Converge Information & Communications Technology Solutions Inc · PSE:CNVRG
Converge Information & Communications Technology Solutions — 9M2024 Earnings Presentation
34 slides from Converge Information & Communications Technology Solutions's earnings presentation, Nov 13, 2024
Slide 1: 9M2024 Results Investors Briefing
9M2024 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: Presenters
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: Mr. Dennis Anthony H. Uy, CEO and Co-Founder
Mr. Dennis Anthony H. Uy CEO and Co-Founder
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Slide 9: Ms. Grace Y. Uy, President and Co-Founder
Ms. Grace Y. Uy President and Co-Founder
Slide 10: Consolidated Revenue, EBITDA margin, and ROIC trifecta well within guidance
Consolidated Revenue, EBITDA margin, and ROIC trifecta well within guidance Consolidated revenue grew by 14.1% YoY to ~PHP 29.9 Bn in 9M2024, owing to reaccelerating growth from both Residential and Enterprise segments. Residential revenue grew by 13.2% YoY to ~PHP 25.4 Bn in 9M2024 Consolidated fib
Slide 11: Mr. Robert A. Yu, Chief Finance Officer
Mr. Robert A. Yu Chief Finance Officer
Slide 12: Consolidated revenue, EBITDA margin, and ROIC within management guidance
Consolidated revenue, EBITDA margin, and ROIC within management guidance Revenue EBITDA (1) PHP Mn PHP Mn 35,359 14.1% 20.5% Enterprise 33,696 YoY 21,528 YoY Residential 5,077 29,938 19,353 4,234 18,253 26,479 26,248 4,497 3,350 14,803 15,149 3,778 15,653 3,025 29,462 30,282 8,218 23,129 25,441 22,4
Slide 13: FY2024 Cash CAPEX expected to end at ~PHP 11 to 13 Bn
FY2024 Cash CAPEX expected to end at ~ PHP 11 to 13 Bn Cash CAPEX PHP Bn Cash CAPEX for 2024 21.9 12.0 13.1 6.7 • 9M2024 Cash CAPEX ended at PHP 7.5 Bn. • FY2024 Cash CAPEX is expected to settle at ~ PHP 11 to 19.4 13 Bn ~ 4 Bn CAPEX • ~ PHP 4 Bn of CAPEX to be moved to 2025 as port roll moved to 20
Slide 14: 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(2) PHP Bn PHP Bn Capitalization Structure In PHP Bn Common Equity In P
Slide 15: Converge announced its inaugural dividend policy and special cash dividends
Converge announced its inaugural dividend policy and declared special cash dividends on September 10, 2024 DIVIDEND POLICY SPECIAL CASH DIVIDENDS TARGET DIVIDEND PAYOUT RATIO: SPECIAL CASH DIVIDEND PAYMENT 25% to 30% PHP 1.31Bn or of the Company’s net income based on the latest audited financial sta
Slide 16: Mr. Benjamin B. Azada, Chief Commercial Officer and Chief Sustainability Officer
Mr. Benjamin B. Azada Chief Commercial Officer and Chief Sustainability Officer
Slide 17: Quarterly fiber gross adds continues its QoQ climb to a 3-year high of 258k
Quarterly fiber gross adds continues its QoQ climb to reach a 3-year high of 258k Total fiber net adds as of September 2024 reached 349k, already surpassing FY2023 total fiber net adds by more than 20% Quarterly Consolidated Fiber Gross Adds – By Region(1) ✓ In 000s 258 FiberX 3Q2024 gross adds reac
Slide 18: Consolidated EOP subscribers ended at 2.5Mn
Consolidated EOP subscribers ended at 2.5Mn; BIDA Fiber and Surf2Sawa combined EOP subscribers ended at 371k Consolidated EOP fiber subscribers ended at 2.3Mn in September 2024, bringing fiber port utilization to 29.6%. Quarterly Consolidated EOP Subscribers Fiber Port Utilization2 29.6% In 000s In
Slide 19: All-New FiberX Boost Mode Plans
ALL-NEW FIBERX BOOST MODE PLANS
Slide 20: Converge Netflix Bundle
CONVERGE NETFLIX BUNDLE AVAILABLE PLANS INCLUSIONS Xperience Box with Freemium channels
Slide 21: Enterprise growth reaccelerates back to double-digit across all subsegments
Enterprise growth reaccelerates back to double-digit across all subsegments SME remains the fastest growing sub-segment with 30% YoY growth. Enterprise revenues by segment 9M2024 YoY growth: New enterprise product Monthly Recurring Revenues (MRC) only - In PHP millions SME: 30.0% Enterprise and Corp
Slide 22: Sustainability Highlights and Initiatives in 3Q2024
Sustainability Highlights and Initiatives in 3Q2024 Commitment to Sustainability Corporate Governance 2024 ESG Ratings 2023 2024 A A Low Low Maintained Three Golden Arrow rating in Risk Risk Joined ASEAN Circular Economy Business Alliance ASEAN Corporate Governance Scorecard Partnered with Caritas M
Slide 23: Mr. Jesus C. Romero, Chief Operations Officer
Mr. Jesus C. Romero Chief Operations Officer
Slide 24: Continued upgrading and improvement of digital infrastructure
Continued upgrading and improvement of digital infrastructure Faster average repair time in 9M2024 vs 9M2023 Network Updates Mean Time to Repair ↓ 32% Partnered with NASDAQ-listed Ribbon Tapped Infinera as its terminal line vs. 9M2023 Communications for state-of-the art equipment vendor for the Bifr
Slide 25: CXP innovations lead to more intuitive, seamless customer experiences
CXP innovations lead to more intuitive, seamless customer experiences Customer experience Fast and Global Recognition metrics in 3Q2024 frictionless customer service with the Ticket Management GoFiberApp and the Chatbot. Average Ticket Time Close Rate in 48 hrs ↓ 4% ↑ 77% 36% cases deflected vs. 3Q2
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 3Q2024 vs 2Q 3Q 4Q 1Q 2Q 3Q 3Q2023 Residential Revenues (In PHP millions) 7,476 7,595 7,812 8,167 8,469 8,806 15.9% FTTH 7,186 7,335 7,600 7,993 8,345 8,693 18.5% HFC 291 259 212 173 124 113 -56.3% Customers 1,969,663 2,048,286 2,128,052 2,252,8
Slide 30: Consolidated Income Statement
Consolidated Income Statement For the nine months ended September 30 For the three months ended September 30 2024 2023 YoY change YoY change % 2024 2023 YoY change YoY change % (in ₱ millions) (in ₱ millions) Revenues 29,938 26,248 3,690 14% 10,419 8,886 1,533 17% Residential 25,441 22,470 2,971 13%
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet As of the period Sep 30, 2023 Dec 31, 2023 Change Change % (in ₱ millions) Current assets Cash and cash equivalents 16,882 13,694 3,188 23% Trade and other receivables, net 4,030 3,456 574 17% Due from related parties, net, current portion 133 209 (76) -36% Network materia
Slide 32: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement For the nine months ended September 30 YoY change 2024 2023 YoY change % In PHP millions Cash flow from operating activities Profit before income tax 10,853 8,401 2,452 29% Adjustments for operating income 8,770 9,486 (716) -8% Adjustments for assets and liabilities
Slide 33: Liquidity and Capital Resources
Liquidity and Capital Resources September December 31, Change (%) 30, 2024 2023 Balance Sheet Data (in P millions) Total Assets 105,430 101,145 4% Total Debt 30,899 35,244 -12% Total Stockholders' Equity 52,105 45,246 15% Financial Ratios Total Debt to EBITDA (gross) 1.3x 1.6x Total Debt to EBITDA (
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Converge Information and Communications Technology Solutions — 9M2024 Earnings Presentation on 6ix