MANILA – The Philippines’ only pure-play high-speed fixed broadband operator, Converge Information and Communications Technology Solutions, Inc. (PSE: CNVRG) ended 2024 with a total of 2,563,458 residential subscribers. This is comprised of 2,272,827 postpaid subscribers and 290,631 prepaid subscribers.
Residential and enterprise segments achieved double-digits revenue growth with maintained momentum during the fourth quarter – leading to a slight overachievement of full-year guidance.
Consolidated revenues grew by 14.8 percent in FY2024 to P40.6 billion – reinforcing the Company’s position as the country’s fastest-growing fixed broadband service provider.
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.
In FY2024, enterprise revenue grew by 21.9 percent year-on-year to P6.2 billion. Small and medium enterprises (SME) continued to be the fastest-growing subsegment with 30.9 percent revenue growth with all subsegments maintaining their double-digit growth.
The Company’s EBITDA grew by 14.2 percent to P24.6 billion in FY2024, representing an EBITDA margin of 60.5 percent, from P21.5 billion in FY2023 or 60.9 percent EBITDA margin. Converge maintained its industry-leading Return on Invested Capital (ROIC) at 18.3 percent from 18 percent last quarter. This is a result of the company’s distinguished performance during the year and disciplined approach in deploying capital to expand its fiber network and improve its overall services.
Net income after tax grew by 18.8 percent to P10.8 billion in FY2024 from P9.1 billion in FY2023, resulting in a net income margin of 26.6 percent for FY2024, higher than the FY2023 net income margin of 25.7 percent.
Converge has been able to maintain its strong balance sheet and cash flows with ample liquidity and gearing comfortably within bank covenants.
The company’s net debt position (as measured by total financial debt less cash and cash equivalents and short-term cash placements) decreased from P14.1 billion as of September 30, 2024, to P12.5 billion as of December 31, 2024. The company repaid a portion of its financial debt, reducing the balance to P29.5 billion. PR