Aug. 6 (Bloomberg) -- Globe Telecom Inc., the second-largest Philippine mobile-phone operator, said revenue growth may slow to a ``low single-digit rate'' this year as accelerating inflation damps consumer spending and competition increases.

``We have to recalibrate and do a more deliberate push,'' President Gerardo Ablaza said at a briefing in Manila today. Service revenue, which grew 11 percent in 2007 according to company filings, will improve in the second half of the year as Manila-based Globe introduces new services and steps up marketing efforts, he said.

Globe and bigger rival Philippine Long Distance Telephone Co. yesterday said earnings are being eroded as the fastest inflation in more than 16 years boosts costs and leaves customers with less money to spend on calls and text messages. Globe reported a 27 percent drop in profit, even after adding a record number of users.

Net income fell to 2.79 billion pesos ($64 million) in the second quarter, from 3.83 billion pesos, and service revenue fell 2.7 percent to 15.6 billion pesos, Globe said yesterday.

The company will start offering Apple Inc.'s iPhone in the Philippines this month, which may help it compete with Philippine Long Distance for higher-income customers who are less affected by rising consumer prices.

Globe and Philippine Long Distance last week agreed to cut text-messaging charges in half for three months after President Gloria Arroyo asked the companies to help government efforts to fight inflation.

To contact the reporter on this story: Francisco Alcuaz Jr. in Manila at falcuaz@bloomberg.net

Last Updated: August 6, 2008 05:43 EDT