Converge enterprise business sustains growth momentum amid digital transformation push among companies, public sector

Converge ICT Solutions, Inc. (PSE: CNVRG) reported strong momentum in its Enterprise segment for the first half of 2026 (1H2026), delivering a 15.1% year-on-year growth to over P3.9 billion in revenues as more companies and the public sector embrace digital transformation in their operations.

Driven by strategic new customer acquisitions and expanding digital transformation needs across Philippine businesses, the enterprise sector served as a key growth engine, helping propel the company’s consolidated revenues to P22.4 billion, up by 3.1% compared to its year-ago level.

“The acceleration we’re seeing across our Enterprise portfolio is a clear validation of our product roadmap. Enterprise customers aren’t just adopting our technology—they’re expanding their footprint with us, making this business unit an important driver for durable, recurring growth moving forward,” said Converge Chief Finance Officer Robert Yu. 

The growth in enterprise revenues was backed by solid, double-digit performance across both small and medium enterprises (SMEs) and large corporate accounts which include the public sector:

• SME: Revenue grew 15.7% YoY, benefiting from an expanding commercial client base seeking high-speed, reliable fiber broadband.
• Enterprise and Large Corporate: Revenue rose 14.8% YoY, fueled by high-value enterprise contracts, data-heavy service adoption, and national digital infrastructure capabilities.

Just recently, the company’s large enterprise unit – Converge Global Business – announced that it has sealed partnerships with major universities and local government units (LGUs) to power their digitalization initiatives with robust connectivity solutions.

Converge also reported that its residential segment remained to contribute bulk of revenues with P18.5 billion, as total subscribers reached 3.09 million by the end of June 2026.

“The true impact is showing up in the day-to-day experience of our customers—fewer friction points, faster issue resolution, and a level of service that is validated and affirmed not just by Ookla, but increasingly by the government,” noted Converge Chief Operations Officer Benjamin Azada. 

Overall network performance has outperformed those of peers, with Converge bringing home two key accolades: 

• DICT Oplan Bantay Signal 2Q2026 Report: Ranked #1 in fixed broadband network performance, delivering an average latency of 5 ms and download speeds of 158 Mbps while customer complaints declined by 84% from January to June 2026.
• Ookla® Speedtest Awards 1H2026: Awarded “Best Internet,” “Fastest Internet,” and “Best Fixed Latency”.

Despite headwinds from rising oil prices and inflationary pressures, Converge delivered stable financial performance with its disciplined capital allocation and cost management:

• EBITDA: Reached Php 13.3 billion, yielding an industry-leading EBITDA margin of 59.1%, aligned with full-year guidance.
• Net Income After Tax: Recorded at Php 5.5 billion (net income margin of 24.4%).
• Return on Invested Capital (ROIC): Maintained at 14.9%, reflecting strategic capital deployment in network hardening and expansion.
• Capital Expenditure & Balance Sheet: Total cash CAPEX for 1H2026 stood at Php 5.7 billion, with a stable net debt position of Php 15.6 billion and gross debt-to-total equity at 0.4x.