LISTED fiber internet provider Converge ICT Solutions, Inc. saw its attributable net income for the third quarter (Q3) increase by 40.4% to P2.92 billion, driven by higher revenues.
For the July-to-September period, Converge’s gross revenues grew by 17.2% to P10.42 billion from P8.89 billion a year ago, the company’s financial statement showed.
Broken down, revenues from its residential business climbed by 16% to P8.81 billion, while enterprise business registered a 25% increase to P1.61 billion.
Gross expenses, on the other hand, went up by 12.1% to P6.13 billion from P5.47 billion in the previous year.
“This sustained upward growth trend is reflective of our effort to make internet access more affordable and inclusive for a broader segment of the market,” Converge Chief Executive Officer and Cofounder Dennis Anthony H. Uy said.
“We are encouraged that our initiatives continue to bear fruit, with our partnerships with tech companies empowering us to strengthen our capabilities and our projects with the government contributing to bridge the digital divide,” he added.
For the nine months ending in September, Converge’s attributable net income improved by 29% to P8.21 billion compared to the P6.37 billion reported last year.
Revenues were higher by 14.1% to P29.9 billion from, driven by the “consistently strong performance of its residential, enterprise, and wholesale businesses.”
For the January-to-September period, the residential business accounted for P25.4 billion in the company’s revenues, up 13.2%.
“For the remainder of the year, our focus is to continue exploring innovative ways to enhance satisfaction across our diverse customer base,” Converge Chief Operations Officer Jesus C. Romero said.
As of the end of September, the company said it had a total of 2.46 million subscribers, comprising 2.22 million postpaid subscribers and 241,848 prepaid subscribers.
For its enterprise business, revenues rose by 19% to P4.5 billion, as all segments registered double-digit growth during the period, including the wholesale segment which remained strong with 16.6% growth year on year.
“We’re encouraged by the steady rally of the company. With this, all signs point us hitting the 12-14% revenue guidance for 2024,” Converge President and Cofounder Grace Y. Uy said.
DELAYED EXPANSION ACTIVITIES
The company’s capital expenditure (capex) for the first nine months ended at P7.5 billion, Converge Chief Finance Officer Robert A. Yu said during a briefing.
“We expect to spend less than what we had initially guided due to the constant rains and floods during the latter half of the year, delaying some of our port rollouts and expansion activities,” he said.
“From P15 billion-17 billion, we now expect to only spend about P11 billion-13 billion, with the difference getting delayed to next year,” he added.
In October, Converge announced its partnership with streaming service Netflix to offer internet and Net-flix entertainment plans.
The new Converge Netflix bundle will be offered to its existing FiberX customers.
At the local bourse on Wednesday, shares in the company climbed by 3.01% to close at P16.44 each. — Sheldeen Joy Talavera