Thursday, November 1, 2007

Canada's TELUS Reaches 994,000 Broadband Lines, up 14% YOY

TELUS, the incumbent operator in western Canada, reported that Q3 2007 revenue increased 4.5 percent to $2.31 billion from a year ago. The performance was driven by nine per cent growth in both wireless revenue and wireline data revenue, partially offset by declines in local and long distance wireline revenues. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) increased 3.6 per cent to $987 million due to an increase in wireless EBITDA of eight per cent, while wireline EBITDA decreased by one per cent. Net income in the quarter was $410 million and earnings per share (EPS) were $1.24, up 28 per cent and 32 per cent respectively.

Some highlights:

TELUS wireless

  • Net subscriber >additions remained strong at 134,500, a small 2.0% decrease from the same quarter in 2006. Postpaid additions were 98,200, down 9.6%, while prepaid loading increased by 27% to 36,300

  • Revenues increased by $95 million or 9.4% to $1.1 billion in the
    third quarter of 2007, when compared with the same period in 2006

  • Wireless data revenue increased $42 million or 56% due to migration
    to full function personal data devices and increased text messaging

  • ARPU decreased by 1.3% to $64.80 as a result of increased voice re-price due to competitive pressures. The data component continued to increase, up by 41% to $7.20

TELUS wireline

  • Revenues increased by $4 million or 0.4% to $1.2 billion in the third quarter of 2007, when compared with the same period in 2006. Strong data growth offset declines in local and long distance revenues

  • Data revenues increased by $36 million or 8.7% due to strong year- over-year high-speed Internet growth and enhanced data and hosting services

  • TELUS added 31,300 net high-speed Internet subscribers, building TELUS' high-speed base to 994,000, a 14% increase from a year ago.

  • Network access lines (NALs) declined by 35,000 in the quarter. Total NALs were down 3.0% from a year ago, reflecting continued residential line losses from ongoing competitive activity and wireless substitution partially mitigated by an increase in business access lines.

See also