Converge Information and Communications Technology Solutions Inc., the only pure-play high-speed fixed broadband operator, on Tuesday reported an 18 percent growth in net income to P2.6 billion on strong subscriber growth and an improvement in churn rate.
Consolidated revenue grew by 10 percent to P9.5 billion in the first quarter as total subscribers increased to 2.25 million from 1.89 million in the year-earlier period. Converge said that gross addition of 244,670 in the first quarter was the highest.
Average monthly churn rates have also gone down to 1.82 percent from over 2 percent.
Converge kept its balance sheet and cash flows remain strong, ensuring ample liquidity and gearing within bank covenants.
Net debt position decreased to P20.1 billion in March from P21.5 billion at the end of December.
Total cash capital expenditures in the first quarter amounted to P3.0 billion.
Robert Yu, the newly-appointed chief financial officer of Converge, said the goal is to take Converge to the next phase of its development with minimal risk.
“The short-term plan is to make sure that all our upcoming investments are prudently funded, striking a balance of reinvesting internally generated cash flow and utilizing external sources of funds. Over the long-term term, Converge will be in a solid financial position that rewards all stakeholders,” said Yu.
