CONVERGE ICT Solutions, Inc. may fall short of its P18-billion capital expenditure (capex) target this year as construction and network rollout delays slow project completion.
“We have been given guidance of P18 billion but because of delays in rollout, we still do not know if we will hit P18 billion this year,” Converge Chief Operating Officer Benjamin B. Azada told a forum on Oct. 19. “But we are pushing very hard to spend and roll out, especially in the Visayas and Mindanao.”
Mr. Azada said project delays have affected the timing of payments tied to network construction.
“Due to some delays, we may not hit our target,” Mr. Azada said, referring to the company’s P18-billion capital expenditure guidance.
Converge has set a capex guidance of P17 billion to P20 billion for 2026. The company earlier budgeted P18 billion to P23 billion to accelerate network deployment and expand capacity.
Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said lower capex spending would not necessarily prevent the company from meeting its revenue targets, although it could delay expansion plans.
“If these involve network expansion into new areas or additional ports that were expected to generate subscriber additions within the year, some revenue could be pushed into 2027,” he said in a Viber message on Monday.
He said Converge’s subscriber base and network should continue generating recurring revenue.
“Operationally, the delays could slow the pace of network expansion and postpone the availability of new capacity in some areas,” Mr. Arce said. “That may temporarily limit Converge’s ability to connect additional customers or fulfill new enterprise and wholesale demand where additional infrastructure is required.”
In August, Converge said it expects growth to improve in the second half as it adds customers to its fiber network and expands its enterprise business.
The company lowered its 2026 revenue growth guidance to 4% to 6% from 10% after slower second-quarter revenue growth and economic uncertainty.
For the first half, attributable net income declined 7.7% to P5.49 billion from a year earlier. Revenue rose 3% to P22.44 billion.
Converge shares fell 3.34% or 32 centavos to P9.27 each. — Ashley Erika O. Jose