Telus' Q2 wireline revenue increase shows continued gains in video, broadband data

Telus' (Toronto: T.TO) ongoing moves to expand its wireless and wireline service portfolios helped drive Q2 2011 revenue up 6.4 percent to CAD 2.55 billion (USD 2.56 billion).

The revenue increase was the result of about a 10 percent in wireless revenue and 3 percent growth wireline growth. Both the wireless and wireline divisions reported that they saw continued growth in delivering broadband data services to customers.

Telus Q2 2011 earnings

Click here for a visual breakdown of Telus' Q2 2011 earnings report

Driven by growth in data and equipment revenues that were partially offset by expected declines in local and long-distance voice revenues, Telus' external wireline revenues were up 3.1 percent or CAD 37 million (USD 37.2 million).

Darren Entwistle, TELUS President and CEO in the Q2 2011 earnings release, said that the wireline unit's "growth is supported by solid TELUS TV and high speed Internet customer additions of 59,000 on a combined basis, up 84 percent year over year," adding that "TELUS' TV client base surpassed 400,000 customers this quarter while our voice business yielded the lowest level of consumer line losses in five years."

Here's a breakout of Telus' key wireline metrics:

  • Wireline Voice Losses: While Telus did see expected 4.2 percent network access line (NAL) loss to 3.68 million due to cable competition and wireless substitution, residential NAL losses of 31,000 improved by 20,000 year over year, a factor it attributes to bundling voice with its Optik broadband data and voice services. On the business side, NALs increased by 7,000 due to increases in wholesale lines.
  • Broadband and Data: In the wireline side of Telus, broadband was a key growth engine. During the quarter, Telus added 13,000 new Optik broadband subscribers due to what Telus said was a "pull through effect of Optik TV sales" in addition to ongoing broadband service expansion. At the same time, growth in Internet and enhanced data services and TV sales drove up total data service and equipment revenues were up 14 percent, or CAD 78 million (USD 78.5 million).
  • Video Growth: Telus' bet on IPTV continues to pay off as the service provider signed up 46,000 new Optik TV subscribers in the second quarter, representing a 59 percent increase over the same quarter last year. As of the end of the quarter, Telus had 403,000 Opitk TV subscribers, a 77 percent increase over Q2 2010.

Given the Q2 growth Telus reported in its wireless and wireline units, the service provider has decided to revise its original consolidated revenue outlook for 2011 to CAD200 million (USD 201.3 million) to CAD 300 million (USD 301.9 million).

For more:
- see the earnings release

Related articles:
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