Converge is reporting another milestone: the telco has announced that it has managed to nab around 1,355,079 residential subscribers as of June 30, 2021, a massive leap from its 731,563 subscribers last year. That represents a growth of around 85% more YoY from 2Q2020.
Converge’s impressive subscriber numbers are a result of a number of its efforts, namely expanding to different provinces and municipalities outside of Metro Manila. The company now has an end-to-end nationwide backbone reaching from Northern Luzon to Mindanao.
The increase in subscribers helped Converge capture 47% of the market share in the fixed broadband segment. Unsurprisingly, 95% of subscribers in the second quarter of 2021 were first time fixed broadband users according to Converge.
The fast-growing broadband company was able to cover 53 cities and municipalities just this first half of 2021. Provinces including Ilocos Norte, Cebu, and Davao are now serviceable. As of now, the company’s network has reached over 400 cities and municipalities nationwide. This translates to 80,500 kilometers of fiber optic cable across the country. Soon, Converge will have a data center in Cebu to help them in their aggressive expansion nationwide.
“We’ve already hit the ground running when we had our soft launch in Cebu last November. Considering that we’ve only been operating in Mandaue and Cebu cities on a limited basis, we’ve already signed on thousands of subscribers and established partnerships with SME and Enterprise clients,” said Converge CEO and Co-Founder Dennis Anthony Uy.
All of these gave Converge a net income of twice as much as last year. Net income margins grew from P1.259 million in the first half of 2020 to P3.252 million in the first half of 2021 or from 19.4% to 27.6%. The implementation of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law, which reduced the corporate income tax rate to 23% may have played a significant factor in the company’s income progress. Be that as it may, Converge is still showing a very strong financial performance. In fact, it has an industry-leading trifecta with 81.5% year-on-year (YOY) revenue growth from the first half of 2020 to the first half of 2021, 55.1% EBITDA Margin, and 21.6% ROIC.
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