Canada's Telus Posts Increases in First-Quarter Financials
Published on: 10th May 2014
By: Ian Mansfield
Canada's Telus has reported its first quarter financial results and posted decent improvements in both revenues and profits.
Revenues were 5 percent higher for the three month period at C$2.9 billion, while net profits rose by 4.1 percent to C$377 million. Free cash flow of $291 million was down $67 million, largely reflecting higher cash income taxes, as well as increased capital expenditures.
Consolidated revenue growth was generated by 5.6 percent growth in wireless revenue and 4.4 percent growth in wireline revenue. In wireless, revenue was primarily driven by subscriber growth and increased data usage from continued smartphone adoption. Wireline revenue was primarily driven by data revenue growth of 10 percent, generated by ongoing robust Telus TV and high-speed Internet subscriber growth, and increasing revenue per customer.
In the first quarter, Telus attracted 48,000 net new wireless postpaid customers, 27,000 TV subscribers and 21,000 high-speed Internet customers. The total Telus TV subscriber base is up 18 percent from a year ago to 842,000, while high-speed Internet connections are up 5.5 percent to 1.4 million.Blended ARPU (excluding Public Mobile) of the wireless customer base increased by 2 percent to $61.24, reflecting Telus' fourteenth consecutive quarter of year-over-year growth in blended ARPU.
Postpaid net additions of 48,000 were partially offset by a loss of 36,000 lower-ARPU prepaid subscribers (excluding Public Mobile) for total net additions of 12,000, compared to 33,000 a year ago. The total wireless subscriber base (excluding Public Mobile) was up 1.5 percent from a year ago to 7.8 million, while the proportion of high-value postpaid subscribers represents 87 percent of the base.
Smartphone subscribers now represent 78 percent of Telus' postpaid base, up from 68 percent a year ago.