Wednesday, May 15, 2024

Converge achieves double-digit growth rates in Q1


Consolidated revenues are up 10.4%, while net income is up 17.5%.

Converge ICT Solutions Inc. (PSE: CNVRG), a leading fiber broadband and technology provider, began the year strong, with consolidated revenues of P9.5 billion in the first quarter of the year, up 10.4% from the same period last year, and net income of P2.6 billion, up 17.5% year on year, owing to sustained robust demand for its flagship and flanker fiber broadband products and enterprise solutions.

”This strong showing in the first quarter of 2024 puts us solidly on track to reach our revenue guidance for the year. We’re confident we can sustain this steady growth for the rest of the year, especially as we lean into our mass market offerings,” said Converge President and Co-Founder Maria Grace Y. Uy.

Converge registered its highest quarterly net additions in subscribers in ten quarters, with 124,793 added to its subscriber base to reach nearly 2.3 million residential customers at the end of March 2024. 

“We continue to see rising demand for our fiber products, both prepaid and postpaid. At the same time, we are not sitting still - we are diversifying our potential offerings to go beyond connectivity through cooperation with global tech companies, such as the recently concluded Memorandum of Understanding with NAVER Cloud of South Korea,” said Converge CEO and Co-Founder Dennis Anthony Uy. 

Enterprise revenues grew by 10.5% in the first quarter of the year, reaching P 1.4 billion. Enterprise remains a growth area for the company as it intends to officially roll out forthcoming products targeting the MSME sector and expand services to the public sector.

“For the rest of 2024, we are laser-focused on growing our sales partnerships and distribution channels to further prop up customer acquisition in our mass market brands. We also plan to strengthen the push for our Enterprise-grade solutions to growing industries,” said Converge Chief Commercial Officer Benjamin Azada.

“Keeping customers happy remains a top priority for us; that’s why we keep fortifying our network and pushing programs to improve customer experience. And we are seeing these efforts bearing fruit with elevated customer satisfaction,” added Converge Chief Operations Officer Jesus C. Romero.  

Gains were made in residential churn management as consolidated residential churn reached a low 1.82%, the lowest since the fourth quarter of 2022. This contributed to the shoring up of net additions in the latest preceding quarter.

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