Globe Telecom, the country?s second-largest mobile phone operator, said its net income tumbled 43 percent year-on-year in the fourth quarter of 2008, amid weaker economic environment and rising competition in the telecom industry.

The company, owned by Ayala Corp. and Singapore Telecom, said net income in the October-December period amounted to P2.504 billion, down from P3.585 billion it declared during the same period in 2007.

Globe said net income for the full year fell 15 percent to P11.276 billion as service revenues dropped slightly from P63.2 billion to P62.9 billion.

Globe?s wireless service revenues dropped 1 percent to P55.6 billion in 2008 while wireline revenues improved 7 percent to P7.3 billion despite the net addition of 4.4 million SIMs in 2008. Globe Telecom ended 2008 with a total subscriber base of 24.7 million, up 22 percent from 2007.

It said wireless revenues, representing 88 percent of the total service revenues, fell 1 percent to P55.6 billion in 2008, because of lower activity levels due to the weaker consumer environment and increasing incidence of multi-SIM use.

Despite lower income, Globe?s board of directors declared the first semi-annual cash dividend of P32 per common share, payable to shareholders of record as of Feb. 17. A total of P4.2 billion in dividends will be paid on March 10.

The company was forced to introduce various service offerings that complemented unlimited texting packages and its unique per-second voice call offer last year.

Operating expenses and subsidy rose 11 percent year-on-year to P25.5 billion in 2008, as the company spent more in maintaining a larger broadband and cellular network and subscriber base.

Despite the drop in profits, the telecom provider said it recorded its highest quarterly revenue performance in the fourth quarter, with service revenues of P16.3 billion, up 5 percent from the third quarter, and topping the previous record of P16.1 billion in the fourth quarter of 2007.

It attributed the record performance to strong holiday demand, spurred by compelling mobile and broadband offers launched in the final quarter.

?Our strong top-line performance in the fourth quarter enabled us to regain some of the ground that we lost in the early part of the year. This also gives us momentum going into 2009, even as we brace ourselves for a more challenging year ahead,? said Globe president and chief executive Gerardo Ablaza Jr.

Globe?s mass market brand, Touch Mobile, led the growth, accounting for 70 percent of the 4.4 million net additions in 2008, bringing in more than 3 million incremental SIMs.

The company said it also registered its strongest broadband subscriber take-up in the fourth quarter with an additional 55,000 subscribers, driven by healthy demand for its wireless broadband offer. As of December, Globe had a broadband subscriber base of 234,000, nearly double that of 2007. Roderick T. dela Cruz