Leading fiber internet provider Converge ICT Solutions Inc. (PSE: CNVRG) more than doubled its net income to P7.2 billion in 2021 from P3.4 billion the previous year, growing by 111% on the back of record number of port rollouts, continued strong expansion of its residential subscriber base, and recovery of the enterprise business.
Converge reported on Thursday that it sustained its robust growth with total consolidated revenues reaching P26.5 billion last year, 69.2% higher than the P15.7 billion revenues posted in 2020.
“Our entry into Visayas and Mindanao contributed to our aggressive port rollout, and continued turn-in of subscribers in Luzon and existing markets pushed up our residential business revenues up by 83.2%. Our network has now passed 10.9 million homes and we’re covering around 42.5% of Philippine households. We’re confident of meeting our accelerated goal of reaching 55% of all households by 2023,” said Dennis Anthony Uy, CEO and Co-Founder of Converge.
The fiber internet company rolled out more than 650,000 ports in the fourth quarter, bringing its total port deployment to 2.4 million in 2021. It also reported quarterly net adds of 115,000 bringing its total residential subscriber count to 1.7 million by year-end, hitting the high end of management guidance.
“We sustained our industry-leading trifecta with another record financial performance in 2021,” said Converge President and Co-Founder Maria Grace Y. Uy, referring to the company’s 69.2% year-on-year revenue growth, 55.9% EBITDA margin, and 20.9% return on invested capital (ROIC), much higher than the average of broadband players in the Asia-Pacific region.
Uy noted that Converge also maintained its strong credit profile as reflected in the PRS AAA credit rating with Stable Outlook given by PhilRatings for its upcoming maiden bond issue. The proceeds of the bond issue will be used to partly fund its capital outlay requirements this year.
Converge announced that it has earmarked higher capital expenditures of P26 billion to P28 billion this year, with bulk allotted to fund the expansion of its access network nationwide and further extension of its fiber backbone. The company spent P25 billion for capex last year.
As of end-2021, the Converge fiber backbone reached 103,000 kilometers, passing through 495 cities and municipalities across the country.