Converge keeps growth outlook despite headwinds
Converge ICT Solutions Inc. still expects its revenues to grow this year despite soaring inflation and other economic headwinds slowing subscriber growth, particularly among lower-income households.
As of the third quarter, the Dennis Uy-led fiber provider’s subscriber base had grown to just 3.1 million from 3.09 million at the start of the year.
This marked a sluggish pace compared with the same period in 2025, when its subscriber base expanded to 2.93 million in the third quarter from 2.7 million at the beginning of the year.
Financially, Converge remained profitable in the first nine months, although its net income declined by 9.1 percent to P8.1 billion from P8.9 billion a year earlier.
At a briefing on Monday, the company acknowledged that persistent inflation and slower economic growth had squeezed Filipinos’ purchasing power, weighing particularly on demand for prepaid internet services.
Still, Converge expressed confidence that an improving consumer outlook and continued growth in its enterprise business could help it finish the year on a stronger footing.
“Where we see the heightened inflation and slower GDP (gross domestic product) growth affecting us is actually not so much in the FiberX side, where there’s still very strong demand, but actually in the acquisition and retention of our prepaid Surf2Sawa,” said Converge COO Benjamin Azada.
As such, Converge said it was maintaining its recalibrated financial targets for 2026.
These include revenue growth of 4 percent to 6 percent, down from an earlier projection of 10 percent, an earnings before interest, taxes, depreciation and amortization margin of 58 percent to 59 percent, and a return on invested capital target of 15.5 percent to 16.5 percent.
“At this point in time, we don’t see a need yet to make any adjustments,” said Converge chief financial officer Robert Yu.
Yu cited an improvement in consumer confidence between the second and third quarters, based on the Bangko Sentral ng Pilipinas’ consumer expectations survey, as one reason for the company’s cautious optimism.
He said Converge was also closely monitoring food and fuel prices, alongside the potential for further price increases among consumer goods companies.
