Canada's TELUS reported Q2 revenue of C$2.4 billion, an eight per cent increase from a year ago. The performance was driven by nine per cent growth in wireless revenue and 20 per cent growth in wireline data revenue. Wireless net additions were a second quarter record at 175,600. Earnings before interest, taxes, depreciation and amortization (EBITDA) as adjusted increased by 3.5 per cent when compared to the same period a year ago. Net income in the quarter was C$267 million and earnings per share (EPS) were C$0.83, up 5.5 per cent and nine percent, respectively, compared to the same period in 2007.
Some highlights:
TELUS wireless
- External revenues increased by $94 million or 9% to $1.14 billion in the second quarter of 2008, compared with the same period in 2007.
- Wireless data revenue increased $55 million or 54% due to the continued adoption of full function smartphones and increased adoption of data services such as text messaging, web browsing and downloads.
- ARPU (average revenue per subscriber unit per month) declined by 1.4% to $62.73 compared to the same quarter a year ago. The fast-growing data component of $9.17, represented 15% of ARPU, while the voice component continued to decline as a result of the increased prepaid subscriber base, lower pricing, including use of included-minute rate
plans and lower inbound roaming . - Net subscriber additions increased 37% to 175,600 from the same quarter in 2007, a TELUS second quarter record. Postpaid net additions were 157,200, an increase of 59%, while net prepaid loading decreased 37% to 18,400. These results include those from TELUS' postpaid value brand and service which was launched in late March 2008.
TELUS wireline
- External revenues increased by $76 million or 6.5% to $1.26 billion in the second quarter of 2008, when compared with the same period in 2007, as data growth more than offset the declines in local revenues.
- Data revenues increased by $87 million or 20% due to revenues from the two January acquisitions (Emergis and Fastvibe), increased enhanced data and hosting services, as well as high-speed Internet subscriber growth. When adjusted for the two acquisitions and a regulatory adjustment in the second quarter of 2007, underlying data growth was approximately 7%.
- Long distance revenues increased by $7 million due to a one-time negative adjustment of $13 million recorded in the same period a year ago with the implementation of a new converged billing and client care system in Alberta.
- TELUS added 23,600 net high-speed Internet subscribers, a 70% increase from a year ago. The prior year's additions were temporarily constrained by the implementation of a new billing and client care system in Alberta that temporarily reduced order processing capability.
- EBITDA as adjusted of $431 million declined by $2.6 million or 0.6% due primarily to increased cost of sales, including TELUS TV, and initial costs for implementing enterprise customer contracts.
- Network access lines (NALs) declined by 40,000 in the quarter, and 3.4% from a year ago, reflecting a slight sequential improvement. Consistent with experience in recent years, residential NAL losses were due to ongoing competitive activity and wireless substitution, partially mitigated by an increase in business access lines.
