VANCOUVER – Telus is banking on wireless to power its 2011 financial results.
The telco said this week that it expects its wireless division to see revenues rise 3.5 to 6.5% to between $5.2 billion and $5.35 billion, while its wireline revenues, which includes local and long distance services, will see relatively flat growth between $4.73 billion to $4.88 billion. Overall, consolidated revenue is expected between $9.93 billion and $10.23 billion.
"We plan our 2011 performance to build on the progress achieved in 2010," said EVP and CFO Robert McFarlane, in a statement. "Next year’s results are expected to benefit from the continuation of healthy wireless subscriber loading and accelerating adoption of wireless data services, as well as significantly reduced financing costs due to $2 billion in successful debt financings in the last 12 months at significantly lower interest rates."
Other highlights from Telus’ 2011 financial targets include:
– EBITDA growth of up to 6%, or between $3.7 billion and $3.9 nillion;
– capital expenditures are expected to be similar year-over-year at approximately $1.7 billion; and
– cost reduction continues to be a focus, with a planned investment of approximately $50 million in restructuring costs (estimated $75 million in 2010).
In a note to investors, Dvai Ghose, the managing director and head of Canadian research for Canaccord Genuity, said that Telus’ targets are “largely in line with our forecasts” and that it continues to “strongly recommend” Telus’ shares.
Click here for more on Telus’ plans next year.
