Firm expands fiber network, eyes full Cebu coverage.

FIBER internet provider Converge ICT Solutions Inc. is on track to achieve its goal of fully connecting Cebu Province to its fiber network.

“There are still some few towns that we haven’t reached yet. I think this year or next year all the towns and cities of Cebu will be covered, including the third and fourth-class municipalities. We want the whole island of Cebu to be covered by our expansion,” said Dennis Anthony Uy, chief executive officer and co-founder of Converge, during a media briefing on Thursday, March 20, 2025.

For 2025, Converge expects capital expenditures (capex) to rise to P20 to 25 billion, driven by major infrastructure projects—the subsea cable systems, new data centers and port expansion. Total cash capex in 2024 amounted to P9.3 billion.

“This 2025, Converge is positioning for the transformative year with a major plan ahead as we advance in our tech directions,” said Uy.

Uy said the Bifrost Cable System and the Southeast Asia-Hong Kong Express Cable System are set to go live this year, strengthening global connectivity and enhancing broadband capabilities for both residential and enterprise users.

Converge will also activate new data centers in Caloocan and Pampanga, supporting the growing demand for cloud and enterprise services. The Caloocan Data Center is designed to accommodate 300 racks, and Converge intends to use the facility for its own operations.

The listed company also plans to deploy 400,000 to 500,000 additional ports, with majority in Visayas and Mindanao, expanding its reach in underserved regions.

Full-year performance

Converge ICT Solutions has exceeded its fiscal year 2024 targets, posting 14.8 percent in revenue growth to P40.6 billion, surpassing its initial 12 to 14 percent guidance. The residential segment contributed approximately 85 percent of total revenues, reaffirming the company’s dominance in the broad-band market.

Earnings before interest, taxes, depreciation and amortization also rose by 14.2 percent, achieving a 60.5 percent margin, which exceeded Converge’s original 60 percent target. Net income after tax increased by 18.8 percent to reach P10.8 billion representing a net income margin of 26.6 percent.

Chief finance officer Robert Leo Yu said Converge is targeting 14 to 16 percent consolidated revenue growth for 2025, aiming to build on its strong 2024 performance. The company also projects an Ebitda margin of 61 to 62 percent, slightly higher than last year’s 60.5 percent.

Due to heightened capital investments, return on invested capital is expected to slightly decline to 16 to 17.5 percent, as Converge positions itself for long-term expansion and innovation.

Converge ended 2024 with a total of 2,563,458 residential subscribers. This is comprised of 2,272,827 postpaid subscribers and 290,631 prep-aid subscribers.

Residential business grew to P34.4 billion during the same period, representing 13.7 percent year-over-year growth. FiberX subscriber base grew by 196,419 during the year, 57.9 percent higher than the previous year. Bida Fiber and Surf2Sawa recorded 90,458 and 175,795 respective net adds in 2024, their first full year since their official product launches.

Enterprise revenue grew by 21.9 percent year-on-year to P6.2 billion. Small and medium enterprises continued to be the fastest growing subsegment with 30.9 percent revenue growth with all subsegments maintaining their double-digit growth. / KOC