Converge sees minimal impact from Middle East crisis

CONVERGE ICT Solutions, Inc. said it expects the ongoing Middle East crisis to have minimal impact on its business in the short term, while noting that it may recalibrate plans if the situation persists.

“As a matter of fact, it is quite something that we immediately discuss. We have determined that in the short term, the impact would only be minimal,” Converge Chief Operating Officer Benjamin B. Azada said in an online media briefing on Friday.

Converge said rising global fuel prices could affect some of its operations because the company still uses internal combustion engine vehicles for installation and repair work.

However, the company said many vehicles in its fleet are now electric and hybrid, which could help cushion the impact of higher fuel costs.

“But having said that, that is a very small part of our cost base, of our operating expenses. So, in the short-term, [we see] minimal impact but obviously for the longer-term if this crisis continues, we have to see how it is going to impact in terms of customer demand,” he said, adding that the company would have to assess its offerings to ensure they remain affordable as any impact on the broader economy affects customer demand.

Converge is expanding its network in the Visayas and Mindanao by rolling out nearly one million ports this year.

For 2026, the company has earmarked P23 billion in capital expenditure (capex), which will mainly fund network expansion.

“We are investing heavily in our network expansion as we push harder for visibility in Visayas and Mindanao. At the same time, we are ramping up our Enterprise business amid increasing demand for quality connectivity and innovative solutions from enterprises of all sizes,” Converge Chief Executive Officer Dennis Anthony H. Uy said.

The listed fiber provider said it will focus its expansion on Western Visayas and Northern Mindanao, with more than 100,000 ports expected to be ready for service this year.

These newly rolled out ports will serve Capiz, Samar, Bukidnon, Davao de Oro, and Sultan Kudarat, the company said.

Converge is targeting revenue growth of 8% to 10% this year, driven by strategic network expansion into underserved markets in the Visayas and Mindanao.

The listed fiber internet provider reported net income of P11.86 billion for 2025, up 9.7% from P10.81 billion in the previous year.

Total revenues rose 10.24% to P44.77 billion from P40.61 billion in 2024, mainly supported by growth in its residential business, according to its regulatory filing. — Ashley Erika O. Jose