Converge ICT Solutions Inc. has doubled its income in 2021 to P7.2 billion from P3.4 billion in the previous year.
The company is confident of sustaining its growth this year driven by continued expansion of its residential subscriber, and recovery of the enterprise business.
Converge reported a total consolidated revenue of P26.5 billion last year, 69.2 percent higher than the P15.7 billion revenues posted in 2020 driven by growth of residential subscriber which grew 63 percent to 1.7 million in 2021 reaching the high end of its goal.
“We sustained our industry-leading trifecta with another record financial performance in 2021,” said Maria Grace Uy Converge president and co-founder, referring to the company’s 69.2 percent year-on-year revenue growth, 55.9 percent EBITDA margin, and 20.9 percent return on invested capital (ROIC), much higher than the average of broadband players in the Asia-Pacific region.
“We expect to continue our growth trajectory; we hope to reach 2.4 million residential subscribers by end of December 2022. We also expect our enterprise revenue to continue its recovery, grow 20 percent year on year. This will lead to our trifecta of 50 percent revenue growth 55 percent EDITDA margin and 20 percent ROIC,” Uy said in a briefing.
Converge has earmarked higher capital expenditures of P26 billion to P28 billion this year, as compared to last year’s capex of P25 billion to further deepen its network and deploying additional port according to Uy.
Dennis Anthony Uy, Converge chief executive officer, and co-founder said that he expects the fiber to the home business to continue to grow in the next two to three years as market penetration still low compared to the region.
The company is optimistic to achieve its accelerated goal of reaching 55 percent of all households by 2023.
