Telus Q1 Profit Rises

by Gaurav Kheterpal on May 9, 2011

Telus yesterday reported its first-quarter revenues rose by 6.5% to $2.5 billion, driven largely by wireless revenues which rose by 11%. The company’s net income jumped 20.1% in the quarter to $328 million, up from $273 million in same period a year earlier.

Buoyed by its strong financial performance, Telus announced it will reward shareholders by boosting the quarterly dividend by 4.8% to 55 cents a share, its third increase in the past year. The carrier says it will plan further dividend increases through 2013. There’s certainly no doubt that Telus is gushing cash flow.

Telus reported net income of $328 million or $1.01 per basic share for the first quarter, up from $273 million or $0.85 per basic share in the prior-year quarter. ARPU increased 3.7% to $57.89 during the quarter, the highest since mid-2006. Telus says it added 52,000 new postpaid wireless subscribers while prepaid subscribers declined 20,000. Overall wireless revenues were up by 44%. The carrier’s strategy to focus on smartphone subscribers paid rich dividends as they accounted for 38% of Telus’ postpaid customer base in the quarter, up from 22% a year earlier.

The carrier added 44,000 TV customers and 16,000 highspeed Internet subscribers in the quarter. In the IPTV segment, Telus grew at the expense of Shaw which lost nearly 14,000 basic cable subscribers in its last full quarter.  All in all, Telus had a solid Q1, thanks largely to higher data usage by its smartphone customers and strong demand for its TV and Internet services.

Unlike Rogers and BCE, Telus says it has no plans to own media assets. On the contrary, Telus wants CRTC to introduce more safeguards in the industry and it’s lobbying hard to prevent competitors from keeping the content they own for their own TV services, or for extra video offerings over wireless networks.

Telus Chief executive Darren Entwistle believes any relaxation of foreign ownership rules should be equally applied to all players, irrespective of size.  He says it would be unfair to adopt a set of rules for selective carriers and it defeat the concept of creating a level playing field for all.

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Written by: Gaurav Kheterpal. Follow TheTelecomBlog.comby: RSS,TwitterFacebook, or YouTube.

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