Fixed broadband internet service provider Converge Information and Communications Technology Solutions Inc. saw profits more than double in the first nine months of 2021 amid continued strong demand for internet connectivity and reduced tax rates .
In a regulatory filing Thursday, Converge ICT reported net profit of 5.198 billion pesos for the period January to September, more than double the 2.190 billion pesos posted during the same period in 2020.
The strong growth in net income is the result of a strong subscriber subscription rate, with consolidated revenues increasing 76.4% year-over-year to 18.831 billion pesos, from 10.677 billion pesos.
The increase in revenue is driven by a 75% year-over-year jump in the subscriber base and a sustained average residential monthly income of P1346 per user.
The number of residential subscribers of Converge ICT increased to 1,576,759 as of September 30, 2021, compared to 900,531 as of September 30, 2020.
Likewise, the company’s business income rose 8.5 percent to 2.457 billion pesos from 2.264 billion pesos a year earlier.
Besides the strong source of income, Converge ICT has also benefited from the Business Recovery and Tax Incentives for Businesses Act (CREATE), which effectively reduced the company’s corporate tax rate to 25% against 30 %.
During the period, the company completed its fiber optic loop in northern Luzon which provides improved reliability and availability of service in the region. This loop makes the region’s network completely redundant, which guarantees continuous service in the event of an interruption of part of the network.
âAmid the continued restrictions and blockages of community quarantine, Filipinos are consuming more and more bandwidth at home for work, school and play. Thus, we aim to meet growing demand across the country, including northern Luzon, âsaid Dennis Anthony Uy, CEO of Converge. – VBL, GMA News