earnings reports

Converge profits more than double to P7.16 billion in 2021

Aika Rey
Converge profits more than double to P7.16 billion in 2021

DATA CENTER. Converge ICT Solutions CEO Dennis Anthony Uy at the telco's data center.

Converge ICT Solutions

Converge ICT Solutions CEO Dennis Anthony Uy says the Earth station for the telco's planned satellite broadband venture has been completed

MANILA, Philippines – Converge ICT Solutions posted 111% growth in net income to P7.16 billion in 2021 from P3.38 billion in 2020.

The fiber company’s triple-digit growth was attributed to its regional expansion, as it entered the Visayas and Mindanao markets. Subscribers jumped 63% to nearly 1.7 million.

Converge’s consolidated revenues also climbed to P15.97 billion, 86% higher than 2020’s P8.59 billion. 

Residential revenues sustained the telco’s momentum, almost doubling to P23.13 billion in 2021 from P12.62 billion in 2020.

Its enterprise business, meanwhile, grew 10.7% year-on-year, driven by customers from the small and medium enterprises segment which nearly tripled in 2021.

For 2022, Converge chief financial office advisor Matthias Vukovich said the telco is eyeing P26 billion to P28 billion in capital expenditures. A huge chunk of this, he said, will be spent on their backbone, as Converge plans deeper market penetration in the regions. 

Converge will also be investing in subsea cables and in the enhancement of its IT systems.

It expects to grow its subscriber base past the 2-million mark.

Converge chief executive officer Dennis Anthony Uy reiterated the importance of launching their planned satellite broadband business, in a bid to serve far-flung areas that fiber cannot reach.

“In terms of satellite, it’s very important to us, especially a lot of mountains and areas, you cannot reach it by fiber. This is to complement our rollout,” Uy said.

According to Uy, Converge’s Earth station in Pampanga has been completed – the ground segment of space and satellite communications systems. The telco is just waiting to roll out satellite broadband in 2,000 public schools.

Uy previously mentioned the telco’s potential partnership with tech mogul Elon Musk’s SpaceX.

SpaceX operates Starlink, which has a constellation of low Earth orbit satellites. – Rappler.com

Aika Rey

Aika Rey is a business reporter for Rappler. She covered the Senate of the Philippines before fully diving into numbers and companies. Got tips? Find her on Twitter at @reyaika or shoot her an email at aika.rey@rappler.com.