With almost P2B in Q1 profits, Converge sees PBA team as ‘excellent expense’

May 17, 2022
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Jeff Cariso (middle) at the press conference announcing the Converge Fiber Xers.
PHOTO: Jerome Ascano

CONVERGE has successfully sustained its business momentum to the first three months of 2022, growing its income to P1.97 billion — a 27 percent jump from the same period last year.

Revenues, meanwhile, jumped 40 percent from P5.55 billion to P7.75 billion.

The first-quarter financial report showed that majority of those revenues came from their residential-side subscribers, which have grown to number 1.8 million. The fiber internet services provider projects that it will hit its target of 55 percent Philippine coverage by 2023.

But its business customers are also on the uptick, especially the small and medium enterprise, or SME, segment, which increased by 200 percent. The SME side also pumped in double its share of their revenues compared to Q1 2021.

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    How much Converge spent on PBA

    Meanwhile, in a press briefing reporting their financial statements, Converge chief strategy officer Benjamin Azada also discussed their acquisition of the Alaska Aces franchise to become the newest team in the PBA, the Converge Fiber Xers.

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    “The reason why we felt that it is an excellent expense for Converge is because of the reach of PBA in terms of viewership and following, and of course the in-person audience who go to MOA Arena to watch,” he explained.

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    Converge’s analysts predict a return on investment on their PBA foray through a “projected annual earned media value of P2 billion to P4 billion.”

    Azada revealed that the company had spent an initial investment of P105 million, and expects to have yearly operating expenses of P200 million.

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    Jeff Cariso (middle) at the press conference announcing the Converge Fiber Xers.
    PHOTO: Jerome Ascano
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