Converge ICT Solutions' NIAT Grows by 18.8% to P10.8 Billion in 2024

​The Philippines’ only pure-play high-speed fixed broadband operator, Converge Information and Communications Technology Solutions, Inc. ended 2024 with a total of 2,563,458 residential subscribers. This is comprised of 2,272,827 postpaid subscribers and 290,631 prepaid subscribers.

​Consolidated revenues grew by 14.8% in FY2024 to P40.6Bn – reinforcing the Company’s position as the fastest-growing fixed broadband service provider in the Philippines.

Residential business grew to P34.4Bn during the same period, representing 13.7% year-over-year growth. FiberX subscriber base grew by 196,419 during the year, 57.9% higher than the previous year. BIDA Fiber and Surf2Sawa recorded 90,458 and 175,795 respective net adds in 2024, their first full year since their official product launches.

In FY2024, enterprise revenue grew by 21.9% year-on-year to P6.2Bn. Small and medium enterprise (“SME”) continued to be the fastest growing subsegment with 30.9% revenue growth with all subsegments maintaining their double-digit growth.

The Company’s EBITDA grew by 14.2% to P24.6Bn in FY2024, representing an EBITDA margin of 60.5%, from P21.5Bn in FY2023 or 60.9% EBITDA margin. The Company maintained its industry leading Return on Invested Capital (“ROIC”) at 18.3% from 18.0% last quarter. This is a result of the Company’s distinguished performance during the year and disciplined approach in deploying capital to expand its fiber network and improve its overall services.

Net income after tax grew by 18.8% to P10.8Bn in FY2024 from P9.1Bn in FY2023, resulting in a net income margin of 26.6% for FY2024, higher than FY2023 net income margin of 25.7%.

Converge has been able to maintain its strong balance sheet and cash flows with ample liquidity and gearing comfortably within bank covenants. The Company’s net debt position (as measured by total financial debt less cash and cash equivalents and short-term cash placements) decreased from P14.1Bn as of September 30, 2024 to P12.5Bn as of December 31, 2024. The Company repaid a portion of its financial debt, reducing the balance to P29.5Bn. The Company’s debt service coverage ratio (“DSCR”) was 2.9x, the net debt-to-total equity was at 0.2x, and gross debt-total equity was at 0.5x – well within the required financial covenants from its debt facilities.

Total cash CAPEX as of FY2024 amounted to P9.3Bn, slightly lower than anticipated due to delays in turnover of turnkey projects.

Residential

With a focus on providing better and more reliable internet experience, Converge launched Boost Mode for all existing and new residential subscribers in November 2024. This is a free automatic speed boost of an additional 100 Mbps for all FiberX plans plus Wi-Fi 6 capabilities to FiberX plans starting from P1,699.

“At Converge, our vision has always centered on giving amazing digital experiences.” Converge EVP & Chief Commercial Officer Benjamin B. Azada adds, “Boost Mode is only the most recent step in Converge's vision of bridging the gap with the best in the world.”

In October 2024, Converge also announced a new collaboration with Netflix, the world’s largest streaming service in terms of subscriber base. This new collaboration will be headlined by the new Converge Netflix Bundles, where new and existing FiberX customers will be able to have both an internet and Netflix plan, all in one. This offering aims to provide countless entertainment options and a better streaming experience for FiberX users.

This Converge Netflix Bundles are offered with the abovementioned Boost Mode, a new WiFi-6 Next Gen Modem, and a Converge Xperience Box with Freemium Channels. The Converge Xperience Box is a Google-certified Android TV box that allows the customer to download apps such as YouTube, Spotify, and streaming apps like Netflix.

Enterprise

Proving its innovative mindset that goes beyond broadband connectivity but in software-driven digital solutions, the Company launched the Converge Content+ in 2024, an enterprise, internet-based TV solution catering this time to the hospitality industry.
Converge aims to maintain its innovative leadership as throughout 2025, Converge is set to expand its suite of Enterprise and Wholesale products as it simultaneously links up with technology partners to bring more innovative solutions to Philippine businesses.

In February 2025, Converge introduced Fiber-to-the-Room (“FTTR”) technology at one of the country’s leading medical institutions, St. Luke’s Medical Center. The digital solution, known as the St. Luke's In-Room Digital Concierge, ensures a smooth and smart patient experience during each stay at the medical institution.
The FTTR solution has been deployed to almost 400 rooms at St. Luke's Medical Center in Bonifacio Global City, while over 400 rooms at their Quezon City hospital are underway for activation. This is in addition to Converge's high-capacity, seamless Wi-Fi in all the common areas at both hospitals.

For the second half of 2024, Converge cemented its status as the Philippines’ top internet provider, sweeping multiple accolades from Ookla®. In February 2025, Converge was recognized as the Fastest Fixed Network, delivering download speeds of up to 561.51 Mbps and upload speeds of up to 509.08 Mbps. The Company’s commitment to high-quality streaming was also acknowledged, earning the Best ISP Video Experience award with a Video Score of 78.17, ensuring smooth and uninterrupted entertainment for users. Beyond speed, Converge proved its dominance in gaming and overall connectivity. With an impressive Game Score™ of 83.06, Converge secured the title of Best ISP Gaming Experience, guaranteeing low-latency and seamless gameplay for Filipino gamers. Additionally, its Overall Connectivity Score of 76.13 solidified its position as the Best Fixed Network, showcasing unmatched reliability and consistency. These achievements reinforce Converge’s relentless pursuit of delivering world-class internet services to Filipino households and businesses.

Additionally, Converge was regarded as the Philippine’s Digital Experience of the Year – Broadband Telecommunication awardee during the Asian Experience Awards 2024 with the Company’s GoFiber app and FB Chatbot project.

Converge established its digital transformation journey with ambitious goals, aiming to attain remarkable results in operational productivity and customer satisfaction. The key areas addressed in the project include streamlining workflows, in which internal processes are simplified to improve overall efficiency; reducing manual errors and improving accuracy by automating tasks; and enhancing data analytics to make informed decisions and drive business growth.

The GoFiber app has empowered Converge’s customers’ control over managing their accounts at their fingertips. With streamlined bill payments and instant notifications about service status, customers are assured of convenience and transparency. Meanwhile, the chatbot project significantly reduces the workload on human agents and improves overall efficiency through creating auto-tickets from concerns raised online.

The successful implementation of the GoFiber app and FB Chatbot has set a new standard for how Converge interacts with customers and manages operations. These projects show how Converge values innovation and constant improvement to ensure that the customers receive best-in-class services.

In January 2025, Converge secured a rare Tier 3 design certification for its data center in Caloocan City that is scheduled to go online within the year. The certification confirms that the Caloocan Data Center is compliant with industry standards on maintainability and redundancy. It also validates that the facility is reliable enough to be online for most of the time, ensuring that it can serve requirements consistently.

The Caloocan Data Center is designed to accommodate 300 racks, and Converge intends to use the facility for its own operations.
Converge rejected a record 183 billion attempts throughout 2024 to enter platforms that were registered in its network as illegal. Overall, Converge listed 150,000 links as illegal, with domains leading to sites containing materials related to online sexual abuse or exploitation of children (“OSAEC”) or promoting digital scams and illegal gambling.

Converge chief information security officer Andrew Malijan explained that Converge had stepped up its cybersecurity initiatives to keep pace with criminals who are increasingly exploiting AI to enhance their digital attacks.

Internet service providers are required by Republic Act 11930 to prohibit access to channels that distribute materials containing OSAEC, especially as the Philippines is internationally notorious as an OSAEC hotspot.

On top of restricting sources of illegal and unsafe domains, Converge also launched Project Piglet in December 2024 - an advocacy program aimed at promoting digital literacy and privacy awareness among Filipino students. To kickstart the project, Converge partnered with Francisco Legaspi Memorial School (FLMS) in Pasig where it hosted a child-friendly event for students in Grades 2 to 6. The launch included an interactive storytelling session, highlighting the importance of responsible online behavior and the risks of oversharing on social media.

“The internet presents both opportunities and threats for children. Today’s kids are exposed to technology at a very young age, so it is essential to educate them about online safety early on,” said Converge Senior Vice President and Corporate Compliance and Data Protection Officer, Laurice Esteban-Tuason. “We hope to instill in them the vigilance needed to protect their personal data from digital threats.”

Converge’s initiative is part of a broader effort to build awareness of digital privacy risks, especially among the younger generation. The Company plans to expand the program in the future, reaching more schools nationwide and engaging students of varying academic levels.

With the Company’s strong trajectory and the industry’s broad underserved market, the Company’s well-engineered products are well-positioned to capitalize on this growth potential. The Company looks to grow consolidated revenues by 14% to 16% this 2025.

With various cost management efforts in place, EBITDA margins are expected to settle at the 61% to 62% levels. Additionally, ROIC is expected to reach 16.5% to 17.5%, slightly lower due to elevated cash CAPEX expectations of P20 to P25Bn. These costs include one-off projects, namely the international subsea cable systems and the two data centers, on top of the port expansion and redundancy CAPEX earmarked for the year.