VANCOUVER – "We are on track to exceed all of the 2005 consolidated targets we set a year ago for revenue, earnings and cash flow" said Robert McFarlane, executive vice-president and CFO of Telus, in a press release Friday.
"Notably, we accomplished this despite a four month labour disruption experienced in Western Canada. The acceptance of a new collective agreement in November and the ongoing strong growth in the Canadian wireless industry positions Telus for continued financial success, as reflected in the 2006 targets announced today,” he continued.
“These targets reflect our expectation for strong growth in both revenue and profitability with the target range for consolidated EPS representing a 23 to 33 per cent increase over that expected for 2005.”
Even with capital expenditures increasing, due to deferred capital investments in 2005 as a result of the labour disruption, the company still expects increased free cash flow of up to $1.6 billion in 2006. In addition to the previously announced 38% increase in the quarterly dividend to be paid on January 1, 2006, Telus also announced today a new normal course issuer bid to repurchase up to 24 million shares over the next 12 months."
Some of the 2006 financial targets are:
* 2006 revenues:$8.6 to 8.7 billion, as compared to $8.1 to 8.15 billion predicted for the end of 2005
* 2006 EBITDA of $3.5 to 3.6, as compared to $3.275 to 3.325 billion for the end of 2005.
* Capital expenditures: $1.5 to 1.55 billion, up from approximately $1.3 billion at the end of ’05.
For the wireline segment, EBITDA is expected to be flat to a decline of 3% in 2006 resulting from increased restructuring costs partially offset by continued operating efficiencies. Excluding restructuring and workforce reduction costs, wireline EBITDA is expected to be $1.9 to $1.95 billion, which is approximately flat to $50 million more than that expected for 2005. Wireline revenue growth in the non-incumbent territory in Central Canada is expected to increase 3 to 11% in 2006, while targeting another strong increase in EBITDA.
For the wireless segment, EBITDA growth is expected to increase 18 to 22% as a result of a 15 to 16% increase in revenues (to up to $3.8 billion), continued economies of scale, cost containment and continued strong growth in wireless subscribers. The company figures it will add over 550,000 customers in 2006, the same level as ’05.
For more, go to www.telus.com.
