Converge Information and Communications Technology Solutions, Inc. recorded consolidated revenue growth of 13.2% in 1Q2025 to P10.8Bn – reinforcing the Company’s position as the fastest-growing fixed broadband and technology services provider in the Philippines.
The residential business grew to P9.1Bn during the same period, representing 11.5% year-over-year growth.
Converge ended March 2025 with a total of 2,701,336 residential subscribers, comprised of 2,340,208 postpaid and 361,128 prepaid subscribers.
FiberX continued to have strong customer take-up. BIDA Fiber and Surf2Sawa recorded 24,102 and 70,497 respective net adds in the first three months of 2025.
During the first quarter (1Q) of 2025, enterprise revenue grew by 22.9% year-on-year to P1.7 billion. Along with strong double-digit growth from all enterprise subsegments, revenues from the Wholesale subsegment grew by 54.0% from new customers and service innovations.
Fiber port utilization reached 34.4% as of March 2025, with almost 5.4 million fiber ports still available for service. This shows that Converge is still well-positioned to capitalize on the industry’s growth momentum in existing service areas.
The Company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 14.8% to P6.7Bn in 1Q2025, representing an industry-leading EBITDA margin of 62.0%, from P5.8B in the first quarter of 2024 or 61.1% EBITDA margindue to prudent cost management and improved operating efficiency. Similarly, the Company maintained its industry-leading Return on Invested Capital (“ROIC”) at 18.4% from 18.3% last quarter.
Net income after tax grew by 18.3% to P3.0B in 1Q 2025 from P2.6B in 1Q 2024, resulting in a net income margin of 28.0% for 1Q2025, higher than net income margin of 26.7% during the same period last year.
Converge has been able to maintain its strong balance sheet and cash flows with ample liquidity and gearing comfortably within bank covenants. As of March 31, 2025, the Company’s outstanding borrowings stood at ₱28.3B from ₱29.5B as of December 31, 2024 while net debt position (as measured by total financial debt less cash and cash equivalents and short-term cash placements) decreased from P12.5B as of December 31, 2024 to P10.3Bn as of March 31, 2025. The Company’s debt service coverage ratio (“DSCR”) was 3.2x, the net debt-to-total equity was at 0.2x, and gross debt-total equity was at 0.5x – well within the required financial covenants from its debt facilities. Its Net Debt-to-EBITDA ratio, based on the last twelve months’ EBITDA from April 2024 to March 2025, stood at a conservative 0.4x. This low leverage level, supported by robust cash flow generation, provides Converge with significant financial flexibility to execute capital expenditure plans and capitalize on the growing demand for high-speed fixed broadband infrastructure in the Philippines.
Total cash CAPEX as of 1Q2025 amounted to P2.6Bn for expansion and redundancy projects including more than 26k fiber ports deployed and almost 400km of backbone, with the turnover of turnkey projects expected to be completed during the third and fourth quarters of this year. NLMonitor