Converge grows 9-month income on subscriber base expansion
MANILA -A continued expansion in its residential customer base helped Converge ICT Solutions hit a nine-month income of P6.4 billion, up 4.3 percent year-on-year.
The internet service provider on Friday said revenues climbed by 7.2 percent to P26.2 billion at end-September.
Residential business mainly accounted for the top line as revenues climbed by 5 percent to P22.47 billion. Enterprise segment revenues, meanwhile, improved by 21 percent to P3.78 billion.
READ: Converge breaches 2M subscribers after entry into mass market segment
The growth was supported by a surge in the number of customers, which totaled 2.05 million as of end-September. In the third quarter, Converge registered an additional 225,000 subscribers, the highest quarterly increase in the past eight quarters.
READ: Converge sets expansion for boom in data center
Not meeting target
Converge CEO and cofounder Dennis Anthony Uy said they were expecting the company would attract a million more subscribers by 2025 with their affordable broadband products.
Despite the momentum, Converge president and cofounder Maria Grace Uy said they would not be able to meet the 10-percent to 15-percent revenue growth target for the year due to macroeconomic conditions. Rising inflation has been hampering consumer spending.
A mid to high single-digit growth was to be expected, she said. This was the same revenue guidance set for next year, she added.
Converge has deployed nearly 7.9 million fiber ports across the country as of end-September. Its network covers 16.7 million homes or 77.85 percent of the population. INQ
