LEADING fiber internet provider Converge ICT Solutions Inc. more than doubled its net income to P7.2 billion in 2021 from P3.4 billion the previous year, growing by 111 percent on the back of record number of port rollouts, continued strong expansion of its residential subscriber base, and recovery of the enterprise business.
Maria Grace Y. Uy, Converge president and co-founder, said the company has achieved a lot in 2021 both operationally and financially.
"We qualified for early inclusion in the Philippine Stock Exchange Index in August, less than 12 months since the Company was listed. We were also added to the small-cap index of the FTSE the month after. It was announced that we will be promoted to the mid-cap index effective March 21," she said, adding that its financial performance reached record levels.
Converge reported on Thursday that it sustained its robust growth with total consolidated revenues reaching P26.5 billion last year, 69.2 percent higher than the P15.7 billion revenues posted in 2020.
“We sustained our industry-leading trifecta with another record financial performance in 2021,” she said, referring to the company’s 69.2 percent year-on-year revenue growth, 55.9 percent EBITDA margin, and 20.9 percent return on invested capital (ROIC), much higher than the average of broadband players in the Asia-Pacific region.
She also noted that Converge also maintained its strong credit profile as reflected in the PRS AAA credit rating with Stable Outlook given by PhilRatings for its upcoming maiden bond issue. The proceeds of the bond issue will be used to partly fund its capital outlay requirements this year.
Meanwhile, Converge CEO and co-founder Dennis Anthony Uy said the company's entry into Visayas and Mindanao contributed to its aggressive port rollout, and continued turn-in of subscribers in Luzon and existing markets pushed its residential business revenues up by 83.2 percent.
“Our network has now passed 10.9 million homes and we’re covering around 42.5 percent of Philippine households. We’re confident of meeting our accelerated goal of reaching 55 percent of all households by 2023,” he said.
The fiber internet company rolled out more than 650,000 ports in the fourth quarter, bringing its total port deployment to 2.4 million in 2021. It also reported quarterly net adds of 115,000, bringing its total residential subscriber count to 1.7 million by year-end, hitting the high end of management guidance.
As of end-2021, the Converge fiber backbone reached 103,000 kilometers, passing through 495 cities and municipalities across the country.
Converge also reported that it is on track to reach its adjusted goal of approximately 55% nationwide household coverage by 2023, two years earlier than promised during the IPO.
Meanwhile, Converge also reported that it is expected to spend approximately P26-28 billion in capital expenditures in 2022, which will include deepening of its network infrastructure throughout the country, as well as deployment of additional FTTH ports nationwide.
The bulk of its 2022 capex will be allotted to fund the expansion of its access network nationwide and further extension of its fiber backbone.
The company spent P25 billion for capex last year.
Its other key capex initiatives in FY 2022 will include selected investments into international subsea cables and enhancement of our IT systems. (With PR)