Telus 2Q Net, Revenue Up On Stronger Wireless, Wireline Revenue

Telus Corp. posted stronger earnings and revenue in its second quarter, driven by improvements in both wireless and wireline data revenue, leading it to nudge its revenue view for the year slightly higher.

The Vancouver telecommunications company earned C$267 million or 83 Canadian cents a share in its latest quarter, up from C$253.1 million or 75 Canadian cents a share a year earlier.

Revenue rose to C$2.40 billion from C$2.23 billion a year earlier.

The Thomson Reuters mean estimate was for second-quarter earnings of 86 Canadian cents a share on revenue of C$2.38 billion.

Wireless revenue rose 9% and wireline revenue was up 20%. Wireless net subscriber additions in the quarter totaled 175,600, a record for the second quarter and up 37% from a year earlier. Average revenue per subscriber unit per month, or ARPU, fell 1.4%. High-speed Internet subscribers additions totaled 23,600, up 70% from a year earlier when additions were temporarily constrained by the implementation of a new billing and client-care system in Alberta.

EBITDA for the quarter was C$917.6 million, up 3.7% from a year earlier.

Following the strong results to date, Telus has raised its revenue guidance for the year slightly to C$9.68-C$9.83 billion from its previous view of C$9.60-C$9.80 billion. Wireline segment revenue is now projected at C$5.03-C$5.10 billion, up from C$4.98-C$5.08 billion and wireless revenue is expected to total C$4.65-C$4.73 billion versus its previous view of C$4.63-C$4.73 billion.

Telus also narrowed its earnings guidance for the year to C$3.50-C$3.70 a share from its previous view of C$3.50-C$3.80 a share.

As reported, the Canadian government's auction of advanced wireless spectrum closed in July, bringing in C$4.25 billion from 15 companies. In the wake of the auction, Canada's wireless phone incumbents, Telus, Rogers Communications and BCE, stand to face increasing competition from new entrants.

Telus said it bid to acquire additional spectrum across the country for a cost of about C$880 million. It said AWS spectrum increases the depth of its strong spectrum position, and is expected to provide capacity for the introduction of future fourth generation service offerings.

Some analysts believe Telus could unveil a strategy to better compete against industry leader Rogers and new entrants in the wireless arena. Telus and BCE are expected to announce plans to migrate their wireless networks to the next-generation GSM network standard, known as HSPA.

Telus said it has expanded its commercial paper program by 50% to C$1.2 billion. "This provides increased flexibility and more attractive short term rates for TELUS, including future funding of commitments related to the AWS wireless spectrum from the recently concluded auction," the company said Friday.

Shares of Telus closed in Toronto Thursday at C$38.95, down 11 Canadian cents.

-Judy McKinnon; 416-306-2100; AskNewswires@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 8th August 2008