Lack of manpower may dampen Converge ICT H2 results

Converge ICT Solutions Inc. ended the first half with double-digit growth in net income, although a manpower issue could trigger a slowdown in its top line for the remaining quarters.

The company led by tycoon Dennis Anthony Uy said its earnings in the January to June period jumped 12.4 percent to P5.9 billion from P5.3 billion.

The group’s consolidated revenues likewise booked an 11.6-percent growth, hitting P21.8 billion from P19.5 billion.

While it anticipates sustained strong traction in the local market for the second half, Converge ICT has decided to trim its full-year revenue growth to 10 percent to 12 percent.

This came from the original forecast of 14 percent to 16 percent. “So we softened our full year guidance despite demand remaining strong.

We had been anticipating that the churn levels would improve over the second quarter onwards.

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However, this is becoming challenging because of a lack of manpower,” Converge ICT chief finance officer Robert Leo Yu said in a media briefing on Wednesday.