Converge Information and Communications Technology Solutions, Inc. (PSE: CNVRG), the Philippines’ exclusive high-speed fixed broadband provider, reported substantial growth in the third quarter of 2023, surpassing the two million subscriber mark. This includes 1,966,105 postpaid and 82,181 prepaid subscribers, with net additions totaling 170,925 in the first nine months, 78,623 of which were added in the third quarter alone.
The company’s revenue saw a significant increase of 7.2% in 9M2023, reaching P26.2 billion up from P24.5 billion in 9M2022. This growth is primarily driven by their residential business, which saw a 5.2% increase and accounts for 85.6% of their consolidated revenue. Enterprise revenues have also seen a remarkable 21.1% increase.
Despite the economic challenges posed by high inflation, Converge remains confident in its growth trajectory and churn management strategies. By offering tailored plans to meet customer budgets, Converge aims to maintain manageable churn levels in the medium to long term. The company’s strategic initiatives include the introduction of new brands such as Bida Fiber and Surf2Sawa, which have shown promising growth.
To further enhance customer retention, Converge is leveraging technology and data analytics to improve service quality and efficiency. The company’s use of AI and customer profile analytics has been instrumental in reducing network faults and improving operational costs.
The company’s EBITDA has steadily increased by 4.9% to P15.1 billion, and their disciplined capital deployment has resulted in a strong Return on Invested Capital (ROIC) of 15.4%. With a decrease in net debt position and a robust debt service coverage ratio, Converge maintains a healthy balance sheet, ensuring its ability to navigate the current economic landscape while continuing to provide high-quality broadband services to its customers.
Converge Singapore now operational
Converge Singapore, the international unit of Converge, is now operational and fully geared up to service enterprise customers in the region. Through its global subsidiary, Converge offers a variety of international connectivity services, such as Ethernet-International Private Line service, Dedicated Internet Access service, and submarine cable capacities, among others.
The Company expects both of its subsea cable systems, Bifrost Cable System and the South-East Asia Hainan-Hong Kong Express Cable System (“SEA-H2X”), to be completed and operational by the latter half of 2024.
These two subsea cable systems and the Company’s Singaporean office are expected to open a lot of growth opportunities for the Company’s wholesale business as supply for international bandwidth remains thin.
To this end, Converge recently onboarded technology sales strategist Victor Koh to lead Converge Singapore as General Manager and Head of International and Wholesale Sales.
With over 30 years of experience in the information technology and telecommunication industry, he will be responsible for managing Converge Singapore’s operations while driving revenue growth by extending connectivity services and fiber optic capacity to international markets.