Converge ICT Solutions Inc. has reduced its 2025 earnings guidance, citing a shortage of personnel to perform network repairs and maintenance.
The company revised its full-year revenue growth forecast to a range of 10 percent to 12 percent from an earlier target of 14 percent to 16 percent.
“We softened our full-year guidance despite demand remaining strong. We had been anticipating churn levels would improve over the second quarter onwards. However, this is becoming challenging because of a lack of manpower,” Converge chief financial officer Robert Leo Yu said.
Yu noted that “fiber talent” was in high demand both locally and internationally. The company is trying to “refill our headcount as fast as possible” by improving compensation packages to “react to any fiber and any customer concerns,” he said.
Yu also attributed the revised forecast to delays in launching new enterprise solutions.
“Our new solutions on the enterprise side that we have been developing… are still in progress. As you know, these things take time and the sales cycles are longer,” Yu said.
The company reported a net income of P5.9 billion in the first half of the year, up 12.4 percent from P5.3 billion in the same period last year.
Consolidated revenues grew 11.6 percent to P21.8 billion from P19.5 billion.
Residential business grew 10.4 percent to P18.4 billion from a year ago.
Converge ended June 2025 with 2,819,569 residential subscribers, comprising 2,387,808 postpaid and 431,761 prepaid customers. The company noted “continuous demand” for its three core products: FiberX, BIDA Fiber, and Surf2Sawa.
Gross postpaid subscriber additions for the first half of 2025 reached 426,041.
Enterprise revenue grew 18.3 percent year-on-year to P3.4 billion from P2.9 billion in the same period last year.
The wholesale segment was the fastest-growing subsegment, with a 41.3 percent revenue increase due to a larger customer base.
Total cash capital expenditure for the first half of 2025 amounted to P4.2 billion. The company has a capex budget of between P20 billion and P25 billion for the year.
