VANCOUVER – Telus is predicting 4-6 % consolidated revenue growth in 2009, representing an increase of approximately $375 to $625 million.
The company released its financial targets for next year on Tuesday in a press release. Among its other predictions are:
– EBITDA growth of about 4%, though moderated by increased pension expense in 2009 due to equity market weakness in 2008;
– An increase in wireless revenue of 8-10%, due to continued growth in wireless subscribers, increased smart phone adoption and increased wireless data adoption and usage;
– An increase in wireline revenue of 3%, driven largely by data;
– Capital expenditures of approximately $2.05 billion, in part due to a deferral of $75 million of capital expenditures previously expected to be recorded in 2008, and will include a “significant investment” in Telus’ shared national next generation wireless network build, investments in network infrastructure to improve wireline broadband capabilities, the development of new applications, and cost efficiency initiatives.
“The 2009 targets announced today reflect an overall trend of building on strength. A combination of Telus’ strong balance sheet and cash flow generation continues to allow the company to return significant capital to its shareholders, including, a fifth consecutive increase in the dividend, as well as the substantial reinvestment of capital into the business. This internal investment enables us to exploit our large exposure to the growing Canadian wireless business and broadband wireline opportunities, including business growth in Central Canada, all of which ultimately drive rewarding and profitable future growth and value creation,” said Robert McFarlane, executive vice-president and CFO, in the statement.
