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Converge income up 83% to P931M in Q3

Converge ICT Solutions Inc. reported a double-digit increase in its income for the third quarter of the year, as rollout and subscriber additions drove revenues up.

In a disclosure to the local bourse, the company reported a total comprehensive income of P931.5 million in the July to September period, up 83% from P509.4 million in the same period last year.

Revenues for the quarter climbed to P4.187 billion from P2.451 billion, while the cost of expenses rose to P1.925 billion from P1.212 billion.

Year-to-date, Converge reported a total comprehensive income of P2.170 billion, up 59.5% from P1.361 billion the same period last year. Revenues climbed to 10.677 billion from P6.397 billion, while cost of services rose to P4.943 billion from P3.112 billion.

"The increase in gross margin was primarily due to the increase in revenue, which outpaced increase in costs," the regulatory filing read.

Just last month, Converge generated P29 billion from its initial public offering (IPO), the same amount it has allocated to spend in the next 18 months to finance its expansion across the country.

In July it said it would spend P33 billion for the remainder of 2020 and the rest of 2021 for the development and expansion of its national backbone, provincial backbone, and last-mile connectivity.

Shares in Converge closed Monday at P16.61 apiece, unchanged from the previous finish. — BM, GMA News