Segment revenues climb 15.1% to ₱3.9 billion in first half of 2026, backed by rising demand from SMEs, large corporations, and the public sector.
Converge ICT Solutions, Inc. (PSE: CNVRG) sustained robust momentum in its Enterprise segment for the first half of 2026 (1H2026), delivering 15.1% year‑on‑year growth to reach over ₱3.9 billion in revenues. The strong performance reflects accelerating digital transformation across Philippine businesses and government agencies.
Fueled by new client wins and expanding technology requirements nationwide, the Enterprise segment emerged as a key growth driver, lifting Converge’s consolidated revenues to ₱22.4 billion — up 3.1% from the same period last year.
“The consistent growth across our Enterprise portfolio validates our strategic product roadmap. Our enterprise customers are not just adopting our solutions; they are scaling their partnership with us, establishing this business unit as a core pillar of our long‑term recurring revenue,” said Robert Yu, Converge Chief Finance Officer.
Growth was evenly strong across both key customer groups:
- SME Segment: Revenues rose 15.7% year‑on‑year, driven by steady demand for reliable high‑speed fiber connectivity.
- Large Enterprise & Public Sector: Revenues increased 14.8% year‑on‑year, supported by high‑value contracts, data‑intensive service adoption, and national infrastructure projects.
Recently, Converge Global Business — the company’s dedicated large enterprise division — announced new partnerships with leading universities and local government units (LGUs) to power their digitalization roadmaps with resilient connectivity.
The Residential segment remained the largest revenue contributor at ₱18.5 billion, with total subscribers reaching 3.09 million as of end‑June 2026.
“Our strongest results show in our customers’ daily experience: fewer disruptions, faster resolution, and consistent performance recognized by both independent experts and government assessments,” shared Benjamin Azada, Converge Chief Operations Officer.
Converge continues to lead industry rankings:
✅ DICT Oplan Bantay Signal 2Q2026: #1 in fixed broadband performance, with 5 ms average latency, 158 Mbps average download speed, and an 84% drop in customer complaints.
✅ Ookla Speedtest Awards 1H2026: Swept “Best Internet,” “Fastest Internet,” and “Best Fixed Latency” honors.
Despite global pressures from rising oil prices and inflation, Converge delivered stable financial results through disciplined investment and cost management:
- EBITDA: ₱13.3 billion, with an industry‑leading 59.1% margin, in line with full‑year guidance.
- Net Income After Tax: ₱5.5 billion, representing a 24.4% net margin.
- Return on Invested Capital (ROIC): 14.9%, reflecting targeted spending on network resilience and expansion.
- Capital & Liquidity: ₱5.7 billion in cash CAPEX; net debt of ₱15.6 billion, with a healthy 0.4x gross debt‑to‑equity ratio.
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