Telus posts fourth quarter results

Telus Corporation last week reported its financial results and subscriber counts for the fourth quarter of 2010.

The company reported operating revenues of $2.55 billion for the quarter, up 4.4 percent from the same quarter a year earlier, thanks to a nine percent growth in wireless revenue and seven per cent growth in wireline data revenues which more than offset declines in traditional voice services.

Thanks to much lower restructuring cost net income jumped 45.5% in the quarter to $227 million, up from a depressed $156 million in same period a year earlier.

For the entire year, Telus revenues were just under $9.8 billion, up from $9.6 a year earlier. Operating income was $1.9 billion, up from $1.77 billion a year earlier.

The following is an overview of Telus results by division for the fourth quarter:

Wireless

External revenues increased by $113 million or 9.2% to $1.34 billion in the fourth quarter of 2010, compared to the same period a year ago, driven by a 6.9% increase in the subscriber base and higher revenue per customer.

Wireless data revenue of $326 million increased by $87 million or 36% due to increased adoption of smartphones and related data plans and applications, increased sales of mobile Internet keys and tablets, and higher in-bound volumes of data roaming, partly offset by lower roaming rates.

Blended Voice and Data ARPU (average revenue per subscriber unit per month) rose 1.9% to $58.48 compared to the same quarter a year ag. This is the first year-over-year increase in quarterly ARPU since the second quarter of 2007. Data ARPU grew 27% to $16.01 and now accounts for over 27% of total ARPU.

Total net subscriber additions of 119,000 declined by 2.5% reflecting increased competition from new entrants. Postpaid subscriber growth of 109,000 was unchanged from a year ago. Higher valued smartphone subscribers represent 33% of total postpaid subscribers compared to 20% a year ago. Monthly subscriber churn increased slightly by 12 basis points to 1.72%, reflecting increased number of competitors and price discounting in the market.

By the end of 2010, Telus has 6,971,000 wireless subscribers, up 7.8% from the end of 2009. The number consisted of 1,266,000 prepaid and 5,705,000 postpaid customers.

Landline

External revenues decreased by $5 million to $1.21 billion in the final quarter of 2010, when compared with the same period in 2009, due to continued declines in voice local and long distance revenues.

The total number of installed phone lines declined by 55,000 to 3.74 million. Residential losses were 37,000 while business losses were 18,000.

Data revenues increased by $37 million or 6.7% due to TELUS TV subscriber growth, increased Internet, enhanced data and hosting services, and higher managed workplace revenues.

High-speed Internet net additions of 18,000 were 64% higher than the same period a year ago while Telus TV net additions were 48,000, an increase of 45%. The Telus TV subscriber base now totals 314,000, up 85% over last year.

The following are Telus’ landline, wireless, internet and television subscriber counts as of December 31, 2010 (numbers in parenthesis are subscribers totals from December 31st, 2009).

  • Landline Telephone Residential – 2,046,000 (2,223,000)
  • Landline Telephone Business – 1,693,000 (1,743,000)
  • Landline Telephone Total – 3,739,000 (3,966,000)
  • Wireless Postpaid – 5,705,000 (5,290,000)
  • Wireless Prepaid – 1,266,000 (1,234,000)
  • Wireless Total – 6,971,000 (6,524,000)
  • High Speed Internet – 1,167,000 (1,128,000)
  • Dial Up Internet – 62,000 (87,000)
  • Total Internet – 1,229,000 (1,215,000)
  • Telus TV – 314,000 (170,000)

Discuss in our Telus High Speed Internet and Home Phone forum.

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