Canadian telecommunications company Telus Corp. (TU: Quote,T.TO: Quote,T_A.TO: Quote) reported Friday a profit for the second quarter that edged up 1.2 percent from last year, driven by strong wireless results and wireline data revenue growth, as well as increased average revenue per unit.
The company also marginally raised its revenue guidance for the full-year 2012, citing positive year-to-date results and generally favorable outlook for balance of the year.
"Our second quarter results continue to demonstrate that our focus on investing in our broadband data networks and services, whilst providing a differentiated customer experience, continues to pay off in the competitive Canadian marketplace," President and CEO Darren Entwistle said in a statement.
"This is evidenced by a combined 63,000 new TV and Internet customers, 48 per cent growth in the TELUS TV subscriber base, 112,000 additional wireless postpaid customers up by 22 per cent, industry leading monthly revenue per customer of more than $60 per month and 27 per cent wireless data revenue growth," Entwistle added.
The Vancouver, Canada-based wireless giant reported net income of C$328 million or C$1.00 per share for the second quarter, up from C$324 million or C$0.98 per share in the prior-year quarter.
On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of C$1.01 per share for the quarter. Analysts' estimates typically exclude special items.
Operating revenues for the quarter grew 4.3 percent to C$2.67 billion from C$2.55 billion in the same quarter last year, and matched seven Wall Street analysts' consensus estimate of C$2.67 million.
The revenue growth reflects 7 percent year-over-year growth in wireless revenues amid 27 percent data revenue growth from an increasing subscriber base as well as a 1.5 percent growth in wireline revenues.
The company added 112,000 new postpaid wireless subscribers in the quarter, up 22 percent from last year, led by continued acceleration of Smartphone adoption and achieving the best churn rate in over five years of 1.39 percent.
The company noted that wireless average revenue per unit (ARPU) increased 2.4 percent to $60.29 during the quarter.
In wireline, the company added 43,000 TELUS TV customers and 20,000 new high speed Internet subscribers, due to the continued bundling success of the Optik brand and services.
The company also declared a 10.9 percent increase in quarterly cash dividend to C$0.61 per share, payable on October 1 to holders of record at the close of business on September 10, 2012.
Looking ahead to fiscal 2012, the company marginally raised its revenue guidance by C$50 million to a range of C$10.75 billion to C$11.05 billion from the prior range between C$10.70 billion and C$11.00 billion. Analysts currently expect revenues of C$10.84 billion for the year.
"As well, we continue to focus on efficiency, particularly in the legacy areas of our wireline business, which was reflected in our May announcement to double our estimate of 2012 restructuring expenses to $50 million," CFO Robert McFarlane noted.
In Friday's regular trading session, TU is currently trading at $61.69, up $1.11 or 1.83%, and T.TO is trading on the Toronto Stock Exchange at C$63.23, up C$0.84 or 1.35% and T-A.TO is trading at C$61.69, up C$0.68 or 1.05%.
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by RTT Staff Writer
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