Converge ICT Solutions Registered Consolidated Revenues of P29.9 Billion in 9M24, Up 14.1%

The Philippines’ only pure-play high-speed fixed broadband operator, Converge Information and Communications Technology Solutions, Inc.ended September 2024 with a total of 2,459,851 residential subscribers. This is comprised of 2,218,003 postpaid subscribers and 241,848 prepaid subscribers.

Converge ICT Solutions' consolidated revenues grew by 14.1% in 9M2024 to P29.9 billion from P26.2 billion in 9M2023, reinforcing the company’s position as the fastest-growing fixed broadband service provider in the Philippines.
​
Residential business grew to P25.4Billion during the same period, representing 13.2% year-over-year growth. This growth was largely attributed to the increase in the number of residential subscribers. FiberX gross adds during the third quarter was the highest of the last 10 quarters with churn rate maintained at around 2%. Surf2Sawa recorded its highest quarterly gross and net adds, showing the continuous demand from the broader underserved market.

In 9M2024, enterprise revenue grew by 19.0% year-on-year to P4.5Billion from P3.8Billion in the same period last year. This growth trajectory reflects the continued expansion of our Enterprise customer base, reaching over 60,000 customers as of September 30, 2024. Small and Medium Enterprise (SME) continued to be the fastest growing subsegment with 30.0% revenue growth with all subsegments maintaining their double-digit growth.

The Company’s EBITDA grew by 20.5% to P18.3Billion in 9M2024, representing an EBITDA margin of 61.0%, from P15.1Billion in 9M2023 or 57.9% EBITDA margin. Provision for impairment of trade and other receivables declined by 34.1% to 4.0% cost margin, from 6.8% in 9M2023, due to improved efficiency and effectivity in collection.

The Company maintained its industry-leading Return on Invested Capital (“ROIC”) at 18.0% from 17.3% last quarter. This is a result of the Company’s disciplined approach in deploying capital to expand its fiber network and improve its overall services. 

Net income after tax grew by 29.0% from P6.4Billion in 9M2023 to P8.2Billion in 9M2024, resulting in a net income margin of 27.4% for 9M2024, higher than 9M2023 net income margin of 24.3%. 

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) decreased from P15.8Billion as of June 30, 2024 to P14.1Billion as of September 30, 2024. The Company repaid a portion of its financial debt, reducing the balance to P30.9Billion. The Company’s Debt Service Coverage Ratio (DSCR) was 3.4x, the net debt-to-total equity was at 0.4x, and gross debt-total equity was at 0.6x – well within the required financial covenants from its debt facilities. 

Total cash CAPEX as of 9M2024 amounted to P7.5Billion. 

In September, Converge’s Board of Directors has approved its dividend policy aimed at maintaining a dividend payment ratio for all outstanding common shares of the Company of approximately 25% to 30% of its net income based on the latest audited net income.

Converge will share part of its profits with the Company’s common equity shareholders - adhering to one of the pillars of the G20/OECD Principles of Corporate Governance 2023’s rights and equitable treatment of shareholders.

“We are really thankful to all shareholders who have believed in our mission to provide world-class connectivity services to the Filipino people. We are committed to ensuring that we deliver value to our shareholders as we continue to improve our performance,” said Converge CEO and Co-Founder Dennis Anthony Uy.

"With the continued strength of the earnings growth and operating cash flow generation at Converge, we remain well positioned to support the dividend policy going forward. The approval of this dividend policy reflects the Company’s commitment to delivering value to shareholders while investing in the continued growth of the business,” said President and Co-Founder Maria Grace Uy.

Following its robust performance in the first half of the year and having considered future cash requirements for expansion and growth, Converge also declared a special cash dividend amounting to P1.31 billion or P0.18 per share to all outstanding common shareholders on record as of September 24, 2024, ahead of its 2025 target dividend declaration announced during its initial public offering (IPO) in October 2020.