Dennis Uy’s Converge Takes a Page From PLDT’s Old Playbook With More Debt, Growth Spending and Dividends
Dennis Uy’s Converge ICT Solutions Inc. is beginning to look more like the kind of telecom infrastructure company Philippine investors have seen before: one that borrows to fund network expansion while continuing to reward shareholders with generous dividends. The resemblance is not exact. Converge remains far less leveraged than PLDT Inc. was during its heavier investment cycles, and its enterprise and data-center ambitions suggest it is still in expansion mode rather than simply defending a mature franchise. But its first-quarter 2026 results show a capital allocation pattern that is becoming harder to ignore: free cash flow fell short of dividends, debt increased, and management continued investing for growth. Converge reported ₱11.19 billion in revenue for the first quarter of 2026, up 4% year-on-year from ₱10.80 billion . Net income, however, was essentially flat at ₱3.02 billion , while earnings per share stayed unchanged at ₱0.42 . That combination — modest revenue growth...