Telus touts Telus TV and HSPA investments amid lower profits

Vancouver's Telus Communications Company is keeping a positive outlook on its improved Telus TV service and new HSPA network amid a 45 per cent decline in fourth quarter profits. The telecom company’s fourth quarter profits were reported at $156 million compared to $285 million at the same time last year, the company said Friday. “There is no question that the last year was a challenging one economically, but also one where we progressed game-changing capital projects and made significant investments in operational efficiency to improve our cost structure,” Darren Entwistle, Telus’ president and CEO, said in a release. “Combined, these initiatives will launch Telus into its next stage of net income and cash flow growth.” The decline was attributed in part to the state of the Canadian economy and the investments the company made in its new HSPA wireless network, launched in November 2009. Telus’ overall wireless revenue grew by 3.1 per cent during the quarter. Data revenue grew by $40 million, or 20 per cent, over the same period in 2008. This was attributed to the HSPA network and the growth in popularity of smart phones by Research in Motion, Apple and other companies. The company also faced a 2.4 per cent decrease in wireline revenues. “The decline in wireline voice revenues is due to substitution to wireless and Internet services, as well as competition from VoIP service providers (including cable-TV competitors), resellers and facilities-based competitors,” Telus' quarterly report said. Telus said the company’s new Telus IP TV platform, launched in parts of Alberta and British Columbia’s Lower Mainland in February, is expected to “provide differentiation over services provided by cable-TV competitors.” The service allows customers to use a single advanced personal video recorder to record TV programs on up to six televisions. The company said it expects a better fiscal 2010 due to its new infrastructure and some cost cutting measures initiated in 2009.

Telus touts Telus TV and HSPA investments amid lower profits

Brief | February 13, 2010

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