Converge eyes 8-10% revenue growth this year on network expansion

CONVERGE ICT Solutions, Inc. is targeting a revenue growth of 8% to 10% this year, driven by a strategic network expansion into underserved markets in the Visayas and Mindanao.

The listed fiber internet provider reported a net income of P11.86 billion for 2025, representing a 9.7% increase from the P10.81 billion posted the previous year.

Total revenues for the period rose by 10.24% to P44.77 billion, up from P40.61 billion in 2024, bolstered primarily by its residential business, it said in a disclosure on Monday.

Residential business accounted for P37.33 billion of the total revenue, while the enterprise segment contributed P7.45 billion.

The company noted that small and medium-sized enterprises (SMEs) and wholesale subsegments also saw strong results due to an expanding customer base.

The company attributed its 2025 results to its “disciplined approach in deploying capital to expand its fiber network and improve its overall services.”

It also noted that these results “underscore the resilience of the company’s core operations and reinforce commitment to delivering consistent, long-term value.”

Converge has set a capital expenditure (capex) guidance of P18 billion to P23 billion. This follows a 2025 period where the company utilized P17.7 billion in cash capex, despite an original budget of P25 billion.

The 2026 budget is primarily earmarked for a network expansion program aiming to install 900,000 new ports in the Visayas and Mindanao regions, alongside investments in network reliability.

Converge Chief Operating Officer Benjamin B. Azada said that the company is looking beyond pure speed metrics, despite recording an average speed of 193.61 megabits per second in Metro Manila.

“Beyond these metrics of upload and download speeds, we are actively improving our network for increased reliability and consistency in performance, at the same time as we work on enhancing connectivity in select parts of the country,” he said.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 10% to P27 billion in 2025, maintaining a margin of 60.4%.

However, Converge expects EBITDA margins to settle slightly lower at 58-59% in 2026 as it increases spending on marketing, loyalty programs, and maintenance and repair.

Converge shares fell by 62 centavos or 4.49% on Monday, closing at P13.20 apiece. — Ashley Erika O. Jose