Connect with us

Hi, what are you looking for?


Converge ICT increases capex by 25% to P20B

By Arjay L. Balinbin, Senior Reporter

LISTED fiber internet provider Converge ICT Solutions, Inc. expects to spend P20 billion on its expansion efforts this year, as it targets to cover approximately 35% of the country’s households by December, a company official said.

“We invested P16 billion in 2020, and we plan to invest P20 billion or more this year,” Converge Chief Financial Office Advisor Matthias Vukovich said at a virtual press briefing on Thursday, referring to the capital expenditure (capex) budget for the year.

He said the budget will be used for the expansion of Converge’s backbone and the deployment of additional fiber-to-the-home (FTTH) ports.

“The budget for the backbone is approximately 30% of the P20 billion, which are primarily for Mindanao and the Visayas,” Mr. Vukovich added, noting that 50% of the budget will be used for its network in Luzon.

The remaining 20% of the capex will go to digitization initiatives.

Converge saw its net income for 2020 surge 78% to P3.39 billion from P1.91 billion in 2019.

Total revenues increased 71% to P15.65 billion from P9.14 billion.

Broken down, the company’s residential business contributed P12.63 billion to the total revenues, or 99% higher than P6.35 billion earned in 2019, while the enterprise segment’s contribution grew 9% to P3.02 billion from P2.79 billion.

The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) grew 76% to P8.22 billion from P4.67 billion, booking a margin of 52.5% from 51% in 2019.

Converge officials said the company is on track to achieve its target to cover about 55% of households in the country by 2025, noting that it deployed 1.5 million new FTTH ports last year, “more than 1.75 times the number of FTTH ports deployed in 2019.”

The company also reported that its residential subscriber base doubled last year, reaching about 1,038,000 subscribers by December from 530,000 by the end of 2019.

“As the home became both office and classroom amid the global pandemic, we further accelerated our fiber network rollout to deliver high-speed broadband connectivity to more Filipinos, reaching underserved and unserved areas in the country,” Converge Chief Executive Officer and Co-Founder Dennis Anthony H. Uy said.

The company expects sustained growth in its residential user base to 1.6-1.7 million by December this year, owing to high demand for broadband amid a pandemic crisis.

“Demand from enterprise customers is projected to accelerate in 2021, notably driven by an expected recovery of the SME (small and mid-size enterprise) segment, resulting in total expected consolidated year-on-year revenue growth of approximately 10% in 2021, subject to market recovery from COVID pandemic impact,” it added.

Converge ICT Solutions shares closed 1.83% lower at P17.18 apiece on Thursday.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



INFLATION in the first eight months stood at 4.4%, quicker than the central bank’s 4.1% average inflation forecast for 2021. — PHILIPPINE STAR/ MICHAEL...


By Kyle Aristophere T. Atienza, Reporter PHILIPPINE President Rodrigo R. Duterte’s political allies — at least those who are running for the country’s top...


The Balagtas Station of the Philippine National Railway Clark Phase 1 Project is currently under construction. Photo taken on June 14. — PHILIPPINE STAR/...


A SENIOR economist at the Asian Development Bank (ADB) said a local bourse’s program for micro, small, and medium enterprises (MSME) is key to...


GNPower Dinginin’s commercial run moved to Q3 2022 By Angelica Y. Yang, Reporter THE management of GNPower Dinginin Ltd. Co. (GNPD) said the timeline...


RATES of government securities on offer this week may move sideways or inch up as the dual-tranche offering of onshore retail dollar bonds (RDBs)...

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...


As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...


US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!