Converge, the country’s pure end-to-end fiber internet provider, may just be getting a boost from the solid performance of its FiberXers in the Philippine Basketball Association (PBA) as it posts P24.5-billion in revenues from January to September this year.
In a media conference today, the publicly-listed firm reported a 30-percent increase in earnings against year-ago levels with its residential subscriber base being complemented by the enterprise segment.
At solo second spot in the on-going PBA Commissioners Cup with 7-2 slate and a growing fanbase, the firm might is just doing very well on and off the court as Converge reported an increase in fiber coverages not just in Luzon but also Visayas and Mindanao.
“Our fiber digital highway is now running around 600,000 kilometers, reaching our northernmost provinces in the Ilocos and Cordillera regions up to Palawan and the Bicol region, and the major islands in the Visayas and key cities in Mindanao. And it’s not yet over. Our mission is to reach the underserved areas in the country with our world-class fiber infrastructure,” said Converge CEO Dennis Anthony Uy in a statement.
Converge has deployed more than 411,000 Fiber to the Home (FTTH) ports nationwide in the third quarter of 2022 alone. The record coincided with FiberXers finishing impressively with a quarterfinals appearance in the PBA Philippine Cup after only few months since taking over the Alaska Aces franchise.
For the same period, the squad has since gone on a “bench upgrade” with new headcoach Aldin Ayo acquiring sweet shooting Aljun Melecio and Kevin Racal and versatile import Quincy Miller, an NBA veteran.
With a 6-game winning streak, the longest this conference, the FiberXers are hoped to boost this marketing investment in the PBA where the league is seen by millions on TV and on the internet. It dealt losses to powerhouse teams Meralco Bolts, San Miguel Beermen and telco industry rival TnT Tropang Giga.
“The primary reason for supporting PBA was to help us promote ourselves nationwide. This footprint that expands almost daily. This has allowed us to be more known to people in a macro way,” said Jesus Romero, chief operating officer.
Romero added that the PBA stint is working for the promotion of Converge
“This allowed us to also maximize our spending because this single investment makes us well known to anyone in the Philippines,” he added.
In total, Converge now has more than 6.7 million fiber ports, making it the largest fiber infrastructure network in the Philippines. This puts Converge’s household coverage at 53%, on track to reach the accelerated target to cover approximately 55% of households in the Philippines, a “basketball crazy country” by 2023.
At the end of September 2022, Converge reported over 1.84 million residential subscribers, a 16% increase from the same period last year.
For her part, Converge President and Co-Founder Maria Grace Uy reported the EBITDA (earnings before interests, taxes, depreciation, and amortization) of
P14.4 billion in the first nine months of the year, 39% higher from the previous year. As a result, the Company’s consolidated EBITDA margin reached an all-time high of 59.0% during the nine-month period.
“Despite the macroeconomic pressures experienced throughout the year, Converge has continued to achieve solid financial growth. This was driven mainly by the growth in our subscriber base. The revenue of our Residential Business during the first nine months of the year increased by 31% compared to the same period in 2021 while our Enterprise Business achieved 27% year-on-year growth,” said Grace Uy.