Telus is well and truly living up to its promise of a ‘Big 2012‘. Besides massive investments in B.C. and Ontario, the company has significantly expanded its LTE footprint, unveiled a trade-in program and launched a Virtual Private Cloud solution.
Therefore, it was no surprise that in May, Telus comfortably beat its ‘Big Three’ rivals with a 6% jump in first-quarter profit largely due to continued leading wireless performance. With Rogers still feeling the heat, Telus was again expected to report a strong showing for its second quarter.
And it hasn’t disappointed – Telus last week reported that its revenue increased by 4% to $2.66 billion during the second quarter of 2012. The company also grew earnings per share by 2%, hauling in $328 in net income. Therefore, it’s no surprise that Telus has raised its revenue forecast by $50 million to between $10.75 billion and $11.05 billion for fiscal 2012.
As in the first quarter, Telus repeated its impressive performance in the wireless segment. It added 112,000 net new postpaid subscribers in the quarter, up 22 per cent from the same quarter last year. The carrier’s ARPU crossed $60 per month and it witnessed 27 per cent wireless data revenue growth. The carrier said 59 per cent of its postpaid subscribers are now using smartphones, up from 42 per cent in the same quarter last year. Telus reported that its churn rate of 1.39 per cent for postpaid and prepaid customers combined, is the company’s best result in over five years.
Clearly, Telus has outperformed Rogers again this quarter. BCE is due to report its second quarter earnings on Wednesday so it would be interesting to see if the latter can go one step better.
Telus continued its strong showing in the TV segment as well, adding added 43,000 television subscribers. Telus now has nearly 600,000 in total, or 48% more than in the second quarter of 2011. The company added 20,000 new high-speed Internet customers, for a total of 1.28 million subscribers.
“If you look across our wireless business, there really isn’t one indicator that isn’t firing on all cylinders across the board,” said Joe Natale, chief commercial officer. “We continue to add customers – customers that want smartphones,” Natale said.