Converge Information and Communications Technology Solutions, Inc. , the only pure high-speed fixed broadband operator listed on the Philippine Stock Exchange, on Monday reported a 23 percent growth in net income last year to to P9.1 billion, helped by the strong growth in subscribers base.
Converge said it ended 2023 with total subscriber of 2.13 million, up 13 percent from the 1.88 million in the previous year.
Consolidated revenue grew by 5 percent to P35.4 billion from P33.7 billion in 2022, driven by the steady growth in residential business and the double-digit gain in its enterprise business.
Converge said it created a dedicated management team to drive long-term strategic churn management initiatives in view of lowering churn further to more favorable levels. It ended 2023 with a consolidated churn rate of 2.18 percent from 1.75 percent at the end of 2022.
The company said it was able to maintain its strong balance sheet and cash flow with ample liquidity and gearing comfortably within bank covenants. Its net debt position, as measured by total financial debt less cash and cash equivalents, decreased to P21.5 billion at the end of 2023 from P23.1Bn at the end of September.
Converge reported total cash capital expenditure of P9.0 billion last year. It said P3 billion worth of capex was carried over to 2024 due to late invoices received from submarine cable contractors and delays in the construction if some assets.
With an expanding sales network and a renewed blue-ocean strategy, the company stands more ready than ever to meet the growing demand for fiber connectivity.
Converge said it looks to grow consolidated revenue by 7 percent to 8 percent this year on an expected 6 percent growth in residential and 12 percent growth in enterprise. With various cost management efforts in place, earnings before interest, taxes, depreciation and amortization margins are expected to settle at the 58 percent to 59 percent levels.
Due to upcoming international subsea cable payments, the inclusion of capital outlays for data centers, and delays in supplier invoices earmarked for 2023 payment, the company looks to spend P17 billion to P19 billion in cash capex this year.
