Telus sees further growth in 2012 after solid Q4

Canadian operator Telus reported fourth-quarter revenues up 5.3 percent to CAD 2.7 billion. EBITDA rose a slower 3.9 percent to CAD 874 million, as the company spent on acquiring mobile customers and expanding its fibre internet and TV services. Net profit improved 4.9 percent to CAD 237 million. The company's free cash flow rose 77 percent to CAD 204 million, as capex fell 9.2 percent to CAD 512 million. Telus increased its dividend 10.5 percent from a year ago to CAD 0.58 per share and said it also made a CAD 100 million contribution to its pension fund in January. Customer connections increased by 475,000 in the 12 months to a total of more than 12.7 million. That includes 107,000 new wireline customers, the first increase since 2004. The company also gained 56,000 new TV customers in Q4, for a total 509,000 at year-end, and added 24,000 more broadband customers in the quarter. At the mobile activities, Telus added a net 129,000 new customers in the quarter, all postpaid, for a total 7.3 million at year-end, up 5.3 percent from 2010. Over half postpaid customers now have a smartphone, and 74 percent of postpaid additions in the quarter included a smartphone. This helped mobile revenues increase 6.5 percent to CAD 1.42 billion in the quarter, and ARPU rose 1 percent to CAD 59.08. For 2012, Telus forecast revenues up 4-6 percent, with 5.5-8 percent growth at mobile and 1.5-5 percent growth at fixed. Annual EBITDA is estimated up 1-6 percent, including 5-9 percent growth at mobile and a roughly flat result at fixed, while EPS should grow 1-3 percent this year. Capex will rise around 3 percent to CAD 1.85 billion, led by mobile capacity upgrades and the LTE roll-out. Fixed capex will fall, but include spending on VDSL2 expansion and new data centres.