VANCOUVER – Telus recorded a 4.1% jump in profits driven by results in both its wireless and wireline services.
Consolidated operating revenue grew 5.0% to $2.89 billion, up from $2.76 billion last year, while earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 4.2% to $1.07 billion from $1.03 billion. Net income jumped to $377 million from $362 million in the first quarter of 2013.
The Vancouver-based telco said consolidated revenue growth was generated by 5.6% growth in wireless revenue and 4.4% growth in wireline revenue. In Wireless, revenue was primarily driven by subscriber growth and increased data usage from continued smartphone adoption, while Wireline revenue was primarily driven by data revenue growth of 10%, generated by ongoing Telus TV and high-speed Internet subscriber growth, and increasing revenue per customer.
In the first quarter, Telus recorded 48,000 net new wireless postpaid customers, 27,000 TV subscribers and 21,000 high-speed Internet customers. The total Telus TV subscriber base was up 18% from a year ago to 842,000, while high-speed Internet connections are up 5.5% to 1.4 million.
Telus Wireless
– Wireless network revenues increased by 5.3% to $1.44 billion in the first quarter of 2014, compared to the same period a year ago. This growth was driven by continued subscriber growth and higher blended ARPU as a result of a continued increase in smartphone adoption and data usage;
– Monthly postpaid subscriber churn declined 12 basis points to 0.99 per cent, the lowest first quarter postpaid churn result in seven years;
– Postpaid net additions of 48,000 were partially offset by a loss of 36,000 lower-ARPU prepaid subscribers (excluding Public Mobile) for total net additions of 12,000, compared to 33,000 a year ago. The total wireless subscriber base (excluding Public Mobile) was up 1.5% from a year ago to 7.8 million, while the proportion of high-value postpaid subscribers represents 87% of the base;
– Smartphone subscribers now represent 78% of Telus' postpaid base, up from 68% a year ago.
Telus Wireline
– External wireline revenues grew 4.4% to $1.34 billion in the first quarter of 2014, when compared with the same period a year ago. This growth was generated by increased data revenue, partially offset by declines in legacy voice revenues;
– Total TV net additions of 27,000 were lower by 7,000 from the same quarter last year. The total TV subscriber base of 842,000 increased by 130,000 or 18% from a year ago;
– High-speed Internet net additions of 21,000 increased by 5,000 over the same quarter a year ago. The high-speed subscriber base of 1.4 million is up 74,000 or 5.5% from a year ago;
– Total network access lines (NALs) declined by 24,000 in the quarter compared to 43,000 in the same period a year ago. Total NALs of 3.23 million were lower by 133,000 year-over-year, reflecting an improvement of 40,000 compared to the same period a year ago. This improvement reflects the success of the company’s ‘customers first’ initiatives and bundling strategy, offset by ongoing wireless and Internet substitution and competition.
"Telus delivered strong revenue and profitable growth in the first quarter driven once again by strong results from both our wireless and wireline operations”, said outgoing president and CEO Darren Entwistle, in a statement. “This positive start to the year reflects our longstanding strategic focus on investing in advanced broadband technologies and services, and our commitment to delivering exceptional customer experiences.”
