Telus Corporation today reported its financial results for the first quarter of 2011.
The company reported operating revenues of $2.5 billion for the quarter, up 6.5 percent from the same quarter a year earlier, thanks to an eleven percent growth in wireless revenue and a two percent increase in wireline revenues.
Net income jumped 20.1% in the quarter to $328 million, up from a depressed $273 million in same period a year earlier.
The following is an overview of Telus results by division for the quarter ending march 31, 2011.
External revenues increased by $131 million or 11.1% to $1.31 billion in the first quarter of 2011, compared to the same period a year ago, driven by a 6.5% increase in the subscriber base and higher revenue per customer.
Wireless data revenue of $366 million increased by $112 million while average data revenue per subscriber climbed by $4.57 or 35% to $17.71. The increases were due to accelerated adoption of smartphones, growth of mobile Internet devices and tablets and the use of related data plans and applications, as well as higher roaming revenues.
Blended Voice and Data ARPU (average revenue per subscriber unit per month) rose 3.7% to $57.89 compared to the same quarter a year ago. This is the second consecutive quarter of year-over-year growth in quarterly ARPU. Data ARPU growth of 35% exceeded the voice ARPU decline of 5.8%.
Total net subscriber additions of 32,000 declined by 37% reflecting the loss of a federal wireless service contract to a competitor (approximately 16,000 postpaid subscribers in the quarter), as well as increased competitive marketing intensity from new entrants and new incumbent brands not in, or fully in, the market one year ago. Postpaid subscriber growth was 52,000 while prepaid subscribers declined by 20,000.
Smartphones represented 54% of postpaid gross additions in the first quarter, as compared to 33% in the same period last year. Smartphone subscribers now represent 38% of total postpaid subscribers compared to 22% a year ago.
By the March 2011, Telus has 7,003,000 wireless subscribers, up 6.5% from the end of March 2010. The number consisted of 1,246,000 prepaid and 5,757,000 postpaid customers. The average monthly minutes of use per subscriber was 324 down 9.7% from 359 minutes a year earlier.
Wireline includes phone, internet and IPTV
Landline revenues increased by $23 million or 2% to $1.22 billion in the quarter driven by growth in data revenues, as well as a non-cash gain from the call centre acquisition partially offsetting continued declines in traditional voice local and long-distance revenues.
The total number of installed phone lines declined by 200,000 or 5.1% from a year earlier to 3.7 million. Residential losses were 160,000 while business losses were 40,000.
Data revenues increased by $61 million or 11%, reflecting growth in Internet and enhanced data services, strong TELUS TV growth, increased data equipment sales and rentals, and two months of consolidated revenues from Transactel.
The company added 16,000 high speed internet and 44,000 IPTV customers in the quarter.
The following are Telus’ landline, wireless, internet and television subscriber counts as of March 31, 2011 (numbers in parenthesis are subscribers totals from December 31st, 2010).
- Landline Telephone Residential - 2,013,000 (2,046,000)
- Landline Telephone Business - 1,695,000 (1,693,000)
- Landline Telephone Total - 3,708,000 (3,739,000)
- Wireless Postpaid - 5,757,000 (5,705,000)
- Wireless Prepaid - 1,246,000 (1,266,000)
- Wireless Total - 7,003,000 (6,971,000)
- High Speed Internet - 1,183,000 (1,167,000)
- Dial Up Internet - 56,000 (62,000)
- Total Internet - 1,239,000 (1,229,000)
- Telus TV - 358,000 (314,000)