Converge Information and Communications Technology Solutions Inc. said Thursday net profit climbed 21 percent in the first half from a year ago on strong demand for reliable high-speed broadband.
The company posted a net profit of P3.95 billion in the first six months, up from P3.25 billion in the same period last year.
Consolidated revenues grew 36.3 percent in the first semester to P16.05 billion from P11.78 billion in the same period last year.
Residential revenues went up by 37.9 percent to P14.08 billion from P10.21 billion, driven by higher subscriber base. Converge ended June with 1.81 million residential subscribers.
Revenues from Enterprise business grew by 25.5 percent year-on-year in the first half and reached the milestone of more than P1 billion quarterly revenues in the second quarter.
“We expect that strong demand for reliable high-speed broadband will result in continuous growth of our residential subscriber base to approximately 2 million by the end of 2022, lower than our initial guidance of approximately 2.4 million, due to higher than expected churn in first half of 2022,” Converge co-founder and chief executive Dennis Anthony Uy said.
“Converge continues to be on track to deliver enterprise revenue growth of 20 percent YoY, in line with our initial guidance. The revised outlook for our residential business results in a consolidated YoY revenue growth guidance of 25 to 30 percent for 2022,” he said.
Uy said the company reduced its capital expenditures to between P21 billion and P23 billion this year from an initial guidance range of P26 billion to P28 billion following the accelerated network rollout in the previous quarters.
“This will also reduce the need for Converge to draw further debt during this high interest rate environment,” he said
Converge accelerated its network rollout by deploying 1.2 million new FTTH ports nationwide in the first half, putting the company on track to reach its adjusted goal of about 55 percent nationwide household coverage by 2023.