Converge Information and Communications Technology Solutions Inc. on Thursday reported first half net income rose 8.5 percent year-on-year to P4.3 billion, reflecting the growth in revenue and the steady growth in subscriber numbers.
Converge, the only listed pure high-speed fixed broadband play, said consolidated revenue in the first half was up 8.1 percent to P17.4 billion, with both the residential and enterprise segments delivering higher earnings.
The company ended the first half with 1.97 million subscribers, with total net additions at 92,302. A total 1.92 million of those subscribers are postpaid customers.
Converge reported free cash flows to firm at P2.87 billion at the end of June, on target to make 2023 the first full year the company will have FCFF on account of stable growth in operating cash flows with the lower capital expenditures for the year.
It said deepening presence in new areas, particularly in North Luzon, Visayas, and Mindanao, and the introduction of new products catering to low income households and innovative solutions for enterprises, especially for small and medium enterprises, indicate further subscriber growth in the coming quarters and years.
Converge said its earnings before interest, taxes, depreciation and amortization increased in the first half rose 9.5 percent to P10.06 billion, improving EBITDA margin to 57.9 percent from 57.2 percent.
It said network materials and supplies costs decreased by 92.4 percent year-on-year in the first half due to an improved capability to properly segregate costs of network materials and supplies according to usage. This has allowed Converge to defer and amortize over the contract period the cost of network materials and supplies as it moved to the last mile connections.
Converge said net debt position, as measured by total financial debt less cash and cash equivalents, decreased to P26.27 billion at the end of June from P26.60 billion at the end of March.
