Converge ICT Solutions Inc. has utilized the proceeds from its P10-billion fixed rate bond offering to finance its capital expenditures and other general corporate matters.
In a disclosure on Monday, the internet service provider stated that it has already disbursed a net amount of P9.85 billion from the transaction.
Last year, the majority of the funds, amounting to P7.21 billion, were utilized, while the remaining amount was spent in the first half of 2023.
Out of the total, P7.86 billion was allocated for capital expenditures, while P1.93 billion was allocated for general corporate purposes.
For this year, Converge ICT Solutions Inc. has allocated P12 billion to P15 billion for capital expenditures, which is lower compared to the P22 billion spent in 2022. This reduction in expenses comes after the upfront costs incurred for network expansion.
A significant portion of the budget will be allocated for the deployment of ports and routers, as well as investments in subsea cables and digitalization efforts.
During the first quarter, the company spent around P3 billion for port deployments and network expansion initiatives.
Converge ICT Solutions Inc. has identified Bohol, Zamboanga, Palawan, and Aklan as its growth areas for the year. With the deployment of 8 million ports across the country, it currently has a household coverage of 56%, surpassing its 55% target.
Furthermore, the company expects its total revenue to grow by 10% to 15% this year. In the first quarter, Converge ICT Solutions Inc. saw a 10% improvement in net income, reaching P2.17 billion, while revenues grew by 12% to P8.64 billion.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
