CONVERGE ICT SOLUTIONS, Inc. has revised down its full-year revenue growth guidance to 10-12% from an earlier forecast of up to 16%, despite posting higher net income for the second quarter (Q2), citing delays in rolling out new enterprise solutions and constraints in manpower.
“We softened our full-year guidance despite demand remaining strong. We had been anticipating that churn levels would improve; however, this is becoming challenging because of a lack of manpower,” Converge Chief Finance Officer Robert A. Yu said during a briefing on Wednesday.
For the three months ending June, Converge’s attributable net income rose by 6.93% to P2.93 billion from P2.74 billion in the same period a year ago, mainly driven by higher revenues.
The company recorded combined revenue of P10.98 billion, up 10.02% from P9.98 billion in the same period last year, its financial statement showed.
For the six months ending June, Converge reported an attributable net income of P5.95 billion, marking an increase of 12.5% from P5.29 billion in the same period in 2024.
Consolidated revenue for the period grew by 11.58% to P21.78 billion from P19.52 billion in the comparable period last year.
Broken down, revenues from the residential segment boosted the company’s topline for the six months ending June, reaching P18.37 billion, while the enterprise business logged revenue of P3.41 billion.
As of end-June, Converge recorded a total of 2.82 million residential subscribers, composed of 2.39 million postpaid subscribers and 431,761 prepaid customers. Growth in the enterprise business is mainly driven by the wholesale segment, which became its fastest-growing subsegment with 41.3% revenue growth due to a larger customer base.
“We’re at an inflection point in our journey — from simply connecting people through fiber broadband to delivering digital-first, value-added solutions. Our transformation into a full-fledged techco is well underway, and this refreshed identity captures that momentum. It represents our charge to go from fiber to the future, a future where technology and humanity converge,” Converge President Maria Grace Y. Uy said in a media release.
The company previously expected its revenues to grow by up to 16% this year, banking on the industry’s broad underserved market as well as Converge’s new and well-engineered products.
However, the lack of manpower has become a challenge, making it harder for Converge to meet its target and service its growing customer base.
“We are seeing fiber talent continue to be in demand, not just locally but also internationally. We are trying to refill our headcount as fast as possible so we can respond to any fiber and customer concerns. On top of this, our new enterprise solutions are still in progress. As you know, these things take time and the sales cycles are longer,” Mr. Yu said.
Further, Converge said there would be no change in its capital expenditure (capex) guidance for the year, despite spending only P4.2 billion in the first half.
“No change in capex, as you know the bulk of our capex involves one-off items, including subsea systems and Bifrost, which are happening in the second half of the year, as well as our data center,” Mr. Yu said, noting that capex spending is usually lower in the first half.
For 2025, Converge previously announced a capital expenditure budget of up to P25 billion, primarily for subsea cable system payments and data center expansion.
At the local bourse on Wednesday, shares in the company declined by P1.32, or 7.59%, to end at P16.08 apiece. — Ashley Erika O. Jose
