Converge Information and Communications Technology Solutions Inc., the only listed pure-play fixed broadband operator, reported Thursday its first-quarter net income rose 10 percent year-on-year to P2.17 billion, helped by the growth its subscriber base.
Revenue in the first quarter was up 12 percent to P8.64 billion on a 33 percent increase in enterprise earnings to P1.24 billion. Residential customers generated P7.4 billion, up 9 percent.
Converge ended the first quarter this year with 1.89 million residential postpaid subscribers and 28,995 residential prepaid subscribers. The total quarterly net additions continued to increase, adding 43,000 subscribers.
Monthly residential churn rate was at 1.89 percent for the quarter. A monthly churn rate between 1.5 percent to 2.0 percent remains manageable.
Converge expects subscriber growth in the coming years as it is positioned to connect unserved customers, supported by its expansion into the Visayas and Mindanao.
The company achieved a quarterly earnings before interest, taxes, depreciation and amortization of P5.17 billion, up 14 percent and improved improve its consolidated EBITDA margin to 59.9 percent in the first quarter from 58.8 percent in the year-earlier period.
Converge said it raised its EBITDA margin guidance for this year to 56 percent-58 percent.
