VANCOUVER – Led by growth in both wireless and wireline, Telus saw profits jump more than 10% for the first quarter ended March 31, 2015.
Consolidated operating revenue increased 4.6% to $3.03 billion, while net income grew 10.1% year-over-year to $415 million. Adjusted net income increased by 11.5% to $427 million. Earnings before interest, income taxes, depreciation and amortization (EBITDA) increased by 5.4% to $1.14 billion, though EBITDA excluding restructuring and other like costs increased by 6.2% to $1.2 billion.
Telus said that consolidated revenue growth was generated primarily by higher data revenue in both wireless and wireline operations, in addition to Telus TV subscriber growth, and growth in business process outsourcing services and Telus Health revenues.
Wireless network revenues increased by 6.4% to $1.54 billion in the first quarter of 2015, when compared to the same period a year ago. This growth was driven by a 19% increase in data revenue, reflecting subscriber growth, increased customer adoption of higher-rate two-year plans, higher data usage from a continued increase in smartphone adoption and other data-centric devices, increased data roaming and the expansion of its LTE network coverage.
External wireline revenues grew 1.2% to $1.36 billion year-over-year, generated by increased data service revenue, partially offset by continued declines in legacy voice revenues and lower data and voice equipment sales.
In the quarter, Telus attracted 37,000 new wireless postpaid customers, 23,000 high-speed Internet subscribers, and 21,000 Telus TV customers. These gains were partially mitigated by the loss of wireless prepaid customers and network access lines. Telus' total wireless subscriber base is up 3.1% from a year ago to 8.3 million (which includes Public Mobile subscribers in both periods), high-speed Internet connections are up 5.8% to 1.5 million, and Telus TV subscribers are up 11% to 937,000.
Free cash flow of $271 million was lower by 6.9% from a year ago as higher EBITDA and lower income tax payments were offset by high capital expenditures due mainly to investments in wireless and wireline broadband infrastructure to support long-term growth, the company said.
Telus credited its ongoing focus on putting customers first for a year-over-year improvement of 8 basis points in monthly postpaid wireless subscriber churn to 0.91 per cent, the seventh consecutive quarter this important metric was below one per cent.
"The positive start to 2015 continues to reflect our team's world-leading engagement and ongoing commitment to delivering the best customer experience amongst our global telecom industry peers each and every day”, said executive chair Darren Entwistle, in the press release. “Indeed, their unwavering dedication in this regard was reflected in the net addition of 81,000 new wireless postpaid, TV and high-speed subscribers in the first quarter."
