Converge, the leading pure fiber broadband provider founded by bilyonaryo Dennis Anthony Uy, reported a 3.9 percent growth in net income to P7.44 billion last year amid an aggressive expansion.
Consolidated revenues surged by 27.3 percent to P33.7 billion, driven by the strong growth in Converge’s residential business segment, which grew by 27.4 percent to P29.46 billion, supported by an 11 percent increase in its subscriber base.
Converge’s success in the enterprise market was equally notable, with revenues from this segment surging by 26.4 percent to reach P4.2 billion. This growth was fueled by the small and medium enterprise and wholesale segments, indicating a strong demand for the company’s services across various industries.
In addition to its solid financial performance, the company has maintained a strong balance sheet and cash flows, with ample liquidity and gearing comfortably within bank covenants.
The company’s debt service coverage ratio was 3.9x, and the net debt-to-total equity was at 0.8x, well within the required financial covenants from its debt facilities. As of December 31, 2022, Converge’s total undrawn debt facilities stood at P14 billion.
Converge’s success in expanding its network was also noteworthy, with approximately 7.9 million new fiber-to-the-home ports deployed as of the end of December
. The company’s nationwide network has reached more than 14.9 million homes, representing a 56.2 percent nationwide household coverage. This achievement surpassed the company’s accelerated target to cover approximately 55 percent of households in the Philippines by 2023, making Converge’s FTTH network the broadest in the country by number of ports.
With approximately eight million ports now deployed across the nation, Converge is poised for significant growth in the coming years as it seeks to connect unserved customers, supported by its expansion into the Visayas and Mindanao region.
Furthermore, the company’s expansion into lower cost products such as prepaid fiber has enabled it to reach lower income segments, further strengthening its market position.
