VANCOUVER – Telus saw third quarter revenues grow 3.6% and profits increase 13% on the strength of its wireless unit.
Revenues grew $2.87 billion from $2.77 billion a year earlier, while earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 4.6% to $1.04 billion. EBITDA excluding restructuring and other like costs increased by 5.7% to $1.05 billion.
Net income increased 10.2% from $323 million to $356 million year-over-year, while adjusted net income rose 13% to $365 million.
Telus said that the increase in consolidated revenue was generated by a 5% growth in wireless network revenue and a 3% growth in wireline revenue. Wireless revenue of $1.44 billion benefited from continued subscriber growth, higher average revenue per unit (ARPU) due to increased smartphone adoption and related increased use of data services. Wireline revenue of $1.31 billion was driven by a 9% increase in data revenue, generated by ongoing Telus TV and high-speed Internet subscriber growth and increasing revenue per customer.
Telus recorded 115,000 net new customer connections in the quarter, including 106,000 postpaid wireless customers, 34,000 TV subscribers and 19,000 high-speed Internet customers. The growth in its wireless customer base was supported by an 11 basis point year-over-year decline in monthly postpaid subscriber churn to just 0.99% – the lowest level in over six years.
This growth was partially offset by the modest loss of 2,000 lower-ARPU prepaid subscribers for net additions of 104,000, compared to 111,000 a year ago, and a continued decline in legacy wireline services. Telus' total wireless customer base of 7.8 million is up 3.3% year-over-year, and smartphone subscribers now represent 75% of its postpaid base, up from 63% a year ago.
Total TV additions of 34,000 were lower by 8,000 from the same quarter last year, while the total TV subscriber base of 776,000 increased by 22%from a year ago. High-speed Internet net additions of 19,000 were lower by 7,000 from the same quarter a year ago, while Telus' high-speed subscriber base of 1.37 million is up 5.4% from a year ago.
Total network access lines declined by 4.8% from a year ago to 3.3 million. Residential lines were down 7.4% over last year, reflecting ongoing wireless and Internet substitution and competition. Business lines were down 1.8% over last year, reflecting ongoing price-based competition in the small and medium business market and customer adoption of IP services.
"Telus once again delivered strong results, underpinned by our strategic investments in advanced broadband technology and services, coupled with our unwavering focus on putting customers first and realising operational efficiencies”, said president and CEO Darren Entwistle, in a statement.
“Gaining customers and earning their loyalty is critical to our ongoing success, so we were pleased with the results of the annual CCTS report on customer complaints issued (last) week, which saw complaints by our customers decline significantly for the second year in a row. While we have more work to do on this front, we are clearly delivering a differentiated customer service experience and providing Canadians with a clear reason to choose Telus.”
The Telus Board of Directors declared a quarterly dividend increase of two cents to 36 cents ($0.36) Canadian per share on the issued and outstanding common shares of the company payable on January 2, 2014 to holders of record at the close of business on December 11, 2013.
