Globe Telecom sustained its sales and profit growth for the first semester of 2009, with consolidated service revenues edging up 2 percent to P31.7 billion and net profit after tax up 17 percent to P7.2 billion.

Excluding foreign exchange, mark-to-market gains and losses, and non-recurring items, the telco’s core net income moved up 3% to P6.9 billion from P6.7 billion last year.

Its wireless business posted P27.6 billion sales, at par with 2008 level, hauling in 25 million subscribers against last year’s level of 22.7 million and last quarter’s 25.6 million.

On the other hand, Globe’s wireline and broadband business showed more room for growth, generating P4.1 billion at the end of the first half, a 16 percent increase.

Consolidated EBITDA margin was slightly down at 60% versus 62% last year.

The company recalibrated its subscriber acquisition initiative for this quarter, increasing its focus on stimulating usage and strengthening brand loyalty, while churning out some of its marginal subscribers.

“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,” according Ernest L. Cu, President and CEO.

“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,” he explained.

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

On the wireline front, the Globe’s broadband business continued to expand, ending the first half with about 379,000 subscribers, more than double year-ago levels. Revenues also continued to grow at a double-digit rate, rising 59% to close the first semester at P1.4 billion.

Globe’s fully mobile broadband service Tattoo continued to be the main driver of growth. (EVA)