Canada’s TELUS reported Q2 revenue of C$2.4 billion, an eight per cent increase from a year ago. The performance was driven by nine per cent growth in wireless revenue and 20 per cent growth in wireline data revenue. Wireless net additions were a second quarter record at 175,600. Earnings before interest, taxes, depreciation and amortization (EBITDA) as adjusted increased by 3.5 per cent when compared to the same period a year ago. Net income in the quarter was C$267 million and earnings per share (EPS) were C$0.83, up 5.5 per cent and nine percent, respectively, compared to the same period in 2007.
Some highlights:
TELUS wireless
- External revenues increased by $94 million or 9% to $1.14 billion in the second quarter of 2008, compared with the same period in 2007.
- Wireless data revenue increased $55 million or 54% due to the continued adoption of full function smartphones and increased adoption of data services such as text messaging, web browsing and downloads.
- ARPU (average revenue per subscriber unit per month) declined by 1.4% to $62.73 compared to the same quarter a year ago. The fast-growing data component of $9.17, represented 15% of ARPU, while the voice component continued to decline as a result of the increased prepaid subscriber base, lower pricing, including use of included-minute rate
plans and lower inbound roaming . - Net subscriber additions increased 37% to 175,600 from the same quarter in 2007, a TELUS second quarter record. Postpaid net additions were 157,200, an increase of 59%, while net prepaid loading decreased 37% to 18,400. These results include those from TELUS’ postpaid value brand and service which was launched in late March 2008.
TELUS wireline
- External revenues increased by $76 million or 6.5% to $1.26 billion in the second quarter of 2008, when compared with the same period in 2007, as data growth more than offset the declines in local revenues.
- Data revenues increased by $87 million or 20% due to revenues from the two January acquisitions (Emergis and Fastvibe), increased enhanced data and hosting services, as well as high-speed Internet subscriber growth. When adjusted for the two acquisitions and a regulatory adjustment in the second quarter of 2007, underlying data growth was approximately 7%.
- Long distance revenues increased by $7 million due to a one-time negative adjustment of $13 million recorded in the same period a year ago with the implementation of a new converged billing and client care system in Alberta.
- TELUS added 23,600 net high-speed Internet subscribers, a 70% increase from a year ago. The prior year’s additions were temporarily constrained by the implementation of a new billing and client care system in Alberta that temporarily reduced order processing capability.
- EBITDA as adjusted of $431 million declined by $2.6 million or 0.6% due primarily to increased cost of sales, including TELUS TV, and initial costs for implementing enterprise customer contracts.
- Network access lines (NALs) declined by 40,000 in the quarter, and 3.4% from a year ago, reflecting a slight sequential improvement. Consistent with experience in recent years, residential NAL losses were due to ongoing competitive activity and wireless substitution, partially mitigated by an increase in business access lines.
http://www.telus.com
