Leading fiber broadband and technology provider Converge ICT Solutions Inc. reported that its net income in 2024 went up by 19 percent over 2023 to P10.8 billion, and expressed confidence to maintain the same strong growth momentum this year.
In its report to the Philippine Stock Exchange, Converge said said the 2024 performance came after a strong 2024 consolidated income of P40.6 billion, up nearly 15 percent versus the previous year.
For 2025, the company sets a revenue guidance growth of 14-15 percent on sustained growth of its fiber prepaid, the resurgence of its Enterprise business, and its substantial investments in data centers and the subsea cable systems coming to fruition this year.
The Converge Board of Directors approved a regular cash dividend payment of P0.43 per share to be paid on April 16, 2025 with a record date of April 2, 2025. The P0.43 per share represents almost 30% or the higher end of the policy range.
“With the strong 2024 performance, we are looking to continue this with a comparable 2025. This year, we are targeting a 14-16% consolidated revenue growth rate with 61-62% EBITDA margin,” said Converge Chief Finance Officer Robert A. Yu during the company’s fourth quarter and full year 2024 briefing on March 20, 2025.
“To position us for sustained growth, we’ve allocated a CAPEX budget of P20-25 billion due to payments for two subsea cable systems namely Bifrost and SEA-H2X, as well as two data centers, on top of the port expansion and redundancy CAPEX earmarked for the year,” added Yu.
Surf2Sawa, the affordable prepaid offering of Converge together with BIDA fiber, has seen remarkable growth in 2024. Both BIDA Fiber and Surf2Sawa’s EOP subscriber base grew by approximately 150% during the year. With this growth, Converge is confident of hitting its mid-term goal of acquiring 4 million subscribers by 2027.
Moreover, the Enterprise business is poised to see a rally in 2025 as it consolidates its offerings to Philippine businesses, among which is the Converge Content+ an internet-basedTV solution catering to the hospitality industry. More technology collaborations are in the offing to beef up the Enterprise portfolio.
An emerging business unit of Converge, its data center business, is expected to come online. It has been expanding its network of digital hubs to prop up the massive demand for content and cloud services. Converge employs a multi-edge strategy where multiple smaller data centers are deployed closer to end-users to enhance data delivery.
The Caloocan Data Center is designed to accommodate 300 racks and will serve the company’s operational needs. On the other hand, its data center project in Pampanga, designed to accommodate 1,200 racks, is expected to meet the future requirements of both its residential and enterprise customers.
The company is also expecting the entering into service of its two subsea cables, the Bifrost Cable System and the Southeast Asia Hong Kong-Hainan Express Cable System. These are not just for redundancy, but will empower Converge to fully support the needs of its residential and enterprise customers and drive innovation across multiple sectors.
The integration of the new data centers along with the deployment of two subsea cable systems positions us to propel Converge Enterprise Business.
