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Canada's Telus Posts Higher Profits on Mobile Data Growth
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Canada's Telus has reported that its fourth-quarter revenues rose by 6 percent to reach C$2.85 billion, while net profits jumped by 22.8 percent to C$291 million.
Consolidated revenue growth was generated by an 8 percent increase in wireless revenue, due to continued subscriber and data average revenue per unit (ARPU) growth, and a 13 percent increase in wireline data revenue. Consolidated EBITDA growth primarily reflects higher wireless EBITDA driven by revenue growth and higher margins.
Telus finished the year with 13.1 million customer connections, adding 132,000 connections in the final quarter of the year. In the quarter, Telus added 123,000 new postpaid wireless customers, 41,000 new TV subscribers and 23,000 high-speed Internet customers, partially offset by losses of prepaid wireless customers, phone lines and dial-up Internet.
Telus' total wireless subscriber base of 7.7 million is up 4.5 per cent year over year. Monthly postpaid subscriber churn was 1.12 per cent, down 11 basis points from a year ago, while blended churn decreased 16 basis points to 1.51 per cent. This is the best fourth quarter churn result in six years.
Mobile data revenue increased by $104 million or 22 per cent to $570 million, which makes up 41 per cent of network revenue. Data ARPU increased by $3.64 or 17 per cent to $25.29.
The company also said that it is increasing its cost-cutting measures, which will see an increase in the planned 2013 restructuring charge of C$75 million.
John Gossling, Telus Executive Vice-President and CFO said, "Our 2013 targets announced today show mid-single digit growth in revenue and EBITDA that translates into EPS growth of up to 14 per cent. This is made possible by our planned EBITDA growth not only in the wireless business, but also in wireline, facilitated by on-going major strategic network and technology investments, as well as a continued intense focus on operational efficiency initiatives."
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