VANCOUVER – Telus Corporation reported a 6% growth in revenue to $9.65 billion, and a 5% growth in EBITDA for its fiscal year ended December 31, 2008.
Revenue for its fourth quarter was $2.45 billion, an increase of 5% from a year ago, driven primarily by a 7% growth in wireless revenue and 13% growth in wireline data revenue. Net income for the quarter was $285 million, and consolidated EBITDA decreased by $16 million, due to increased investments in operating efficiency initiatives that resulted in restructuring costs increasing by $32 million, the company’s press release detailed.
"The very fact we are able to invest in value-creating projects such as a new wireless network across Canada during this time of economic uncertainty and change in our industry speaks both to the efficacy of our national growth strategy focused on data solutions and to our company’s financial strength," said Darren Entwistle, president and CEO, in the release.
Wireless data revenue increased $72 million or 55% due to “the continued adoption of full function smart phones”, (Telus launched the touch screen BlackBerry Storm 9530 smart phone in December, and the HTC Touch Pro with Windows Mobile 6.1 and the BlackBerry Pearl 8130 in new colours, earlier in the quarter), plus increased adoption of data services including messaging and social networking.
Net subscriber additions were 148,000, a decrease of 8.6% from the same period a year ago, and ARPU (average revenue per subscriber unit per month) declined by 2.4% to $62.16 compared to the same quarter a year ago. Overall, wireless subscribers grew by 10% to 6.13 million.
Wireline data revenues increased by $62 million or 13%, due to higher revenues primarily from the January acquisition of Emergis, increased enhanced data and hosting services, as well as high-speed Internet and Telus TV subscriber growth (no television subscriber numbers were reported). When adjusted for Emergis and mandated regulatory adjustments, underlying data growth was approximately 3%.
Telus added 19,000 net high-speed Internet subscribers, a 27% decrease from a year ago, due to “increased competition and a maturing market.” Internet subscribers for the fiscal year grew by 3.8% to 1.22 million.
The company met five of its eight original consolidated and segmented targets for 2008. Targets for consolidated revenue, wireline revenue and EBITDA, and wireless revenue were achieved. Consolidated and wireless EBITDA fell below their respective target ranges due to several factors, including lower wireless ARPU, higher subscriber acquisition and retention expenses and costs associated with data growth.
