CONVERGE ICT Solutions, Inc. reported a 15.7% decline in attributable net income to P2.47 billion for the second quarter (Q2) as expenses grew faster than revenue.
For the three months ended June, Converge’s gross revenue rose 2.46% to P11.25 billion from P10.98 billion a year earlier, while gross expenses increased 14.86% to P7.65 billion from P6.66 billion.
For the first half, attributable net income fell 7.73% to P5.49 billion from P5.95 billion a year earlier.
Gross revenue increased 3.03% to P22.44 billion from P21.78 billion in the same period in 2025.
Residential revenue rose 0.82% to P18.52 billion and accounted for most of the company’s revenue during the period. Enterprise revenue increased 15.24% to P3.93 billion from P3.42 billion.
Converge attributed the growth in residential revenue to the continued expansion of its subscriber base, particularly its prepaid segment, although it said inflationary pressures weighed on growth.
The company said enterprise revenue growth was driven by sustained customer demand, with the small and medium enterprise (SME) and large corporate subsegments posting strong double-digit revenue growth.
“Converge has always been focused on delivering the best quality service to its customers. Our upload speed reached a six-month high, while our network delivered best-in-class latency, reflecting the continuous investments we have made to improve customer experience,” Converge Chief Executive Officer Dennis Anthony H. Uy said in a statement on Tuesday.
Gross expenses for the first half rose 9.98% to P14.55 billion from P13.23 billion a year earlier.
Cost of services increased 9% to P7.99 billion, which Converge attributed primarily to higher depreciation and amortization, personnel costs, and service fees.
General and administrative expenses rose 13% to P5.67 billion due to higher promotional spending, managed service fees, and repair and maintenance expenses related to network expansion initiatives.
Converge said its net debt position remained stable at P15.6 billion in the first half.
Cash capital expenditures (capex) totaled P5.7 billion in the first half. The company has set a 2026 capex budget of P18 billion to P23 billion.
Meanwhile, Converge said its board elected former Senior Associate Justice Estela Perlas-Bernabe as chairperson during the company’s annual stockholders’ meeting.
Ms. Perlas-Bernabe succeeded Jose P. de Jesus, who will remain an independent director of Converge.
“I am deeply honored to serve as Chairperson of the Board of Converge. In the past three years, I have witnessed the company’s adherence to the highest standards of corporate governance and seen its subscriber base rise to over three million in a highly competitive industry. I am truly excited to lead the Board as the fiber internet provider evolves into a future-forward technology company,” Ms. Perlas-Bernabe said.
PAX SILICA
Mr. Uy also said Converge supports the Pax Silica initiative, which he said could benefit the country’s economy and digital infrastructure.
“Pax Silica is good for the country, it is a job opportunity. I think we will be ready along the way,” he told reporters on the sidelines of an event on Tuesday.
Pax Silica seeks to strengthen technology supply chains and help the United States counter China’s strengths in technology manufacturing.
“For my end, because this is mostly post manufacturing components, I think it is not my stake. Maybe I can provide connectivity, provide AI infrastructure,” Mr. Uy said.
He said Converge is interested in the proposed artificial intelligence (AI) infrastructure hub project of the Bases Conversion and Development Authority in New Clark City.
“Yes, we will look into it. Because if there is no infrastructure, then it will not be Pax Silica,” he said.
Pax Silica projects in the Philippines, led by a 1,620-hectare (ha) industrial and innovation district in Central Luzon with an initial investment target of $10 billion, will integrate semiconductor design, fabrication and advanced packaging, AI computing, critical mineral processing, energy and data infrastructure, research and development, logistics, offices, housing, and commercial development within the Luzon Economic Corridor.
The Philippines is one of 24 signatories to Pax Silica and joined the bloc in April.
Converge also said the proposed domestic subsea cable project remains under development.
The Department of Information and Communications Technology (DICT) earlier said major telecommunications companies, including Converge, PLDT Inc., and Globe Telecom, Inc., had proposed a $500-million nationwide undersea fiber-optic network to expand connectivity across the Philippines.
“I proposed that during the PSAC (Private Sector Advisory Council) meeting. We see it operated by Globe and also PLDT. We need to build another resilient network so that we are ready in the event of disasters,” Mr. Uy said, noting that each telecommunications company would shoulder part of the investment required for the project.
“The (investments) will be split, divided among us,” Mr. Uy said.
At the local bourse on Tuesday, Converge shares fell 10 centavos, or 0.91%, to P10.92 each. — Ashley Erika O. Jose
