Fixed broadband operator Converge Information and Communications Technology Solutions Inc. has trimmed down its capital expenditure guidance by P5 billion but said it is on track to reach 25 percent to 30 percent growth in revenues this year.
Converge said t the company expects to spend approximately P21 billion to P23 billion in capex in 2022, which is P5 billion lower than the company’s initial guidance range of P26 billion to P28 billion.
This will also reduce the need for Converge to draw further debt during this high interest rate environment.
Converge also revised the guidance for the subscriber growth this year due to higher churn rate in the first half this year, while on track to 20 percent year- on- year growth in enterprise revenues.
“We expect that strong demand for reliable high-speed broadband will result in continuous growth of our residential subscriber base to approximately 2 million by the end of 2022, lower than our initial guidance of approximately 2.4 million, due to higher than expected churn in first half of 2022.” Converge said.
In the first half of the year, Converge reported a net income after tax of P3.95 billion higher by 21 percent from P3.25 billion net income reported in the same period last year.
The company’s revenues also grew by 36 percent to P16.1 billion in the first half from P11.8 billion in the same period last year. Of the total revenues, P14.1 billion came from residential business which grew by 38 percent and P1.97 billion from enterprise business which grew 26 percent during the period. – Myla Iglesias
