Telus reports higher revenues despite Alberta challenges

Telus Corp.’s revenues in the three months ended June 30 were up 1.5 per cent to $3.15 billion, compared to $3.1 billion a year earlier, the company reported Friday. It said in a press release the increase was “driven by continued higher data revenue and subscriber additions in both wireless and wireline operations.” Net income was up 22 per cent to $416 million from $341 million in the same quarter last year. The company said that increase reflected growth in earnings before interest, taxes, depreciation, and amortization (EBITDA) “and lower income tax expense partly offset by higher depreciation and amortization expenses and higher financing costs.” Telus said its external wireline revenues increased by one per cent to $1.4 billion compared to a year earlier, “generated primarily by higher data service and equipment revenue.“ President and CEO Darren Entwistle noted in the release the company saw revenue and subscriber increases “despite the economic challenges in Alberta.” Doug French, Telus’ chief financial officer, said in a Friday conference call with analysts that the effect of wildfires in Fort McMurray had “a financial impact of $5 million in the second quarter, including foregone revenue and additional costs predominantly in the wireline segments. This impact is expected to be reversed in the future, as Telus will continue to support the recovery efforts in Fort McMurray.” “Wireless network revenues increased by $40 million or 2.6 per cent to $1.6 billion in the second quarter of 2016, when compared to the same period a year ago,” the press release said. “This growth was driven by an increase in data revenue due to subscriber growth, a larger proportion of higher-rate two-year plans in the revenue mix, a more favourable postpaid subscriber mix, and increased data usage from the continued adoption of smartphones and other data-centric wireless devices, as well as greater use of applications and the expansion of ’ LTE network.” Telus’ total customer base also increased by 1.2 per cent to 12.5 million. The company had 8.4 million wireless subscribers, a 0.9 per cent increase from Q2 2015. Wireless average revenue per user (ARPU) was up by 1.4 per cent to $64.38, which Telus said reflected the “twenty-third consecutive quarter of year-over-year growth.” The release added the company’s “high-speed Internet connections have increased 6.4 per cent to 1.6 million,” while its TV subscribers went up by 7.9 per cent to one million over the year.

Telus reports higher revenues despite Alberta challenges

Brief | August 5, 2016

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Telus reports higher revenues despite Alberta challenges

Brief | August 5, 2016

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