Revenues up, profits down at Telus

4 May 2006

Canada’s second largest telco Telus has reported a first quarter profit of CAD210.1 million (USD190 million) or CAD0.60 per share for the three months ended 31 March, compared with net income of CAD242.2 million or CAD0.67 per share in 1Q 2005 when the company included a big one-time tax gain. 1Q06 revenues rose 5% year-on-year to CAD2.08 billion (USD1.97 billion). Analysts had expected, on average, earnings of CAD0.59 per share and USD2.09 billion in revenue, according to Thomson Financial. The growth in turnover was due in part to strong wireless growth and an increase in broadband internet subscribers. Telus added 92,500 new wireless subscribers in the quarter to reach a total of 4,613,200, helped by strong pre-paid growth, with blended ARPU standing at CAD60.31, up from CAD58.42 a year ago. The number of high speed internet subscribers rose by 38,600 in the quarter, up from 22,200 added in the first quarter of 2005. Telus expects to sign up more than 125,000 new broadband customers in 2006. Telus lost 28,000 fixed network access lines in 1Q as wireline users dropped traditional services for mobile phones and IP competitors such as Shaw and Vonage.

Canada, Telus Corporation, Telus Mobility (old)