Telus' Q4 wireline revenue rises to $1.3 billion on strong data, IPTV sales
Telus (Toronto: T.TO) reported on Friday that Q4 external wireline revenues rose 4.1 percent, or CAD 52 million (USD 51.5 million), to CAD 1.4 billion (USD 1.38 million) due to an increase in data service and equipment revenues.
However, like other traditional telcos, Telus said that the gain in next-gen wireline services was offset by expected declines in its legacy data and voice business lines.
Driven by strong growth in the TELUS TV subscriber base and high-speed Internet and enhanced data services, TV and high-speed Internet rate increases and higher data equipment sales to businesses, data and equipment revenues increased by CAD 90 million (USD 89.2 million) or 13 percent.
On the consumer side, Telus reported that it added only a total of 41,000 TV services subscribers, including both Optik TV and satellite TV, 15,000 less than what it added in Q4 2011. As of the end of the quarter, Telus had a total of 678,000 TV subscribers, up 33 percent or 169,000 from last year.
Due to ongoing promotion and the pull-through effect of Optik TV sales, Telus added 23,000 new broadband subscribers, ending the quarter with a total of 1.3 million customers. Overall, its broadband subscriber base rose 6.8 percent or 84,000 from a year ago.
Following the industrywide trend, Telus reported that network access lines declined 5.2 percent from a year ago to 3.4 million. Out of that mix, residential lines declined 7.7 percent over 2011 due to ongoing wireless and Internet substitution and competition. Likewise, business lines are down 7,000 in the quarter and 39,000 for the year, reflecting what it says is ongoing price-based competition in the small and medium business market and customer adoption of IP services.
From an overall financial perspective, Telus reported that Q4 2012 revenue rose six percent to CAD 2.85 billion (USD 2.82 billion), while earnings before interest, taxes, depreciation and amortization (EBITDA) increased by more than eight percent to CAD 947 million (USD 939.5 million).
The service provider forecast 2013 revenues to fall in the range between CAD 11.4 billion (USD 11.3 billion) to CAD 11.6 billion (USD 11.5 billion).
Shares of Telus on Friday were trading at CAD 67.07 (USD), up 0.33, or 0.49 percent, in morning trading on the Toronto stock exchange.
- see the earnings release
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