Weak Canadian economy drives down Telus Q3 earnings

Telus' lower than expected third quarter earnings reflect the ongoing economic challenges that every service provider is facing. During the quarter, the Vancouver-based telco earnings totaled $261 million, while revenue was $2.25 billion. The telco's third quarter results fell below analyst expectations of 76 cents a share based on revenue of $2.27 billion for Q3 09.

Contributing to Telus' poor third-quarter financial performance was, not surprisingly, its wireline business. In the third quarter, Telus' wireline revenues were down by $43 million or 3.4 percent to $1.4 billion in comparison to Q3 08. During the quarter, Telus saw its local and long distance voice revenues decline.   

Similar to the tier one U.S. telcos, Telus saw its Network Access Lines (NALs) decrease by 44,000 in Q3 to 4.1 million, down 4.3 percent from 2008. Meanwhile, Telus' dedication to bundling services, including TELUS TV, helped to improve residential year-over-year NAL losses.    

These results have driven the telco to lower its 2009 total revenue guidance from $9.01 to $9.1 billion to $9.01 to $9.06 billion. While Telus did increase its wireless revenue guidance by $23.3 million, guidance for the telco's wireline revenue was lowered.  

For more:
- Wall Street Journal via Dow Jones has this article

Related articles
Telus IPTV gains, satellite coverage expands
Telus starts re-selling BCE satellite TV
Cisco Q1: profit drops, but Chambers is confident of recovery
CenturyLink celebrates a profitable Q3
Frontier reports lackluster Q3 performance

Suggested Articles

Frontier Communications is looking to rebound from a disappointing second quarter last month by offering a new managed cloud IT service.

Tyson, Virginia-based GiGstreem raised $10 million in a Series B funding round that was led by RET Ventures with participation from LNC Partners.

Comcast sent its Senior VP of Next Generation Access Networks Elad Nafshi to the ONF conference today to announce its big step on virtualization of the cable…