Broadband provider Converge Information and Communications Technology Solutions Inc. has trimmed its full-year 2026 revenue growth forecast down to 4 to 6 percent, citing sticky inflation that has squeezed consumer spending and slowed industry-wide expansion.
The revised outlook cuts the company’s previous revenue growth target of 8 to 10 percent nearly in half.
“We’re updating our full-year 2026 guidance. Persistent inflation since the second quarter has created headwinds across the entire industry. To keep our targets aligned with the current economic conditions, we are making practical adjustments to our outlook,” Converge Chief Finance Officer Robert Yu said during a media briefing.The guidance downgrade follows a softer first half. Converge recorded a net income after tax of P5.5 billion for the first six months of 2026, an 8 percent decline from the P5.94 billion logged in the same period last year.
Consolidated revenues managed a modest 3.1 percent uptick to P22.4 billion, up from P21.8 billion.
Despite macro pressures, the fiber operator expects to hold profitability steady. Converge is targeting an EBITDA margin of 58 to 59 percent through strict cost-discipline measures, alongside an optimized capital expenditure program of P17 billion to P20 billion for the year. It aims to preserve a return on invested capital (ROIC) between 15.5 and 16.5 percent.
“While persistent inflationary pressures since 2Q2026 present near-term macroeconomic headwinds, Converge remains operationally resilient,” the company said in a statement.
The company’s core residential business posted P18.5 billion in first-half revenues, bringing its total active subscriber base to 3.09 million as of June.
Growth was significantly stronger in the corporate market. The enterprise division surged 15.1 percent to P3.9 billion from P3.4 billion a year ago, driven by double-digit performance across both its small and medium enterprise (up 15.7 percent) and large corporate units (up 14.8 percent).