Converge anticipates second-half growth rebound on fiber and enterprise expansion
Key Takeaways
- •Converge expects a second-half growth recovery driven by continued fiber customer sign-ups and investments in its enterprise business, according to Chief Finance Officer Robert A. Yu.
- •Second-quarter attributable net income fell 15.7% to P2.47 billion as gross expenses rose 14.86%, outpacing the 2.46% increase in gross revenue.
- •The company cut its 2026 revenue growth guidance to 4%-6% from the previous 10% following slower second-quarter growth and economic uncertainties.
- •First-half enterprise revenue climbed 15.24% to P3.93 billion, while the much larger residential segment grew only 0.82% to P18.52 billion.
- •Converge spent P5.7 billion in cash capital expenditures in the first half against a full-year 2026 budget of P17 billion to P20 billion.
Converge ICT Solutions, Inc. expects growth to rebound in the second half of the year as it continues to sign up customers for its fiber platform and expands its enterprise business.
"We are still adding on customers on our fiber platform, and we do expect that growth… But in addition to that, we have kept on investing in our enterprise business, both on regular corporate and wholesale," Converge Chief Finance Officer Robert A. Yu told a news briefing on Thursday.
Converge is a Philippine fiber broadband provider whose shares trade on the local bourse, the Philippine Stock Exchange. It ranks among the country's largest fixed-broadband operators, competing in a market that also includes the fiber businesses of telecommunications carriers PLDT, Inc. and Globe Telecom, Inc.
The outlook follows a weaker second quarter. Converge reported a 15.7% decline in attributable net income to P2.47 billion, as expenses grew faster than revenue during the period.
For the three months ended June, gross revenue rose 2.46% to P11.25 billion from P10.98 billion a year earlier, while gross expenses increased 14.86% to P7.65 billion from P6.66 billion.
Converge has revised its 2026 revenue growth guidance to 4% to 6%, down from the previous 10%, following slower second-quarter revenue growth and amid economic uncertainties.
For the first half, attributable net income fell 7.73% to P5.49 billion from P5.95 billion a year earlier.
Gross revenue increased 3.03% to P22.44 billion from P21.78 billion in the same period in 2025.
Residential revenue rose 0.82% to P18.52 billion and accounted for most of the company's revenue during the period, while enterprise revenue increased 15.24% to P3.93 billion from P3.42 billion. The contrast between the two segments underpins the strategy Mr. Yu outlined: the enterprise business — spanning regular corporate accounts and wholesale services — is growing far faster than the much larger residential base, which continues to provide the bulk of revenue.
Cash capital expenditures totaled P5.7 billion in the first half. The company has set a 2026 capital expenditure budget of P17 billion to P20 billion.
The coming months will show whether the fiber sign-ups and enterprise investments Mr. Yu cited translate into the second-half rebound management expects, with the revised 4%-6% guidance serving as the benchmark.
At the local bourse, shares in Converge gained 17 centavos, or 1.73%, to close at P10 apiece. — Ashley Erika O. Jose
