Converge Information and Communications Technology Solutions Inc. is targeting a mid to high single-digit growth in revenues in 2024, to be driven by the continued growth of its home fiber and enterprise segments.
Converge said its consolidated revenues rose by 7.2 percent nine months into the year to P26.2 billion, from P24.5 billion a year ago, cementing its position as the fastest-growing fixed broadband service provider among the top players in the Philippines, Converge said.
Residential business grew by 5 percent to P22.5 billion from P21.4 billion during the same period, the company added.
Its enterprise revenues reached P3.8 billion in the nine-month period, up 21 percent year-on-year.
In its virtual financial briefing last Friday, Converge president and co-founder Maria Grace Uy said the company will not likely hit 10 percent to 15 percent growth this year, but it is still on track to achieve 10 percent increase in earnings before interest, taxes, depreciation and amortization (EBITDA) this year.
“We will likely fall short of our revenue guidance. We are now looking at achieving the mid to high single-digit for 2023 as a consolidated revenue growth. But we are still quite confident in achieving our EBITDA at least 10 percent growth compared to last year,” said Uy.
“The revenue growth will likely be in the mid to high single-digit,” Uy also said for the company’s outlook for 2024.
Converge reported its EBITDA posted stable growth at 5 percent to P15 billion in the nine months of 2023 from last year’s P14.4 billion.
Consolidated EBITDA margin remained stable at 58 percent in the first nine months of the year, it added.
Converge’s net income after tax grew to P6.4 billion for the period from P6.1 billion in the first nine months of last year.
Converge said it is optimistic about the potential growth of its home prepaid broadband service given the large untapped market.
Prepaid home broadband brands, Bida Fiber and Surf2Sawa, intend to target the 17 million untapped households in the country that represents over 77 percent of the overall market for fixed broadband.
Despite the lower average revenue per unit for the two low-cost products, Converge said it expects both products’ payback periods to be well below one year and relatively close to that of FiberX.
As of the end of September this year, the company spent P5.2 billion on capital expenditure. – Myla Iglesias
