Following an impressive 2024 where they expanded net income to almost 19% year-on-year and consolidated revenues increasing to almost 15%, Converge is optimistic with 2025, as they are looking at a 14-16% growth. Converge explains that this is feasible with the sustained growth of its prepaid fiber service, the resurgence of its Enterprise business, and its substantial investments in data centers and the subsea cable systems coming to fruition this year.
“To position us for sustained growth, we’ve allocated a CAPEX budget of Php 20-25 billion due to payments for two subsea cable systems namely Bifrost and SEA-H2X, as well as two data centers, on top of the port expansion and redundancy CAPEX earmarked for the year,” Converge Chief Finance Officer Robert Yu said during the company’s fourth quarter and full year 2024 briefing.
One of Converge’s biggest revenue drivers is Surf2Sawa and BIDA Fiber, both growing their subscriber base by around 150% in 2024. That being said, Converge is also optimistic of reaching 4 million subscribers by 2027. Aside from that, Converge’s Enterprise business is seen to experience growth in 2025, as it consolidates is offerings like Converge Content+, an internet-basedTV solution that caters to the hospitality industry.
Converge is also looking at its data center business to grow as well. Recently, Converge has been expanding its network of digital hubs to prop up the massive demand for content and cloud services. Converge’s Caloocan Data Center is designed to accommodate 300 racks and will serve the company’s operational needs. On the other hand, Converge’s data center project in Pampanga, designed to accommodate 1,200 racks, is expected to meet the future requirements of both its residential and enterprise customers.
The company is also expecting the entering into service of its two subsea cables, the Bifrost Cable System and the Southeast Asia Hong Kong-Hainan Express Cable System. These are not just for redundancy, but will empower Converge to fully support the needs of its residential and enterprise customers and drive innovation across multiple sectors.
The integration of the new data centers along with the deployment of two subsea cable systems positions us to propel Converge Enterprise Business.
