Converge Information and Communications Technology Solution (CNVRG) Q1 2025 earnings summary

Executive summary

• Achieved consolidated revenues of P10.8 billion for Q1 2025, up 13% year-over-year, driven by both Residential and Enterprise segments.

• Net income rose 18% to P3.02 billion, reflecting strong operational performance and cost management.

• EBITDA increased 15% to P6.7 billion, with margin improving to 62.0%.

• Introduced new bundled products for Residential and Enterprise, expanded partnerships, and received multiple industry awards.

Financial highlights

• Residential revenues grew 12% year-over-year to P9.1 billion; Enterprise revenues surged 23% to P1.7 billion.

• Cost of services increased 10% to P3.7 billion, mainly due to higher amortization and depreciation.

• General and administrative expenses rose 14% to P2.5 billion, reflecting business expansion.

• Earnings per share (basic and diluted) improved to P0.42 from P0.35 year-over-year.

• Book value per share at P7.51 as of March 31, 2025.

Outlook and guidance

• Maintains strong liquidity and low leverage, with net debt/EBITDA at 0.4x, supporting future capital expenditures.

• Management expects continued growth in both Residential and Enterprise segments, leveraging new product offerings and network expansion.