Telus revenue growth accelerates to 3.9% in Q2

Friday 11 August 2017 | 15:27 CET | News

Canadian operator Telus saw its revenue growth accelerate to 3.9 percent in the second quarter, to CAD 3.27 billion, driven by strong growth in its mobile activities, which make up 85 percent of revenue. Adjusted EBITDA rose a slower 3.6 percent to CAD 1.23 billion, due to the extra costs for the high mobile customer growth.

Net income was still down 7.2 percent to CAD 386 million, amid a rise in depreciation, amortisation and financing costs. Free cash flow more than doubled to CAD 260 million from CAD 126 million thanks to lower tax payments. Telus increased its quarterly dividend by 7.1 percent year-on-year to CAD 0.4925 per share. 

Mobile network revenue rose 7.2 percent to CAD 1.7 billion, driven by more customers on higher-rate two-year contracts and taking larger bundles. The acquisition of customers from MTS also added to the growth. Adjusted EBITDA was up a slower 3.6 percent to CAD 809 million, due to increased costs for higher-value smartphone sales and the higher customer volume. 

Telus added 99,000 postpaid subscribers in the quarter, up by over 50 percent from a year ago driven by migration from prepaid, demand for smartphones and targeted promotions. The prepaid base declined by 16,000 compared to March. Blended ARPU rose 3.9 percent to CAD 66.87. 

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