Telus profits from wireless growth

Smartphones and data plans drove Telus Corp.’s average revenue per wireless customer to increase by 2.5 per cent in the second quarter of 2011, the company reported in its quarterly results. Telus wireless customers’ average data revenue rose from $5.45 to $19.25—an increase of 39 per cent—due to the accelerated adoption of smartphones, data plans, mobile Internet devices and tablets, and higher roaming revenues, the company said in a release. Blended average revenue per customer increased by 2.5 per cent as revenue from voice services declined. Telus’s wireless net additions in the quarter totaled 94,000, including 92,000 postpaid customers, with smartphones representing 61 per cent of postpaid gross additions. Smartphone subscribers represent 42 per cent of the company’s total postpaid subscriber base, compared to 25 per cent at the same time last year. Wireless net additions declined by 24 per cent, year over year, due to the loss of 32,000 postpaid subscribers in a federal service contract, the company said. “Robust wireless postpaid customer additions of 92,000 reflected a record level of smartphone sales,” Darren Entwistle, Telus’s president and CEO, said in the release. “Notably, TELUS’ smartphone penetration within our postpaid base is at 42 per cent and growing, driving wireless data revenue growth of 49 per cent and higher average revenue per client, coupled with superior loyalty and retention.” Telus’s wireline revenue also increased in the second quarter, up 3.1 per cent from last year. Its 46,000 TV additions marked a 59 per cent increase over last year, which the company attributed to its successful Optik TV brand and expanded coverage. Telus’s second quarter revenue of $2.55 billion marked a 6.4 per cent increase over last year.

Telus profits from wireless growth

Brief | August 5, 2011

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