Converge Information and Communications Technology Solutions Inc. yesterday reported a 79- percent growth in net income last year driven by a double-digit increase in subscribers.
Converge expects to sustain this growth this year despite stiff competition.
“They (PLDT Inc. and Globe Telecom Inc.) are not even 10 percent in fiber-to-the-home penetration yet. The significance of multiple players is good for the Filipino consumer and there is massive demand; we are already fighting,” Dennis Anthony Uy, Converge chief executive officer, told reporters in a virtual press briefing.
Uy said 90 percent of the new subscribers in the fourth quarter last year are first time fiber users, which shows the massive demand for high fiber internet services in the country.
Converge’s net income stood at P3.4 billion in 2020 from P1.9 billion previously while consolidated revenues rose by more than 71 percent to P15.7 billion in 2020, from P9.1 billion in 2019.
The company’s residential subscriber base doubled to 1.04 million by end-2020 from 530,000 in 2019 and this is expected to reach 1.6 to 1.7 million subscribers by yearend.
Meanwhile, the commercial launch of third telecom player Dito Telecommunity Corp. has no impact on the company’s operation as the two are serving totally different markets, said Jesus Romero, Converge chief operating officer.
“We operate in a different market, wired and high-speed broadband. Dito is actually rolling out and focusing on mobile services …,” Romero said.
Converge is set to expand its services to unserved and underserved areas by deploying additional fiber-to-the-home ports, reaching approximately 35 percent of household in the Philippines by December.
It has allocated P20 billion for capital expenditure this year, with 20 percent to be spent on the backbone, 50 percent for its access network in Luzon and 20 percent for IT initiatives to enhance customer experience, said Matthias Vukovich, Converge chief financial officer.
As of end-2020, Converge’s nationwide network reached more than 6.1 million homes, on track to reach its mid-term goal to cover approximately 55 percent of households nationwide by 2025.