Local Telco Provider Grows Income by 8.5% in First Half of the Year
Converge ICT Solutions shares that their net income has grown 8.5% to PHP 4.3 billion from January to June. Here’s how it achieved this level of growth.
Earning a massive net income is one of the main objectives of any company, so it’s necessary to monitor the earnings frequently. That way, it will be easier to track growth and the overall appeal that the business has for investors. Tracking net income is also important because it’s a business metric that represents the money that can be distributed to shareholders or saved for the company’s future expenses.
In the Philippines, companies often track their net income by the month of June so they can monitor how much their brand has grown in the first half of the year.
And just recently, Converge Philippines—one of the leading telco companies in the country—shared its financial reports, which showed an increase both in their net income and revenue. Here are more details about it.
Company Growth from January to June
Converge Information and Communications Technology Solutions, Inc. posted that they earned PHP 17.4 billion in revenue and PHP 4.3 billion in earnings. This showed an 8.1% increase in revenue and an 8.5% growth in net income in comparison to their performance last year.
Moreover, the company brought in a total of 1,969,663 subscribers by mid-year. It is said that 1,915,502 of these are postpaid subscribers, while the remaining 54,161 are prepaid subscribers.
The company achieved this feat by deepening its presence in new areas like North Luzon, Visayas, and Mindanao. They also had new products that were accessible even to low-income households. Among the products that emerged successful is their fiber-to-the-home plan called Surf2Sawa.
Converge notes that its enterprise revenues also grew from PHP 1.969 billion to PHP 2.486 billion, due to the strong overall revenue growth of all subsegments–small and medium enterprises (SMEs), large enterprises, corporates, and wholesale.
Overall, it can be said that SMEs continue to lead the company’s year-over-year (YoY) revenues as they increased by 41.5% all in all, including a 28.6% increase in the wholesale segment of the whole year.
Overall Company Status
In a virtual press briefing, Converge CEO and Co-Founder Dennis Anthony Uy announced, “We sustained our growth. Our revenues are steadily improving, on a low double-digit but very stable, and we’ll continue growing in the next two years.”
Looking at what the company has achieved, it’s evident that it maintained its strong balance sheet and cash flows—achieved through ample liquidity. More importantly, they have also managed to reduce their debt, as they reduced their balance drastically.
Internet use is one of the essentials that Filipinos look for nowadays. With the high demand for the said service and by having it available at a lower price, it appears that what the company is doing effectively reflects on its earnings. Should they continue to maintain their current practices or introduce more innovations in the future, the telco industry in the country might be more progressive and competitive.