Canadian telecommunications company Telus Corp. (TU, T.TO, T_A.TO) Friday reported a higher fourth-quarter profit, reflecting strong growth in both wireless and wireline data revenues and the success of Optik TV. Earnings per share, however, missed analysts' expectations, while revenues came above their view. The company also reaffirmed its outlook for the full year 2012.
In the fourth quarter, profit attributable to common shares and non-voting shares increased to C$246 million or C$0.75 per share from C$225 million or C$0.70 per share a year ago. On average, 14 analysts polled by Thomson Reuters expected the company to earn C$0.78 per share for the quarter. Analysts' estimates typically exclude special items.
The company noted that net income and earnings per share for both the quarters included favorable income tax-related adjustments of about C$10 million or 3 cents per share.
Operating revenues for the quarter grew 5.3 percent to C$2.69 billion from C$2.55 billion in the same quarter last year, exceeding analysts' estimate of C$2.68 billion. The company attributed the increase in revenues to a 6.5 percent growth in wireless revenue and 4 percent growth in wireline revenue, both driven by strong data growth.
External wireless revenues increased 6.5 percent to C$1.42 billion, driven by an increased subscriber base and higher average revenue per customer driven by data. Data revenue increased 43 percent to C$466 million and data ARPU increased 35 percent from the prior year.
Blended ARPU increased 1 percent to C$59.08. Blended monthly subscriber churn decreased 5 basis points year-over-year to 1.67 per cent, reflecting lower churn on smartphones and success of retention investments, the company stated.
External wireline revenues increased 4 percent to C$1.27 billion, reflecting increasing data revenues.
Quarterly additions of Telus TV increased 17 percent to 56,000 due to the success of Optik TV and Telus TV subscriber base surged 62 percent from a year ago.
In 2011, total customer connections increased 3.9 percent to 12.73 million, helped by continued growth in wireless subscribers including a 107,000 increase in total wireline customers. New customer connections in the year grew 26 per cent to 475,000 additions. Smartphones represented 74 per cent of postpaid gross additions in the fourth quarter.
Darren Entwistle, president and CEO of the company said, "TELUS' fourth quarter and full year 2011 results reflect the success of our strategy of investing in our broadband technology and client experience across our wireless, TV and high-speed Internet services."
For the full year 2012, Telus still expects earnings in the range of C$3.75 to C$4.15 per share and consolidated revenue growth over 2011 of between 4 and 6.5 percent. Analysts expect the company to earn C$4.04 per share, on revenues of C$10.85 billion.
The board has also declared a quarterly dividend of C$0.58 per share, up 10.5 percent from last year, to holders of record March 9, 2012, payable on April 2.
T.TO closed Thursday's regular trading at C$57.21 on the Toronto Stock Exchange.
In US, TU ended on Thursday at $54.82 on the NYSE.
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