CONVERGE ICT Solutions Inc. has raised its full-year revenue target to a double-digit growth and set a higher capital expenditure (capex) guidance driven by the strong demand for its broadband products.
In its virtual financial briefing, Grace Uy, Converge president and co-founder, said the company is revising its revenue growth guidance from 7 to 8 percent as announced early this year to 12 to 14 percent for the full year of 2024.
This was driven by the continuing growth trajectory of its products, such as BIDA Fiber, Surf2Sawa and FiberX.
“Our industry-leading performance in the first half of the year is a promising sign that 2024 will be another banner year for us. We see the demand for fiber broadband to remain unhampered, allowing us to continue reaching more and more Filipinos across different income levels with our flagship FiberX, low-cost postpaid BIDA Fiber, and prepaid Surf2Sawa offerings,” said Uy.
Converge reported a 23.6 percent surge in net income year-on-year to P5.3 billion and consolidated revenues growing 12.4 percent to P19.5 billion, on the back of strong uptake of its residential broadband business and sustained double-digit growth in its enterprise business.
As of end-June 2024, the consolidated subscriber base of Converge reached 2.35 million, a growth of 19.4 percent from 1.97 million as of the same month last year, with net additional residential subscribers of 223,751 during the six-month period, from 92,302 in the same period last year.
Robert Yu, Converge chief finance officer, said the capex guidance this year is expected to range between P15 billion to P17 billion.
In the first half of the year, Converge spent P4.7 billion and it expects to spend P10 billion to P12 billion during the latter half of the year.
“This is slightly higher than our initial guidance due to the heightened sales requirements,” said Yu.
