Converge Information & Communications Technology Solutions Inc · PSE:CNVRG
Converge Information & Communications Technology Solutions — FY2024 Earnings Presentation
32 slides from Converge Information & Communications Technology Solutions's earnings presentation, March 2025
Slide 1: 2024 Results Briefing
CONVERGE 2024 Results Briefing #ConvergeTayo
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. ● The session will be recorded. 2
Slide 3: Presenters
Dennis Anthony H. Uy Grace Y. Uy Robert A. Yu Jesus C. Romero Benjamin B. Azada CEO and Co-Founder President and Co-Founder Chief Finance Officer Chief Operations Officer Chief Commercial Officer and Chief Sustainability Officer 3
Slide 4: Dennis Anthony H. Uy, CEO and Co-Founder
Dennis Anthony H. Uy CEO and Co-Founder 4
Slide 5: toTheFuture
toTheFuture
Slide 6: Grace Y. Uy, President and Co-Founder
Grace Y. Uy President and Co-Founder 6
Slide 7: Revenue, EBITDA margin and ROIC ended at the high-end of full year guidance
Consolidated revenue, EBITDA margin, and ROIC trifecta ended at the high-end of full year guidance Consolidated revenue grew by 14.8% YoY to ~PHP 40.6 Bn in FY2024, owing to strong growth from both Residential and Enterprise segments Residential revenue grew by 13.7% YoY to ~PHP 34.4 Bn in FY2024 Co
Slide 8: Dividend Payout
Dividend Payout REGULAR CASH DIVIDENDS PHP 3.12 Bn or PHP 0.4300 per share The Company remains to be moderately levered with sufficient cash to pay the regular cash dividends The Board has approved an annual payout of FY2025 dividends scheduled as follows: Key Dividend Dates Declaration Date March 1
Slide 9: Robert A. Yu, Chief Finance Officer
Robert A. Yu Chief Finance Officer 9
Slide 10: Consolidated revenue, EBITDA margin, and ROIC reach higher end of management guidance
Consolidated revenue, EBITDA margin, and ROIC reach higher end of management guidance Revenue EBITDA PHP Mn 14.8% PHP Mn YoY 14.2% YoY ROIC (2)(3) Annualized EBITDA Margin (1) 18.3% 9.2% 8.7% 6.8% Converge APAC Broadband PH Telcos Global Broadband Notes: 1. 2021-2024 EBITDA shown as reported EBITDA.
Slide 11: FY2025 Cash CAPEX expected to reach ~PHP 20 to 25 Bn
FY2025 Cash CAPEX expected to reach ~ PHP 20 to 25 Bn Cash CAPEX PHP Bn Cash CAPEX for 2024 21.9 12.0 9.9 20-25 • FY2024 Cash CAPEX ended at PHP 9.3 Bn. 19.4 • FY2025 Cash CAPEX expected to be higher due to (1) one-off capital 32% investments in international subsea cable systems and data centers an
Slide 12: Moderately levered balance sheet with limited exposure to macro pressures
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(1) PHP Bn PHP Bn Capitalization Structure In PHP Bn Common Equity In P
Slide 13: FY 2025 Guidance
FY 2025 Guidance FY 2024 Results FY 2025 Guidance Revenue 14.8% 14% to 16% Growth EBITDA 60.5% 61% to 62% Margin ROIC 18.3% 16.5% to 17.5% CAPEX 9.3Bn 20Bn to 25Bn 13
Slide 14: Benjamin B. Azada, Chief Commercial Officer and Chief Sustainability Officer
Benjamin B. Azada Chief Commercial Officer and Chief Sustainability Officer 14
Slide 15: Consolidated EOP subscribers ended at 2.6Mn; flanker brands grew by at least 150%
Consolidated EOP subscribers ended at 2.6Mn; Both flanker brands grew by at least 150% since December 2023 Consolidated EOP fiber subscribers ended at 2.6Mn in December 2024, bringing fiber port utilization to more than 30%. Quarterly Consolidated Fiber Net Adds - By Product In 000s 131 Fiber Port U
Slide 16: All-new FiberX Boost Mode Plans
ALL-NEW FIBERX BOOST MODE PLANS 16
Slide 17: Converge Netflix Bundle
CONVERGE NETFLIX BUNDLE AVAILABLE PLANS INCLUSIONS Xperience Box with Freemium channels 17
Slide 18: Enterprise growth at 22% with strong contribution from all subsegments
Enterprise growth at 22% with strong contribution from all subsegments SME remains the fastest growing sub-segment with 48% YoY growth. Enterprise revenues by segment Monthly Recurring Revenues (MRC) only - In PHP millions FY2024 YoY growth: SME: 48% Enterprise and Corporate: 15% Wholesale: 23% Note
Slide 19: Sustainability Highlights and Initiatives in 4Q/FY2024
Sustainability Highlights and Initiatives in 4Q/FY2024 Corporate Governance Cybersecurity Cybersecurity / Customer Customer Welfare Health and Safety Maintained Three Golden Arrow rating in Project Piglet - promoted digital Safeguarded customers by restricting ASEAN Corporate Governance Scorecard li
Slide 20: Jesus C. Romero, Chief Operations Officer
Jesus C. Romero Chief Operations Officer 20
Slide 21: Company continues to reap the benefits of network strengthening and CXP initiatives
Company continues to reap the benefits of various network strengthening and CXP initiatives Faster average repair time in 2024 vs 2023 Customer experience metrics 2024 Mean Time to Repair Social Media ↓ 20% Average Answer Time Average Handle Time vs. FY2023 ↓ 50% ↓ 20% Backbone vs. FY2023 vs. FY2023
Slide 22: Converge Dominates Ookla's Speedtest Awards
Converge Dominates Ookla’s Speedtest Awards, Reigns as Philippines' Fastest Internet 22
Slide 23: Q&A
Q&A 23
Slide 24: 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 25: Appendix
Appendix 25
Slide 26: Quarterly Operating Performance
Quarterly Operating Performance 2023 2024 2Q 3Q 4Q 1Q 2Q 3Q 4Q Residential Revenues (In PHP millions) 7,476 7,595 7,812 8,167 8,469 8,806 8,981 FTTH 7,186 7,335 7,600 7,993 8,345 8,693 8,913 HFC 291 259 212 173 124 113 68 Customers 1,969,663 2,048,286 2,128,052 2,252,845 2,351,803 2,459,851 2,563,45
Slide 27: Consolidated Income Statement
Consolidated Income Statement For the twelve months ended December 31 For the three months ended December 31 YoY change YoY YoY 2024 2023 YoY change 2024 2023 % change change % In PHP millions Revenues 40,610 35,359 5,251 15% 10,672 9,111 1,561 17% Residential 34,422 30,282 4,140 14% 8,981 7,812 1,1
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet As of the period December 31 2024 2023 Change Change % In PHP millions Current assets Cash and cash equivalents 8,454 13,333 (4,880) -37% Short-term cash placements 8,527 361 8,166 N/M Trade and other receivables, net 4,132 3,241 891 27% Due from related parties, net, curr
Slide 29: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement For the twelve months ended December 31 YoY change 2024 2023 YoY change % In PHP millions Cash flow from operating activities Profit before income tax 14,289 12,122 2,167 18% Adjustments for operating income 12,279 12,490 (211) -2% Adjustments for assets and liabilit
Slide 30: Liquidity and Capital Resources
Liquidity and Capital Resources December 31, December 31, Change (%) 2024 2023 Balance Sheet Data (in PHP millions) Total Assets 107,054 101,145 6% Total Debt 29,515 35,244 -16% Total Stockholders' Equity 54,690 45,246 21% Financial Ratios Total Debt to EBITDA (gross) 1.2x 1.6x Total Debt to EBITDA
Slide 31: International Subsea Cable Systems
International Subsea Cable Systems 31
Slide 32: 2024 Results Briefing
CONVERGE 2024 Results Briefing #ConvergeTayo
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