Converge Posts 5% Revenue Growth and 22% Surge in Net Income in 2023 Amid Accelerated Fiber Internet Subscriptions
An important company in the fiber internet and technology industry, Converge ICT Solutions Inc. (PSE: CNVRG), reported excellent results for 2023. The company's consolidated sales went up 5% year-over-year to P35.4 billion, and its net income went up a noticeable 22% to P9 billion. This was due to more people wanting fiber internet services.
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| Converge Posts 5% Revenue Growth and 22% Surge in Net Income in 2023 |
The company got a massive 32% more residential users for its fiber plans, adding a total of 284,000 new customers. This was the biggest increase in fiber net adds in the industry for the year. The number of consolidated net additions went up by 13.4% year over year, making Converge the only big operator to see growth.
Dennis Anthony Uy, CEO and co-founder of Converge said, "Our newly launched products Surf2Sawa (S2S) and BIDA Fibre, along with our flagship brand FiberX, have continued to hold strong throughout 2023."
S2S and BIDA Fibre added a record number of net new customers in Q4 alone. By the end of 2023, the total number of users will have reached nearly 175,000, well above the company's goal of 120,000. The FiberX name also kept growing quickly, and now it has 1.8 million subscribers.
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Because of how well the company did, it gained nearly 80,000 net new users in Q4 2023, which is 31.8% of the total net additions for the whole year.
In 2023, Converge added more than 2.1 million subscribers, with over 2 million regular subscribers and 114,000 prepaid subscribers. The company also won several awards at the Ookla Speedtest Awards. In the second half of 2023, it was named the Philippines' Fastest Internet Service Provider.
The company's industrial business also saw strong growth, rising from P4.3 billion to P5.1 billion, or 20% year-over-year.
"Our outstanding performance shows how dedicated we are to financial discipline. This has helped us become the leaders in our industry in 2023 in terms of revenues, ROIC, and EBITDA margins." "This success gives us the fuel to speed up our growth and give our stakeholders more value," said Maria Grace Uy, President and Co-Founder of Converge.
The company said its combined EBITDA margin was 61%, and its EBITDA of P21.5 billion was up 11.2% year over year. The company met its EBITDA goals for 2023 thanks to innovative cost management. Converge is still the leader in its field, with a 16.3% return on invested capital (ROIC).
