MANILA, Philippines — Converge ICT Solutions Inc. ended the first quarter with 18-percent uptick in net earnings as more Filipinos tapped its services for internet connectivity at their homes, signifying the company’s growing footprint.
On Tuesday, the fiber internet service provider reported that its net income in the first three months had increased to P2.55 billion from P2.17 billion as total revenues climbed by 10 percent to P9.54 billion.
The top-line figures were mainly driven by its residential business, whose revenue contribution jumped by 10 percent to P8.17 billion for the period.
This was supported by the growth in home subscribers, which increased by 17.3 percent to 2.25 million as of end-March. Household coverage improved to 63.54 percent from 59.9 percent a year ago.
As of end-March, Converge has deployed 8.9 million fiber ports—5.8 percent more compared to last year’s 8.38 million.
SME business growing
Meanwhile, enterprise revenues rose 11 percent to P1.37 billion in the first quarter as clients grew by 25.2 percent to nearly 51,000. Converge noted that the small and medium enterprises (SME) were the fastest-growing subsegment, having grown 31 percent in terms of revenue contribution.
READ: Converge spending up to P19B in 2024 to expand network
“For the rest of 2024, we are laser-focused on growing our sales partnerships and distribution channels to further prop up customer acquisition in our mass market brands,” Converge chief commercial officer Benjamin Azada said.
Converge is currently working on its second joint fiber optic network project with Globe Telecom Inc. The 209-kilometer fiber project, which links Tacloban and Maasin via Baybay in Leyte, is set to be completed by the third quarter of this year.
Along with this, the company aims to complete by early next year the Bifrost Cable System and the South-East Asia Hainan-Hong Kong Express Cable System (SEA-H2X).
The 15,000-km Bifrost project will connect the Philippines to Singapore, Indonesia, Guam and the west coast of North America. It has a design capacity of up to 15 terabits per second (Tbps).
The 5,000-km SEA-H2X project, which has a design capacity of 160 Tbps, covers the Philippines, Hong Kong, China, Thailand, East Malaysia and Singapore.
“Keeping customers happy remains a top priority for us; that’s why we keep fortifying our network and pushing programs to improve customer experience,” Converge chief operations officer Jesus Romero said.
READ: Naver Cloud of S. Korea teams up with Philippines’ Converge ICT
Recently, Converge signed a memorandum of understanding with South Korean technology company NAVER Cloud Corp. to develop cloud-based solutions in the country. The parties also intend to collaborate in deploying technology capabilities related to smart cities and artificial intelligence. —Tyrone Jasper C. Piad INQ