Converge ICT Solutions Inc. said Thursday net income jumped 74 percent in 2020 as broadband subscribers exceeded 1 million.
The company said net income amounted to P3.38 billion last year from P1.94 billion in 2019.
It said fourth-quarter net income reached P1.9 billion, up 110 percent from P571 million in the same period in 2019.
Converge’s consolidated revenues grew by more than 71 percent to P15.65 billion last year from P9.13 billion in 2019.
Revenues from residential business doubled to P12.62 billion in 2020 from P6.35 billion in 2019, driven by a 96-percent year-on-year growth in subscriber base coupled with an improvement in residential average revenue per user.
Converge ICT had 1.038 million residential subscribers as of end-December, while the company deployed about 1.5 million new fiber-to-home ports.
“Converge has built a fiber network that’s ready to serve the expected sustained demand for quality high-speed broadband,” Converge chief executive Dennis Anthony Uy said.
“Our dream is to provide the majority of Filipinos with world-class internet services through our fiber network,” he said.
The company is spending P20 billion this year, up from last year’s P16 billion. The 2021 capex will be used for the expansion of its backbone and the deployment of additional FTTH ports to reach about 35 percent of household in the Philippines by December 2021.
“We expect that strong demand for reliable high-speed broadband will result in continuous growth of our residential subscriber base to approximately 1.6-1.7 million by the end of 2021,” Uy said.
“Similarly, we believe that enterprise represents a significant growth opportunity for Converge, and we plan to further penetrate this segment,” he said.
Uy said Converge was on track to reach its mid-term goal of 55-percent nationwide household coverage by 2025.