MANILA, Philippines – Earnings at broadband internet provider Converge ICT Solutions Inc. more than doubled in the first nine months of 2021 thanks to an increase in the number of subscribers to its fiber optic network services, as the pandemic has forced many Filipinos to continue working from home.
In an online briefing, company CEO Dennis Anthony Uy said Converge’s net profit was nearly $ 5.2 billion at the end of September 2021, or up more than double 136% from its earnings of $ 2.2 billion in the same period of 2020.
In addition to strong growth in its subscriber base, the company has also experienced a sustained recovery in its small and medium-sized business segment.
In the third quarter alone, Converge added a record number of nearly 280,000 subscribers, bringing the total number of residential subscribers to nearly 1.6 million, 75% more than the same period in 2020.
This was made possible as Converge reached peak levels in the distribution of its ports in over 650,000 ports in the third quarter.
“We have completed our national backbone, allowing us to expand into new areas in the Visayas and Mindanao, while continuing to go deep into the underserved areas in Luzon,” Uy said. “We have also increased our sales force so that we can serve a greater number of people with world-class fiber broadband connectivity.”
At the end of September 2021, Converge’s nationwide network reached over 9.6 million homes, allowing it to accelerate its goal of covering approximately 55% of Filipino households through 2023, two years before the original 2025 program announced when sold the stock to the public last year.
For this reason, the company’s consolidated revenues grew 76.4% year-on-year to £ 18.8 billion in the first nine months of 2021.
Revenues from the residential business grew 94.6% to P16.4 billion during the nine-month period. The average monthly residential revenue per user remained stable at P1.346.
On the other hand, Converge Business revenues grew 8.5% to P 2.5 billion, mainly from the SME segment, continuing the trend observed in the second quarter of 2021.
In the last quarter, Converge also completed its 1,800-kilometer-long 6 billion P6 submarine cable project with its final landing in Coron, Palawan, connecting the country’s main islands to its domestic fiber backbone.
Converge’s home fiber backbone now totals 90,000 kilometers, traversing approximately 440 cities and municipalities nationwide and introducing its broadband service to new markets including Iloilo, Cagayan Province and Cagayan de Oro City.
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