Canadian telecommunications company Telus Corp. (TU,T.TO, T_A.TO) reported Wednesday a profit for the first quarter that increased 6 percent from last year, driven by continued strength in its wireless operations and data revenue growth, as well as increased average revenue per unit.
Earnings per share for the quarter topped analysts' expectations, while and revenues missed their estimates. The company also reaffirmed its earnings and revenue guidance for the full-year 2012.
"TELUS continues to build upon our company's operational momentum as we delivered the most TV, high speed Internet and wireless client net additions, the highest wireless ARPU and the lowest wireless churn amongst our Canadian telco and cableco peer group," President and CEO Darren Entwistle said in a statement.
The Vancouver, Canada-based wireless giant reported net income of C$348 million or C$1.06 per basic share for the first quarter, up from C$328 million or C$1.00 per share in the prior-year quarter.
On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of C$1.04 per share for the first quarter. Analysts' estimates typically exclude special items.
Operating revenues for the quarter grew 4.0 percent to C$2.63 billion from C$2.53 billion in the same quarter last year, but missed eight Wall Street analysts' consensus estimate of C$2.65 million by a whisker.
The revenue growth reflects a 6 percent year-over-year growth in wireless revenues generated from an increasing subscriber base as well as a 2 percent growth in wireline revenues, both driven by very strong data growth.
The company added 63,000 postpaid subscribers in the quarter, led by continued acceleration of Smartphone, mobile Internet devices and tablet adoption that saw a 36 percent increase in wireless data revenue.
The company noted that wireless average revenue per unit (ARPU) increased 1.7 percent to $58.87 during the quarter, the sixth consecutive quarter of year-over-year ARPU growth.
In wireline, the company added 44,000 TV customers and 16,000 new high speed Internet subscribers, due to the continued bundling success of the Optik brand and continued broadband service expansion, leading to wireline data revenue growth of nearly 13 percent.
"Despite industry leading wireline revenue growth backed by strong operational results from Optik-TV and high speed Internet, profitability for this segment declined but was consistent with internal plans." CFO Robert McFarlane said.
The company also declared a quarterly dividend of C$0.58 per share, payable on April 2 to holders of record at the close of business on March 9, 2012.
Looking ahead to fiscal 2012, the company continues to expect earnings in the range of C$3.75 to C$4.15 per share, on projected consolidated revenue growth of 4 to 6.5 percent. Street is currently looking for full-year 2012 earnings of C$3.98 per share on annual revenues of C$10.86 billion.
In Wednesday's regular trading session, TU is currently trading at $55.67, down $1.36 or 2.38%, while T.TO is trading on the Toronto Stock Exchange at C$57.87, down C$0.29 or 0.50% and T_A.TO is trading at C$55.94, down C$1.06 or 1.86%.
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