Converge ICT Solutions Inc. has set an ambitious revenue growth target of 14-16% for 2025, driven by the rapid expansion of its prepaid fiber services, the resurgence of its enterprise business, and major investments in data centers and subsea cable systems.
The company ended 2024 on a strong note, reporting a 19% increase in net income, reaching PHP10.8 billion, while consolidated revenues grew by 15% to PHP40.6 billion. In light of this performance, the Converge Board of Directors has approved a PHP0.43 per share cash dividend, payable on 16 April 2025, with a record date of 02 April 2025.
Strategic Investments for Sustained Growth
Converge Chief Financial Officer Robert A. Yu expressed confidence in maintaining the company’s momentum, stating that Converge aims for a 14-16% consolidated revenue growth rate in 2025, with an EBITDA margin of 61-62%. To support this growth, the company has earmarked a capital expenditure (CAPEX) budget of PHP20-25 billion. This budget will primarily fund payments for two major subsea cable systems, Bifrost and SEA-H2X, along with the development of two new data centers. In addition, the company will invest in network redundancy and port expansion to enhance digital infrastructure and ensure seamless connectivity for its customers.
Expanding Fiber Prepaid & Enterprise Solutions
The growth of Converge’s affordable prepaid fiber services has been a key driver of its success. Surf2Sawa and BIDA Fiber, the company’s prepaid fiber offerings, saw a remarkable 150% increase in subscribers in 2024. With this strong market adoption, Converge remains optimistic about reaching its mid-term goal of 4 million subscribers by 2027.
Meanwhile, the Enterprise segment is expected to see further growth in 2025, with the launch of Converge Content+, an internet-based TV solution designed for the hospitality industry. The company is also set to expand its business-to-business (B2B) technology collaborations, strengthening its suite of digital solutions for corporate clients.
Data Center & Subsea Cable Expansion
A key pillar of Converge’s expansion strategy is its data center business, which is poised to play a crucial role in meeting the growing demand for content delivery and cloud services. The Caloocan Data Center is designed to accommodate 300 racks, supporting the company’s internal operations and improving service reliability. Meanwhile, the Pampanga Data Center, with a 1,200-rack capacity, is expected to cater to the long-term requirements of both residential and enterprise customers, ensuring a robust digital infrastructure for future growth.
In addition to data center expansion, Converge is set to enhance its international connectivity with the upcoming Bifrost Cable System and Southeast Asia Hong Kong-Hainan Express (SEA-H2X) Cable System. These subsea cable projects are not only designed for network redundancy but also aim to elevate broadband performance and expand global connectivity. With these strategic investments, Converge is positioning itself as a leading fiber broadband provider in the Philippines, driving innovation and digital transformation across various industries.