Investment banker named Converge CFO

MANILA, Philippines — Broadband provider Converge ICT Solutions Inc. has tapped the expertise of seasoned banking and investment executive Robert Leo Yu to serve as its chief finance officer.

Converge yesterday announced the appointment of Yu, filling up the shoes vacated by former Morgan Stanley banker and now Princeton Digital Group executive Matthias Vukovich.

In his appointment, Yu determined that his primary work will be to ensure that Converge is well funded for its expansion pipeline.

Toward this end, the former investment banker plans to generate funds internally and from outside sources, with the objective of bringing Converge to a position of financial strength.

“The goal is to take Converge to the next phase of its evolution as a company without taking any undue risks. The short-term plan is to make sure that all our upcoming investments are prudently funded, striking a balance of reinvesting internally generated cash flow and utilizing our external sources of funds,” Yu said.

“Over the long term, Converge will be in a solid financial position that rewards all stakeholders,” he added.

Yu boasts of a career that started in New York, where he worked for Citigroup doing mergers and acquisitions, followed by a climb in the corporate ladder of Morgan Stanley’s Southeast Asia and Consumer Coverage where he became vice president in 2017.

He then worked as an investment principal at Sierra Madre Advisers Inc., a company that bets on some of the most ambitious enterprises in the Philippines.

Prior to his appointment as CFO, Yu served as consultant for Converge from 2018 to 2019. He helped Converge create its capital structure plan as the company was preparing then for its initial public offering in 2020.

Yu is entering Converge at a time when the company is looking to expand outside the broadband business.

Converge grew its profit by 22 percent to P9.1 billion in 2023, from P7.44 billion in 2022, as revenue rose to P35.36 billion while expenses dipped to P12.71 billion.

To date, Converge handles a subscriber base of 2.13 million and is eyeing to enter new segments in connectivity like cloud and gaming.

For 2024, Converge targets to improve revenue by seven percent backed by a six percent rise in the residential bracket and a 12 percent jump in enterprise services.