Net Income at Telus up 30% in recent quarter
Telus Corporation today reported its financial results and subscriber counts for the third quarter of 2011.
The company reported operating revenues of $2.6 billion for the quarter, up 6.5% from the same quarter a year earlier. Net income $326 million, up a whopping 30% from $251 million in same period a year earlier driven by three non-recurring items. Adjusted for the non-recurring items, net income was still up by 12% over the third Quarter of 2010.
The following is an overview of Telus results by division for the second quarter:
External revenues increased by $115 million or 9.0% to $1.4 billion in the third quarter of 2010, compared to the same period a year ago, driven by the increasing subscriber base and higher average revenue per customer driven by data.
Wireless data revenue increased by $153 million or 53 per cent to $444 million this quarter. Data ARPU (average revenue per user) increased by $6.37 or 44 per cent to $20.90. These increases were due to accelerated adoption of smartphones and related data plans, growth of mobile Internet devices and tablets, and higher roaming revenues.
Blended ARPU increased by $1.77 or 3.0 per cent to $60.52 as 44 per cent data ARPU growth more than offset a 10 per cent voice ARPU decline. This is the fourth consecutive quarter of year-over-year ARPU growth.
Wireless net additions this quarter of 114,000 were down 25 per cent year over year and included 133,000 postpaid subscribers and a loss of 19,000 lower ARPU prepaid subscribers. Total wireless subscribers of 7.2 million are up 5.2 per cent from a year ago and the proportion of high value postpaid subscribers increased 1.3 points to 83 per cent.
Smartphones represented 70 per cent of postpaid gross additions in the third quarter, as compared to 38 per cent a year ago. Smartphone subscribers now represent 48 per cent of the total postpaid subscriber base as compared to 28 per cent a year ago.
External landline revenues increased by $46 million or 3.9 per cent to $1.23 billion in the third quarter of 2011, when compared with same period a year ago. This growth was generated by increasing data revenues, partially offset by declines in local and long-distance revenues.
Data service and equipment revenues increased by $82 million or 15 per cent, reflecting growth in TELUS TV services, growth in Internet and enhanced data services.
Telus TV additions of 50,000 increased by 32 per cent over same period last year. The Telus TV subscriber base of 453,000 is up 70 per cent from a year ago.
Optik High Speed Internet net additions of 22,000 increased 47 per cent from a year ago due to the pull through effect of Optik TV sales, as well as continued broadband service expansion.
The total number of phone lines declined 4.0 per cent from a year ago to 3.6 million, which is the slowest rate of decline in two and a half years. Residential lines declined by 6.3 per cent, due to competition and wireless substitution. Residential phone losses of 30,000 improved by 9,000 due to the pull-through effect of bundling offers with Optik services. Business NALs decreased by 13,000 due to ongoing competition in the small and medium business market and conversion to IP services.
The following are Telus’ landline, wireless, internet and television subscriber counts as of September 30, 2011 (numbers in parenthesis are subscribers totals from September 30, 2010).
- Landline Telephone Residential – 1,952,000 (2,083,000)
- Landline Telephone Business – 1,689,000 (1,711,000)
- Landline Telephone Total – 3,641,000 (3,794,000)
- Wireless Postpaid – 5,982,000 (5,596,000)
- Wireless Prepaid – 1,229,000 (1,256,000)
- Wireless Total – 7,211,000 (6,852,000)
- High Speed Internet – 1,218,000 (1,149,000)
- Dial Up Internet – 48,000 (68,000)
- Total Internet – 1,266,000 (1,217,000)
- Telus TV – 453,000 (266,000)
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