Converge to expand network with P2.64Bn budget
MANILA, PHILIPPINES — Broadband provider Converge ICT Solutions seeks to strengthen its infrastructure projects this year as it allocates a Php2.64 billion (US$48.2 million) budget from its recent bond issuance.
In an interview with The STAR, Converge founder and CEO Dennis Uy said they “prudently” continue expanding to new service areas across the country to cover at least 55% of households by 2023.
Before 2022 ended, Converge started servicing new areas in Mindanao, namely, Digos, Davao del Sur, Monkayo, Davao de Oro, and Sarangani.
“We have frontloaded investments on our digital infrastructure, and it is in place. Our backbone connecting all the major islands is laid out [so] that we can expand into key provinces, municipalities, and cities,” Uy said.
In a regulatory filing with the Philippine Stock Exchange, Converge disbursed 73% or Php7.21 billion (US$131 million) of the Php9.85 billion (US$180 million) in net proceeds it raised from the recent fundraising activity.
A total of Php2.26 billion (US$41.3 million) of the net proceeds were spent in Q2 2022, Php2.66 billion (US$48.6 million) in Q3, and Php2.29 billion (US$41.8 million) in Q4.
Broken down, Converge utilized Php5.46 billion (US$99.8 million) for capital expenditures (CapEx) and another Php1.76 billion (US$32.2 billion) for general corporate purposes.
For 2023, Converge plans to cut its CapEx in line with industry trends, especially as it tries to maximize for the meantime the fiber ports it acquired in the past years.
