The Philippies based Globe Telecom has reported a 35% drop in its second quarter profits of PHP2.11 billion (US$46.6 million). Revenues dropped by 1.5% to PHP15.50 billion (US$342 million). The mobile business sustained positive net additions of 732,000 in the second quarter to close the period with 24.6 million subscribers. This is 3% higher than last quarter's base, but 2% lower than last year when the Company deliberately churned out marginal subscribers and recalibrated its acquisition efforts.

For the broadband business, Globe added almost 90,000 subscribers this quarter to end the period with over 930,000 subscribers, up almost three-fold from last year's 379,000 customers. The expansion was led by Globe Broadband Tattoo, the Company's internet-on-the-go service, as well as Globe WiMAX for at-home internet use.

"Our first half results are reflective of the challenges facing the industry - traffic is growing, but revenues are declining with the market's increasing preference for unlimited services. Competition is becoming more intense, and will likely further intensify as the market slows," said Ernest L. Cu, President and CEO. "We have strong brands with good value propositions, a large and loyal retail and corporate subscriber base, and an extensive and robust network. To protect our gains and grow our business, the key is to differentiate ourselves from competition by providing superior end-to-end customer service," added Mr. Cu.

"Our immediate goal is to recover revenue market share in our mobile business. We will adapt to the changing industry dynamics, persist in our efforts, and dedicate our resources to putting our business back on the growth track," Mr. Cu concluded.