Converge ICT Solutions Inc. on Thursday reported a 10-percent increase in first-quarter net income on the back of higher subscriber base.
The country’s only pure-play high-speed fixed broadband operator said net income amounted to P2.17 billion from January to March, up from P1.97 billion in the same period last year.
Consolidated revenues grew 11.5 percent to P8.64 billion from P7.74 billion in the same period.
Revenues from the residential business went up by 8.6 percent to P7.4 billion from P6.81 billion, driven by a 6-percent year-on-year growth in subscriber base.
Enterprise revenues also climbed 32.8 percent in the first quarter to P1.24 billion from P935 million a year earlier.
Converge garnered 43,000 net adds in the first three months, continuing the quarter-on quarter net adds growth.
FiberX, the company’s postpaid brand, remained the largest contributor of net adds with 28,792, up by 10 percent from the fourth quarter’s 26,252.
The Surf2Sawa, its prepaid segment, contributed 14,208 net adds in the quarter. The company’s total subscriber base stood at 1.92 million as of end-March.
Converge said it planned to fully launch its prepaid fiber-to-the-home broadband service by June this year, targeting the low-end market nationwide.
“This is the next source of growth. We are still growing very well for postpaid, but it will provide an additional pot on the revenue potential in the growth of the company,” Converge chief operations officer Jesus Romero told reporters in a virtual briefing.
Converge has 28,995 residential prepaid subscribers, while postpaid subscribers reached 1.89 million.
The company is targeting 120,000 prepaid subscribers this year and between 2 to 3 million prepaid subscribers within the next three to five years.
Converge co-founder and president Mara Grace Uy said the prepaid segment was expected to contribute significantly to total revenue by 2025.