offerings.

A significant development is the explosive growth of prepaid fiber internet subscribers, reaching over 54,000 by the end of June, nearly doubling from the level recorded in March 2023. This remarkable surge consolidates Converge's residential subscriber base, which now stands at a formidable 1.97 million.

Innovation Fuels Expansion: Surf2Sawa and Bida Fiber

Driving this remarkable growth is Converge's commitment to innovation, exemplified by its latest product offerings. Surf2Sawa, the prepaid fiber offering, has emerged as a boon for households seeking affordable yet flexible connectivity. With top-up options starting from as low as P50 per day to P700 for a 30-day unlimited connectivity plan, Surf2Sawa caters to a variety of user needs. Capable of connecting up to six devices at an average speed of 25 Mbps, this product presents a compelling solution for a diverse range of users.

Another feather in Converge's cap is the introduction of Bida Fiber, a more affordable postpaid broadband offering tailored to budget-conscious households. Priced at P888 per month, subscribers enjoy connectivity for up to six devices, boasting an average speed of 35 Mbps, along with the promise of quality and unlimited connection.

A Strategy for Every Home: The Full Product Portfolio

Converge's strategic approach focuses on inclusivity, ensuring that every household finds an appropriate plan that aligns with their preferences and budget. The recent additions of Surf2Sawa and Bida Fiber form part of Converge's full product portfolio, catering to various economic classes. This strategy targets value-conscious customers who may not yet be connected through fiber broadband, offering them a seamless transition from mobile or fixed wireless connectivity.

Enterprise Excellence: Fueling Growth Across Sectors

Converge's success extends beyond residential subscribers, with its enterprise business delivering outstanding results. In the first half of 2023, the SME segment emerged as a trailblazer, achieving a remarkable 41.5% YoY revenue increase. The wholesale segment followed suit, growing by 28.6%, while revenues from large enterprise customers expanded by 18.5% YoY, comprising the largest sub-segment. This enterprise prowess translates into tangible financial gains, as net income after tax reached P4.3 billion, reflecting a net income margin of 24.7%.

Sustaining Momentum and Industry Leadership

Converge's growth story extends to its financial prowess, evident in the 9.5% increase in EBITDA (earnings before interests, taxes, depreciation, and amortization), which reached P10.1 billion in the first half of the year. The company's consolidated EBITDA margin, now at 57.9%, speaks volumes about its financial resilience and strategic acumen.

Industry accolades aren't far behind either, as Converge maintains its industry-leading status in Return on Invested Capital (ROIC). With a substantial improvement to 15.4% as of June's end, Converge's disciplined approach to capital deployment, especially in expanding its fiber network, bears fruit.

Forging Ahead with Innovation

Converge ICT Solutions Inc.'s remarkable journey continues to captivate both residential and enterprise markets. With its unwavering focus on innovation, a diverse product portfolio, and a customer-centric approach, the company stands as a beacon of growth and industry leadership. As Converge weaves together the fabric of connectivity for homes and businesses, its future seems brighter than ever before.