VANCOUVER – “Robust customer growth” helped to lift fourth quarter revenues and profits at Telus, the company said Thursday.
For the period ended December 31, consolidated operating revenue increased by 4.9% to $3.5 billion over the same quarter a year ago, reflecting growth in wireless network revenue and wireline data services.
Earnings before interest, income taxes, depreciation and amortization (EBITDA) increased by 46% to $1.1 billion due to higher revenue growth and lower restructuring and other costs year-over-year, partially offset by higher acquisition and retention costs. Adjusted EBITDA was up 4.7% when excluding certain costs, including restructuring and other costs, which was impacted by the transformative compensation expense of $305 million in the same period a year ago.
Net income of $282 million increased by $195 million over the same period last year, while adjusted net income of $328 million was up 3.8% as EBITDA growth was partially offset by higher depreciation and amortization which the company said reflected investments in its broadband networks and business acquisitions.
In wireless, network revenue increased by 5.4% to $1.8 billion, reflecting postpaid subscriber growth, including smartphone adoption and subscribers Telus acquired from MTS, higher ARPU as customers move to higher-rate plans, including Premium Plus, and increased data consumption.
In wireline, data services and equipment revenue increased by 6.0% to $1.1 billion, reflecting increased Internet and enhanced data service revenues from continued high-speed Internet subscriber growth and higher revenue per customer, growth in business process outsourcing revenues inclusive of recent acquisitions and foreign exchange impacts on foreign operations, higher Telus Health revenues driven by organic growth through additional professional services and support revenue, and through acquisitions, and an increase in Telus TV revenues from subscriber growth.
In the quarter, Telus added 156,000 new postpaid wireless, high-speed Internet and Telus TV customers, up 29,000 over the same quarter a year ago. The higher net additions included 121,000 wireless postpaid net additions, 21,000 high-speed Internet subscribers, and 14,000 Telus TV customers. The company’s total wireless subscriber base of 8.9 million is up 3.8% from a year ago, reflecting a 5.7% increase in its postpaid subscriber base to 8.0 million. High-speed Internet connections have increased 5.3% to more than 1.7 million over the last twelve months, while the Telus TV subscriber base of 1.1 million is higher by 3.7%.
"The fourth quarter capped a strong year where we attained robust customer growth while achieving our annual revenue and EBITDA targets for the seventh consecutive year in a row”, said president and CEO Darren Entwistle, in a statement. “This proven, year-in-year-out execution by our team, gives us confidence in our 2018 targets announced today, including revenue growth up to 6 per cent and EBITDA growth up to 7 per cent. In addition, outlook for free cash flow is expected to be up to $1.4 billion."
For 2018, Telus is projecting revenue growth in the range of 4% – 6%, and adjusted EBITDA growth of 4% – 7%.
The full details of Telus’ Q4 2017 financial results are available here.
