Converge Defies Telco Slump with 9.6% Profit Growth

Why It Matters

Converge's outperformance highlights the profitability of aggressive fiber expansion in underserved regions, setting a benchmark for the Philippine telecom industry.

Key Takeaways

• Net income rose 9.6% to P11.9 billion
• Revenue grew 10.2% to P44.8 billion
• Residential subscribers hit 2.98 million, +428k
• Enterprise revenue up 20.3% to P7.4 billion
• Capex slated P18‑23 billion for 900k new ports

Pulse Analysis

The Philippine broadband market is entering a pivotal phase as demand for high‑speed connectivity outpaces traditional mobile services. Converge ICT Solutions, a pure‑play fiber provider, has capitalised on this shift by extending its network into previously underserved provinces. Its aggressive rollout strategy not only fuels subscriber growth but also pressures legacy operators, who remain constrained by legacy copper infrastructure and regulatory hurdles.

Financially, Converge distinguished itself in 2025 by delivering a 9.6% profit increase to P11.9 billion, while peers PLDT and Globe reported double‑digit profit declines. The firm’s EBITDA margin of 60.4% and a 17.7% return on invested capital underscore the efficiency of its capital deployment. Residential services contributed the bulk of revenue, yet enterprise sales surged over 20%, reflecting broader corporate digitalisation trends across the archipelago.

Looking ahead, Converge plans to invest up to P23 billion in 2026, targeting the deployment of approximately 900,000 additional fiber ports. This expansion will deepen coverage in Visayas and Mindanao, regions that remain largely unserved by high‑speed broadband. For investors, the company’s disciplined capex approach, combined with robust subscriber acquisition, positions it to capture a larger share of the growing Philippine fiber market and potentially set a new profitability standard for the sector.