Dennis Anthony Uy’s Converge surges ahead with 10% Q1 profit growth, aims for 3 million subscribers in next 5 years

Pure fiber internet provider Converge ICT Solutions Inc., led by bilyonaryo Dennis Anthony Uy, reported a 10 percent increase in net income for the first quarter of 2023, driven by a growing subscriber base.

Earnings reached P2.17 billion from January to March compared to P1.97 billion in the same period last year. Revenues also saw significant growth, expanding by 11.5 percent to reach P8.64 billion.

Revenues from the residential segment grew by 8.6 percent to P7.4 billion, primarily fueled by a 6 percent increase in the subscriber base.

The enterprise division also performed well, with revenues rising by 32.8 percent to P1.24 billion.

Converge added 43,000 net subscribers, maintaining a consistent quarter-on-quarter growth trend.

FiberX, the company’s postpaid brand, played a significant role in this expansion, contributing 28,792 net adds, 10 percent higher than the fourth quarter of the previous year.

Additionally, the Surf2Sawa prepaid segment accounted for 14,208 net adds. As of the end of March, Converge’s total subscriber base reached 1.92 million.

Converge has plans to fully launch its prepaid fiber-to-the-home (FTTH) broadband service by June, targeting the class D2 market which consists of around 9.3 million households.

The Surf2Sawa prepaid FTTH plan offers various top-up options, starting from as low as P50 per day up to P700 for unlimited connectivity over 30 days.

With an estimated 70 percent of the country’s 26.4 million households belonging to lower-income segments that lack reliable fixed broadband access, Converge sees tremendous potential for growth in this underserved market.

Currently, the company has 28,995 residential prepaid subscribers and 1.89 million postpaid subscribers.

Converge is targeting 120,000 prepaid subscribers for this year and aims to reach two to three million prepaid subscribers within the next three to five years.

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