MANILA - Ayala-led Globe Telecom said Tuesday its net income for the first six months of the year increased 17% from the same period last year to P7.241 billion due to one-off charges and new product offerings.

In a disclosure to the stock exchange, the country's second largest mobile phone operator, said that while consolidated service revenues went up by only 2% to P31.7 billion in the January-June period, it had a P398 million non-operating charges arising from an equipment exchange transaction with an equipment supplier.

Thus, its core net income, which excludes foreign exchange, mark-to-market gains and losses, and non-recurring items, was up only 3% to P6.9 billion during the period.

Subscriber base grew by 2.3 million to reach 25 million as of June. From these, the wireless business generated revenues of P27.6 billion.

Globe said it had re-focused its strategy from aggressive subscriber acquisition, which was the case for many years, to stimulating usage and strengthening brand loyalty.

“While acquisition remains an important part of our wireless strategy, we believe that our focus should increasingly move towards promoting retention and stimulating usage, particularly in the face of a maturing market. We want to break the cycle of acquiring and reacquiring marginal subscribers, and are recalibrating our sales drives to deliver profitable growth and acquire better quality subscribers," said Globe president and chief executive Ernest Cu.

“On retention, we will continue to focus on ensuring 24/7 connectivity, strengthening our brand propositions, and developing unique and relevant product offerings,” he added.

It also launched new services accross its product portfolio. For its prepaid subscribers in Cebu and Metro Manila, Globe introduced its pioneering Duo service in June following its launch to postpaid subscribers in April. This two-in-one mobile and landline service is available for P25 for 1 day, P125 for 5 days, P350 for 14 days and P450 for 30 days.

Tattoo, the mobile broadband service, likewise complemented by expansion of Globe’s WiMAX coverage areas which now include parts of Metro Manila, Western Visayas, Central and Northern Mindanao, Cebu, South Luzon and Cagayan de Oro.

Total operating expenses and subsidy, however, was up 6% to P12.6 billion, driven by higher subsidy, rent, and services.

Capital expenditures rose 28%to P12.8 billion as Globe expanded its 2G, 3G and broadband networks.

As of June 2009, Globe has 9,280 base stations and 6,052 cellsites to support its 2G, 3G and WiMAX services.