VANCOUVER- Western telco Telus reported revenues of $2.1 billion in the first quarter of 2006, a 5.1% increase over the first quarter of 2005.
"(C)ontinued strong wireless performance and excellent high speed Internet and wireless subscriber growth," was behind the results, says the company’s press release.
EBITDA increased 1% (to $862.7 million) due to strong wireless growth, largely offset by decreased wireline profitability this quarter. Free cash flow increased 13% to $640 million during the quarter, a $74 million increase primarily due to the receipt of a cash tax recovery.
"Telus achieved strong growth in high-speed Internet additions of 38,600 reflecting effective marketing programs and improved customer retention," said CEO Darren Entwistle. "This bolsters our platform for Telus Future Friendly Home initiatives like Telus TV. Telus’ 92,500 wireless subscriber net additions represent our best first quarter in five years, and increased average revenue per unit for the thirteenth consecutive quarter contributed to wireless revenue and EBITDA growth of 17%."
During the company’s annual general meeting yesterday, Entwistle gave shareholders a look at what the service’s customer interface looks like (pictured) – including when the call display on TV function deploys.
Entwistle cautioned against thinking Telus will differentiate its product on price saying the company will take "a disciplined approach" featuring "meaningful product differentiation" such as a picture-in-picture option showing time-shifted channels so that hockey fans can get playoff video in multiple screens.
Entwistle also alluded to what might be a fully a-la-carte system when he added customers will be able to take advantage of the digital platform and "watch only what you want to watch and pay for it accordingly." 
Telus TV is set for targeted commercial roll-out in select cities this year and is available in some areas of Calgary and Edmonton right now. The company also announced that employees in BC’s Lower Mainland are about to begin testing the service and it will be available "soon" to customers.
As with most telcos, wireless leads the growth story for Telus, too. Revenues in that division increased by 17% to $882 million in the first quarter compared to Q1 ’05. ARPU (average revenue per subscriber unit per month) improved by $2 to $60. The data component of ARPU increased by 86% to $3.71 as compared to a year ago. Cost of acquisition ("COA") per gross addition increased 21% in the quarter to $429 due to increased promotional and intense competitive activity.
Quarterly net subscriber additions of 92,500, were up 15% from the first quarter of 2005, driven by strong prepaid growth, and postpaid additions of 70,400.
