Converge Q3 earnings climb amid subscriber haul

MANILA, Philippines — Converge ICT Solutions, Inc.’s fortunes improved in the third quarter as its residential subscriber haul fattened amid their expansion in Visayas and Mindanao. 

In a disclosure sent to the Philippine Stock Exchange on Thursday, the company reported its net income rose 11% year-on-year to P2.16 billion in the third quarter. Year-to-date, Converge’s bottom-line advanced 17% on an annual basis. 

Revenues in the third quarter surged 20% on-year to P8.43 billion in the third quarter, on the back of its residential segment. Its residential fiber business rose 18% on an annual basis to P7.3 billion as it added 28,000 new subscribers to its books in the same period.

Dennis Anthony Uy's fiber internet business reckoned subscribers numbered 1.85 million in the first nine months. As it is, the company reported 15.8% of new subscribers that came from households in Visayas and Mindanao. 

That said, Converge’s business benefitted from the pandemic, since the public health crisis forced companies to employ work-from-home schemes. The company added 411,320 new fiber-to-the-home ports in the third quarter, which reportedly increased Converge’s countrywide reach. 

Its enterprise arm accelerated 29% on-year to P1.15 billion in the third quarter, the sixth straight period of growth for this segment. Converge said it had 31,000 small and medium enterprises tethered to its fiber internet services during the period, climbing 77% compared to a year ago.

Rosy figures aside, total general and administrative expenses shot up 36% year-on-year to P1.56 billion in the third quarter. 

Shares in Converge ended trading on Thursday up 8.11% to P12 apiece.