VANCOUVER – Fourth quarter results released today from Telus show consolidated operating revenue increased by 6.3% compared to Q4 2017 to $3.8 billion.
Growth was driven by higher wireless network revenue and wireline data services revenue growth, as well as higher wireless equipment revenue, the company said in its release this morning.
Earnings before interest, income taxes, depreciation and amortization (EBITDA) increased by 1.1% to $1.2 billion thanks to higher revenue growth and higher wireless equipment margins. However, that growth was partly offset by increased costs to support a growing customer base (it added 164,000 total new customers – of which 112,000 were postpaid wireless subs – in the quarter ended December 31st) and incremental employee benefits expense due to recent business acquisitions (primarily the portion of the former MTS brought on board).
Adjusted EBITDA was up 4.3% when excluding restructuring and other costs from both periods, as well as the MTS net recovery and non-recurring losses and equity losses related to real estate joint ventures in the fourth quarter of 2017, reads the release.
“Through the success of our broadband technology investments, in combination with our culture of putting our customers first, we have demonstrated our ability to consistently drive profitable growth,” said Darren Entwistle, president and CEO, in the release. “Our proven strategy, gives us confidence in our 2019 targets announced today, including revenue growth up to 5% and EBITDA growth up to 6%.”
Added EVP and CFO Doug French: “Telus’ fourth quarter results build on the consistent financial and operational results we delivered throughout 2018, and our operating momentum places our team in a position of strength as we enter 2019. As planned, our net debt to EBITDA ratio progressively moved towards the upper-end of our guideline and finished the year at 2.54- times, on the back of EBITDA growth of nearly 5%.
“For 2018, we delivered healthy free cash flow growth of 24%, reflecting solid EBITDA growth and lower capital expenditures as planned. In 2019, we expect to generate robust free cash flow driven by continued profitable customer growth and lower capital expenditures before spectrum of $2.85 billion, despite an increase to cash taxes due to a one-time catch-up payment,” added French.
In the quarter, Telus added a total of 164,000 new customers, up 5.1% from the prior year’s Q4. The higher net additions included 112,000 wireless postpaid net additions, 28,000 high-speed Internet subscribers and 24,000 Telus TV customers.
Its total wireless subscriber base of 9.2 million, up 3.6% from a year ago, “reflecting a 4.2 per cent increase in our postpaid subscriber base to 8.3 million, while our prepaid base of 924,000 remained relatively stable. Our high-speed Internet connections of 1.9 million are up 6.6 per cent over the last twelve months, while our Telus TV subscriber base stands at 1.1 million,” added French.
For the whole release, click here.
