Converge net income jumps to P1.7 billion

LISTED fiber broadband provider Converge ICT Solutions, Inc. saw its second-quarter attributable net income more than double to P1.7 billion from P685.1 million in the same period a year earlier, as high demand for fixed broadband connectivity services continued.

Total revenues for the quarter climbed 80% to P6.2 billion, Converge said in its quarterly report released on Thursday.

Broken down, Converge’s revenue from its residential business rose 101% to P5.4 billion, while the enterprise segment saw its revenue increase 5% to P819 million.

For the first six months of the year, the company saw its attributable net income surge 159% to P3.3 billion.

First-half total revenues increased 82% to P11.8 billion, as residential revenue jumped 105% to P10.2 billion and enterprise revenue slightly grew 4% to P1.6 billion.

Converge Chief Financial Office Advisor Matthias Vukovich said at an online briefing, “Our goal is to deploy our network at a very fast speed to make high-speed broadband accessible to a growing number of subscribers.”

He said the company is hoping to cover 55% of total households by 2025.

As for Converge’s outlook for the second half, Mr. Vukovich said: “We continue to see very strong demand for our services. Fiber penetration in the Philippines is still very low at less than 20%, compared with its [neighbors] at 40% to 50%.”

“We are confident that we will soon be capturing a third of the market,” he added.

Converge ICT shares closed 1.83% lower at P26.85 apiece on Thursday. — Arjay L. Balinbin

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