Converge ICT Solutions Inc. (PSE: CNVRG) reported a ₱8.90 billion net income for the nine months ended September 30, 2025, up 8.4% year-on-year, as the fiber broadband provider sustained strong growth across both residential and enterprise segments.
Total revenues climbed 10.1% to ₱33 billion, with residential sales contributing ₱27.7 billion (+9.1%) and enterprise revenues reaching ₱5.2 billion (+16.2%). The company maintained its industry-leading EBITDA margin of 61.2%, generating ₱20.2 billion in EBITDA, up 10.6% from the same period last year.
Converge continued to strengthen its balance sheet, reducing total borrowings to ₱25.53 billion, down 14% from year-end 2024. Its Net Debt-to-EBITDA ratio stood at just 0.4×, while interest coverage reached 16×, reflecting strong financial discipline and liquidity.
Capital expenditures totaled ₱7.36 billion, focused on network expansion, customer premises equipment, and data center development. The company also committed ₱18.8 billion in supplier agreements to support future growth.
A major strategic milestone was the landing of the Bifrost trans-Pacific cable in Davao, where Converge owns and operates the cable landing station. The system is expected to be operational by year-end, enhancing international connectivity and latency for enterprise clients and hyperscalers.
Industry Comparison: Converge Leads in Margin and Growth
| Company | Revenue (₱B) | Revenue Growth | EBITDA (₱B) | EBITDA Margin |
|---|---|---|---|---|
| Converge ICT | ₱33.0B | +10.1% [corporate….rgeict.com] | ₱20.2B | 61.2% [corporate….rgeict.com] |
| PLDT Inc. | ₱144.9B | +2.0% [firstpacific.com] | ₱80.7B | 52.0% [firstpacific.com] |
| Globe Telecom | ₱121.7B | −1.9% [telecomlead.com] | ₱64.2B | 52.8% [edge.pse.com.ph] |
Converge outpaces its larger peers in both revenue growth and margin efficiency, reflecting its focused fiber-only model and disciplined cost structure.
Dividend Yield Update
Converge declared a ₱0.43 per share cash dividend in April 2025. Based on the recent share price of ₱12.60, this translates to a dividend yield of approximately 3.41%. The company’s payout ratio stands at around 19.6%, balancing shareholder returns with reinvestment for growth.
In addition to dividends, Converge repurchased ₱373 million worth of treasury shares year-to-date, reinforcing its commitment to capital returns.
Outlook and Watch-Items
While performance remains strong, the company flagged rising impairment provisions and aging receivables, particularly in the enterprise segment, as areas for continued monitoring. Working capital absorption also softened operating cash flow year-on-year.
With its robust margins, low leverage, and expanding enterprise offerings, Converge remains a standout in the Philippine broadband sector, positioning itself for sustained growth and shareholder value creation.
Accuretti Systems 
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