Telus Q1 revenues rise to $2.5B on strong wireline, wireless service growth

Telus (Toronto: T.TO) reported Q1 2011 revenue of $2.5 billion, an increase of 6.5 percent, with 11 percent growth in wireless and about 2 percent growth in the wireline segment.

Telus's wireline division results reflected strong gains in both broadband and TV services.

During the quarter, the service provider added 44,000 TV customers and 16,000 broadband Internet subscribers due to the ongoing success of bundling its Opitk brand and services. These efforts helped to drive up Telus' wireline data service and equipment revenue growth by 11 percent.

"Underpinned by our strategic network investments and TELUS' continued momentum in the market, we are generating accelerating sales of smartphones and continued strong Optik TV and High Speed Internet sales," said Darren Entwistle, TELUS President and CEO in the earnings release.

The telco's first quarter earnings before interest, taxes, depreciation and amortization (EBITDA) of $986 million increased by 4.6 percent due to the revenue growth, offset in part by costs to acquire and retain wireless customers and support Optik TV subscriber growth.

As expected, Telus' network access lines (NALs) declined 5.1 percent to 3.7 million from Q1 2010 as a result of cable competition and wireless substitution. However, residential NAS losses of 33,000 were 17,000 lower than they were last year due to the "pull through effect" of bundling offers with Optik services.

Telus, however, did add 2,000 new business NALs, a result that was partially offset by competition in the SMB market.

For more:
- see the release (PDF)

Related articles:
Wireline in the first quarter of 2011
Telus changes its Usage Based Billing (UBB) tune
Telus Q4: Broadband, TV services drove 46% increase in profit