Converge Records 11.5% Revenue Growth and Leads Industry in Subscriber Acquisition for Q1 2023
Converge ICT Solutions Inc., a leading fiber broadband provider, reported an 11.5% rise in consolidated revenue to P8.6 billion from January to March 2023, compared to the same period last year. The company's strong subscriber acquisition and growing enterprise business are credited with this expansion.
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| Converge Records 11.5% Revenue Growth and Leads Industry in Subscriber Acquisition for Q1 2023 |
Converge's residential subscriber base grew by 43,000 net additions, with 67% postpaid and 33% prepaid fiber subscribers. The company had 1.9 million postpaid and roughly 30,000 prepaid fiber-to-the-home (FTTH) members as of Q1 2023.
Converge's enterprise revenues grew at their fastest rate since 2020, increasing 32.4% year on year to P1.2 billion in Q1 2023. Strong performance across all subsegments, including SMEs, large companies, corporates, and wholesale, drove this development.
"Our commitment to providing world-class broadband services, combined with strategic investments in our network infrastructure, has enabled us to post positive first-quarter results," stated Converge Co-Founder and CEO Dennis Anthony Uy. Converge is well-positioned to be customers' chosen internet service provider as we continue to focus on unserved and underserved communities."
Converge generated a quarterly EBITDA of P5.2 billion in Q1 2023, a 13.5% increase over the previous year and a combined EBITDA margin of 59.9%. The company's net income after tax increased by 11% to P2.2 billion, resulting in a 25.1% net income margin.
Converge hopes its expansion into the Visayas and Mindanao areas will provide more chances for subscriber development in the coming years. In addition, the corporation is expanding its presence into lower-income markets by providing more economical solutions such as prepaid fiber internet.
Converge intends to fully implement its prepaid service, Surf2Sawa, by June 2023, targeting around 9.3 million lower-income households. Surf2Sawa is a prepaid FTTH service with several top-up choices, including P700 for 30-day unlimited connectivity, P380 for a 15-day subscription, P200 for a seven-day unlimited internet subscription, and P50 for a one-day subscription.