Fixed broadband internet service provider Converge Information and Communications Technology Solutions Inc. saw its earnings grow more than double in the first nine months of 2021 amid continued strong demand for internet connectivity and reduced tax rates.
In a regulatory filing on Thursday, Converge ICT reported a net income of P5.198 billion in the January to September period, more than double compared to the P2.190 billion posted in the same period in 2020.
The strong bottom line growth resulted from continued strong subscriber take-up as consolidated revenues grew 76.4% year-on-year to P18.831 billion from P10.677 billion.
The top line increase was driven by a 75% year-on-year jump in subscriber base and a sustained P1,346 residential average monthly revenue per user.
Converge ICT’s residential subscribers grew to 1,576,759 as of September 30, 2021 from 900,531 as of September 30, 2020.
Likewise, the company’s enterprise revenues rose 8.5% to P2.457 billion from P2.264 billion a year earlier.
Apart from the strong revenue stream, Converge ICT also benefited from the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law, which effectively reduced the company’s corporate income tax rate to 25% from 30%.
During the period, the company completed its North Luzon fiber optic loop that ensures improved reliability and availability of service in the region. This loop makes the network in the region completely redundant, which ensures continued service in case there’s an interruption in one part of the network.
“Amid the continued community quarantine restrictions and lockdowns, Filipinos consume more and more bandwidth at home for work, school, and entertainment. Thus, we aim to cater to the growing demand across the country, including North Luzon,” Converge CEO Dennis Anthony Uy said. — VBL, GMA News
Converge ICT net income more than double in Jan-Sept
Source: News Panda Philippines
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