VANCOUVER – Higher wireless and wireline data services revenue helped to power first quarter profits and revenues at Telus, the company said Thursday.
Consolidated operating revenue of $3.5 billion was up 3.8% from the same period a year ago.
Earnings before interest, income taxes, depreciation and amortization (EBITDA) increased by 8.7% to $1.4 billion due to higher revenue growth and wireless equipment margins, growth in wireline data service margins, the implementation of accounting standard IFRS 16 on certain expenses, as well as EBITDA contribution from its customer care and business services (CCBS) and Telus Health businesses. This growth was partly offset by declines in wireline legacy voice and legacy data services and a decline in the EBITDA contribution from its business services. When excluding restructuring and other costs, Adjusted EBITDA was up 8.6%.
Telus’ net income grew 6.1% to $437 million year-over-year as EBITDA growth was partly offset by higher depreciation and amortization due to growth in the company’s asset base, resulting from investments in its broadband technologies and from business acquisitions, as well as increased financing costs.
“Telus achieved strong financial and operational results in the first quarter, including high quality smartphone-centric mobile phone net additions and vigorous connected device growth in wireless, alongside ongoing robust wireline customer growth”, said president and CEO Darren Entwistle, in the news release announcing the results. “Without question, our continued strong performance is owing in no small part to our team’s unparalleled dedication to providing exceptional customer experiences. Telus, once again, achieved industry-leading wireless loyalty, with a record first quarter low mobile phone churn of 1.02 per cent. This unrelenting commitment to our Customers First promise is buttressed by our meaningfully differentiated product offerings, as well as the ongoing significant investments we are making synergistically in our world-leading broadband network and technologies across both our wireless and wireline operations.”
In wireless, external revenue increased by 1.8%, reflecting network and equipment and other service revenue growth of 1.4% and 3.9% respectively. Network revenue growth was driven by a 4.9% increase in its subscriber base, partly offset by lower mobile phone ARPU from declining chargeable data usage, the competitive environment putting pressure on base rate plan prices including larger data buckets and the changing customer mix.
In wireline, external revenue was up 6.4% driven by data services revenue growth of 12%, reflecting higher CCBS revenues due to increased business volumes from organic growth and business acquisitions, increased Internet and enhanced data service revenues from higher revenue per customer and continued Internet subscriber growth, increased Telus Health revenues driven by business acquisitions and organic growth, revenues from its home and business smart technology (including security) service offerings and increased Telus TV revenues from subscriber growth.
In the quarter, Telus added 99,000 new wireless, Internet and Telus TV customers, up 33,000 or 50% over the same quarter a year ago. The higher net additions included 11,000 mobile phones, 49,000 mobile connected devices, 22,000 Internet subscribers and 17,000 Telus TV customers.
The company’s total wireless subscriber base of 9.7 million is up 4.9% over the last twelve months, reflecting a 3.1% increase in its mobile phones subscriber base to 8.5 million and a 19% increase to its connected devices subscriber base to 1.3 million. Internet connections of 1.9 million are up 7.4% and the Telus TV subscriber base stands at 1.1 million.
Click here for Telus’ full financial results for the first quarter of 2019.
