While Telus' (T.TO) saw its first quarter net profits drop 17 percent and revenue remained flat, the results surpassed analyst estimates.
By sticking to a healthy diet of expenses and reduced capital spending, the company was able to earn $261.7 million. According to a Thomson Reuters I/B/E/S survey, analysts expected Telus to report earnings of $.67 cents a share. At the same time, revenues remained flat at $2.26 billion.
Network services saw their share of hits and misses. Broadband subscriber additions of 3,000 were down 11,000 from Q1 09, a factor Telus attributes to aggressive pricing and promotions from key cable competitor Shaw Communications.
Television, however, was a different story. During the quarter, 29,000 new subscribers signed up for TELUS TV service, a 45 percent increase over Q1 09. What helped Telus meet its TV subscription milestone were better installation capabilities, expanded broadband covers and the debut of TELUS Satellite TV service last year.
Although Telus had some positive gains in Q1, the service provider has not changed its revenue and earnings outlook for 2010. Troy Crandall, a telecoms analyst at MacDougall, MacDougall & MacTier believes that "management is being a bit conservative in not raising its outlook at this point" because it's still early in the year.
- see the earnings release here
- Reuters has this article
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