Converge Information & Communications Technology Solutions Inc · PSE:CNVRG
Converge Information & Communications Technology Solutions — H1 2024 Earnings Presentation
36 slides from Converge Information & Communications Technology Solutions's earnings presentation, Aug 14, 2024
Slide 1: 1H2024 Results Investors Briefing
1H2024 RESULTS INVESTORS BRIEFING #LeapIntoTheFuture
Slide 2: Meeting Reminders
Meeting Reminders • Please mute your microphones during the presentation. • Questions will be entertained during the Q&A portion after the presentation. You may send your questions through the Zoom Chat feature. Please introduce yourself along with your affiliated company/research house. • The sessi
Slide 3: Presenting executives
Dennis Anthony H. Uy Grace Y. Uy Robert A. Yu Benjamin B. Azada Jesus C. Romero CEO and Co-Founder President and Co-Founder Chief Finance Officer Chief Commercial Officer and Chief Operations Officer Chief Sustainability Officer
Slide 4: Dennis Anthony H. Uy, CEO and Co-Founder
Mr. Dennis Anthony H. Uy CEO and Co-Founder
Slide 5: #LeapIntoTheFuture
#LeapIntoTheFuture
Slide 6: Converge Microbiz
CONVERGE 0 oy MICROBIZ | Hewlett F Enterpris¢ #LeapIntoTheFuture
Slide 7: Fastest internet in the Philippines, again
CONVERGE FiBER X FASTEST INTERNET IN THE PHILIPPINES, AGAIN. Based on analysis by Ookla® of Speedtest Intelligence® data for QI-Q2 2024. Ookla trademarks used under license and reprinted with permission. : Cc aS - ‘AWARDS o0KLA SPEEDTEST AWARDS FASTEST INTERNET.
Slide 8: ICT Solutions and Super Micro
ICT Solutions Inc. & Super Micro ¢ | CONVERGE Gorsnnicre #LeapintoTheFuture y J - ® (converse
Slide 9: #LeapIntoTheFuture
#LeapIintoTheFuture
Slide 10: Ms. Grace Y. Uy, President and Co-Founder
Ms. Grace Y. Uy President and Co-Founder
Slide 11: Revenue, EBITDA margin and ROIC exceed guidance
Consolidated Revenue, EBITDA margin, and ROIC trifecta exceeds guidance; Fiber net adds in 2Q2024 reached 106k Consolidated revenue grew by 12.4% YoY to ~PHP 19.5 Bn in 1H2024, higher than 7-8% guidance, owing to sustained double-digit growth figures from both Residential and Enterprise segments. Re
Slide 12: Mr. Robert A. Yu, Chief Finance Officer
Mr. Robert A. Yu Chief Finance Officer
Slide 13: Consolidated revenue, EBITDA margin, and ROIC beat guidance
Consolidated revenue, EBITDA margin, and ROIC beat management guidance Revenue EBITDA (1) PHP Mn PHP Mn 35,359 Enterprise 33,696 21,528 Residential 5,077 19,353 4,234 12.4% 18.3% 26,479 YoY YoY 3,350 14,803 19,519 17,362 11,892 15,653 2,884 10,056 30,282 2,487 8,218 3,025 29,462 23,129 14,876 16,635
Slide 14: FY2024 Cash CAPEX guidance increased
FY2024 Cash CAPEX guidance increased to ~ PHP 15 to 17 Bn for additional port deployments in key areas Cash CAPEX PHP Bn Cash CAPEX for 2024 21.9 12.0 13.8 4.5 • 1H2024 Cash CAPEX ended at PHP 4.7 Bn. • FY2024 Cash CAPEX is expected to settle at ~ PHP 15 19.4 to 17 Bn. 15 to 17 Bn • Additional strat
Slide 15: Moderately levered balance sheet
Moderately levered balance sheet with limited exposure to macro pressures 11% of total debt repriced to floating monthly term loan, Moderately leveraged capitalization structure maturing in 4 years Capital Structure Debt exposure(2) PHP Bn PHP Bn Capitalization Structure In PHP Bn Common Equity In P
Slide 16: Mr. Benjamin B. Azada, Chief Commercial Officer
Mr. Benjamin B. Azada Chief Commercial Officer and Chief Sustainability Officer
Slide 17: Fiber gross adds reach 11-quarter high
Quarterly consolidated fiber gross adds continues its QoQ climb to reach an 11-quarter high of 251k Quarterly consolidated fiber net adds remained well above 100k levels. Quarterly Consolidated Fiber Gross Adds – By Region(1) ✓ In 000s BIDA Fiber and Surf2Sawa collectively registered 92,666 gross ad
Slide 18: Consolidated subscribers at 2.4Mn
Consolidated EOP subscribers ended at 2.4Mn; BIDA Fiber and Surf2Sawa combined EOP subscribers ended at 313k Consolidated EOP fiber subscribers ended at 2,213,451 in June 2024, bringing fiber port utilization to 27.5%. Quarterly Consolidated EOP Subscribers Fiber Port Utilization In 000s In 000s 27.
Slide 19: Enterprise sustains double digit growth
Enterprise sustains double digit growth, boosted by new products for SME and corporate clients SME remains the fastest growing sub-segment with 29.5% YoY growth, now contributes more than a quarter of total enterprise revenue. Enterprise revenues by segment Monthly Recurring Revenues (MRC) only - In
Slide 20: Sustainability Highlights and Initiatives in 2Q2024
Sustainability Highlights and Initiatives in 2Q2024 Commitment to Sustainability Diversity, Equity and Inclusion 2024 ESG Ratings 2023 2024 A A Submission of UN Global Compact International Girls in ICT Day 2024 celebration in Low Low 2024 Communication of Progress (CoP) partnership with Internation
Slide 21: Mr. Jesus C. Romero, Chief Operations Officer
Mr. Jesus C. Romero Chief Operations Officer
Slide 22: Network strengthening and CXP initiatives benefits
Company continues to reap the benefits of various network strengthening and CXP initiatives Faster average repair time in 1H2024 vs 1H2023 Customer experience metrics in 2Q2024 Mean Time to Repair Social Media Average Answer Time Average Handle Time ↓ 29% ↓ 21% ↓ 5% vs. 1H2023 vs. 2Q2023 vs. 2Q2023
Slide 23: Speed and latency scores
Best Latency for Fixed Network in the PH: 11.35ms 147.77 603.46Mbps 552.21Mbps Speed Score Top Download Top Upload Speed Speed
Slide 24: Network Sharing Agreement with Sky Cable
Converge and Sky Cable entered into a Network Sharing Agreement Sky Cable Corporation has entered into a commercial arrangement with Converge that will enable Sky Cable to upgrade its network and improve services to its subscribers. Monetization of Converge’s unused capacity Allows Sky Cable to upgr
Slide 25: Mr. Robert A. Yu, Chief Finance Officer
Mr. Robert A. Yu Chief Finance Officer
Slide 26: Q&A
#LeapIntoTheFuture Q&A (CONVERGE
Slide 27: Thank you!
#LeapIntoTheFuture Thank you! (CONVERGE
Slide 28: Disclaimer
Disclaimer This material has been prepared exclusively for information and disclosure purposes only. This does not constitute any offer to buy or sell securities. These may contain forward-looking statements and information that are, by their nature, subject to significant risks, uncertainties, and
Slide 29: Quarterly Operational Performance
Quarterly Operational Performance 2023 2024 YoY Change % 2Q2024 vs 1Q 2Q 3Q 4Q 1Q 2Q 2Q2023 Residential Revenues (In PHP millions) 7,399 7,477 7,591 7,812 8,167 8,469 11.8% FTTH 7,089 7,181 7,331 7,600 7,993 8,345 14.5% HFC 311 291 259 212 173 124 -50.5% Customers 1,920,361 1,969,663 2,048,286 2,128
Slide 30: Consolidated Income Statement
Consolidated Income Statement For the six months ended June 30 For the three months ended June 30 YoY change YoY YoY 2024 2023 YoY change 2024 2023 % change change % In PHP millions Revenues 19,519 17,362 2,157 12% 9,979 8,720 1,259 14% Residential 16,635 14,876 1,760 12% 8,469 7,477 992 13% Enterpr
Slide 31: Consolidated Income Statement
Consolidated Income Statement For the three months ended June 30 YoY YoY 2024 2023 change change % (in ₱ millions) Depreciation and amortization 3,395 2,764 630 23% Amortization of deferred contract cost 786 1,049 (264) -25% Repairs and maintenance expense 1,037 570 467 82% Rent 798 263 535 204% Ban
Slide 32: Consolidated Income Statement
Consolidated Income Statement For the three months ended June 30 2024 2023 YoY change YoY change % (in ₱ millions) Provision for impairment of property plant and equipment - 226 (226) -100% Net foreign exchange loss/(gain) (207) 103 (310) -302% Interest income (235) (70) (165) 234% (Gain) Loss on di
Slide 33: Consolidated Balance Sheet
Consolidated Balance Sheet As of the period June 30, Dec 31, Change Change % 2024 2023 In P millions Current assets Cash and cash equivalents 16,990 13,694 3,296 24% Trade and other receivables, net 3,326 3,456 (130) -4% Due from related parties, net, current portion 151 209 (57) -28% Network materi
Slide 34: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement For the six months ended June 30 YoY YoY 2024 2023 change change % In PHP millions Cash flow from operating activities Profit before income tax 7,003 5,631 1,372 24% Adjustments for operating income 5,601 6,337 (311) 15% Adjustments for assets and liabilities (402) (
Slide 35: Liquidity and Capital Resources
Liquidity and Capital Resources June 30, December 31, Change (%) 2024 2023 Balance Sheet Data (in P millions) Total Assets 104,635 101,145 3% Total Debt 32,781 35,244 -7% Total Stockholders' Equity 50,557 45,246 12% Financial Ratios Total Debt to EBITDA (gross) 1.3x 1.6x Total Debt to EBITDA (net) 0
Slide 36: Converge
CONVERGE
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