Converge ICT Solutions Inc. reported strong financial performance for the first quarter of 2024. Consolidated revenues reached PHP9.5 billion, a 10.4% increase year-on-year, while net income jumped 17.5% to PHP2.6 billion compared to the same period last year.
The growth is attributed to Converge’s continued success in providing Filipinos with reliable and high-speed fiber internet. The company’s flagship “FiberX” and “FiberXtreme” plans cater to a wide range of residential needs, offering varying data allowances and speeds. Converge’s flanker offerings, such as “flexiBiz” and “Air Internet,” provide flexible and affordable options for budget-conscious customers. This diverse product portfolio has been instrumental in attracting new subscribers and driving residential revenue growth.
On the enterprise side, Converge offers a comprehensive suite of fiber broadband solutions tailored to the needs of businesses of all sizes. These solutions include dedicated internet access, data center connectivity, and cloud services. The company’s strong focus on customer service and its commitment to delivering a superior user experience has also contributed to its positive performance in the enterprise segment.
“This strong showing in the first quarter of 2024 puts us solidly on track to reach our revenue guidance for the year. We’re confident we can sustain this steady growth for the rest of the year, especially as we lean into our mass market offerings,” according to Maria Grace Y. Uy, Converge President and Co-Founder.
Enterprise revenues also grew steadily at 10.5% year-on-year, reaching PHP1.4 billion in Q1. Converge sees further growth potential in this segment with upcoming product launches targeting the Micro, Small, and Medium Enterprises (MSME) sector, alongside planned service expansion to the public sector.
“We continue to see rising demand for our fiber products, both prepaid and postpaid. At the same time, we are not sitting still – we are diversifying our potential offerings to go beyond connectivity through cooperation with global tech companies, such as the recently concluded Memorandum of Understanding with NAVER Cloud of South Korea,” said Converge CEO and Co-Founder Dennis Anthony Uy.
The company also improved its residential customer retention, with consolidated churn reaching a record low of 1.82% — the lowest since the fourth quarter of 2022. This marks a significant improvement in Converge’s ability to retain its subscriber base. A low churn rate indicates customer satisfaction and loyalty, which is essential for sustained business growth. Converge’s churn management strategy likely involves a combination of factors, such as providing excellent customer service, offering competitive rates and service packages, and addressing customer concerns promptly and efficiently. By effectively managing churn, Converge can focus its resources on acquiring new customers and expanding its market share.