VANCOUVER – Telus announced a second consecutive quarter of net profit growth of $362 million, an increase of 13.5% over the same quarter in 2012.
First quarter revenue increased by 4.8% to $2.76 billion, compared to the same period a year earlier, driven by increased revenue in the company’s wireless, high-speed internet and Optik TV businesses. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) also increased by 5.4% to $1.03 billion, resulting in a corresponding jump in earnings per share of 14% to $0.56, which reflects the company's mid-April two-for-one stock split.
Telus reported a 6.4% growth in wireless revenue and a 2.9% increase in wireline revenue, which includes Optik TV and high-speed internet. Wireless revenues grew by 6.4% or $89 million to $1.5 billion in the first quarter of 2013, compared to the same period a year ago. This growth was driven by continued growth in data services and subscribers.
Telus reported strong subscriber growth during the first quarter of 2013, with the addition of 59,000 postpaid wireless customers, as well as 34,000 TV subscribers and 16,000 high-speed Internet customers. Those gains were partially offset by a loss of prepaid wireless customers and wired phone lines. Monthly postpaid subscriber churn was 1.11%, down three basis points (bps) from a year ago. Blended churn decreased seven bps to 1.48%, which Telus says its its best first quarter blended churn result in six years.
External wireline revenues increased by $36 million or 2.9% to $1.3 billion in the first quarter of 2013 compared to the same period a year ago. Telus attributes this growth to increased data service revenue, partially offset by declines in legacy voice revenues.
Data service and equipment revenues increased by $64 million or 9.1%, due primarily to strong growth in Telus TV subscribers, high-speed Internet and enhanced data services, combined with TV and high-speed Internet rate increases. Total TV additions of 34,000 were lower by 10,000 over the same quarter last year, as lower gross additions were partly offset by a lower churn rate. The total TV subscriber base of 712,000 increased by 159,000 or 29% from a year ago.
