Telus Q3 Profit Rises 30% Thanks To A Strong Wireless Showing

by Gaurav Kheterpal on November 7, 2011

It’s been an eventful last quarter for Telus. In August, the carrier spent $7 million to purchase land on Kamloops’ South Shore in order to build a brand spankin’ new data center. Not to be left behind in the race for 4G, Telus upgraded its wireless network to HSPA+ dual cell in Atlantic Canada.

In September, the carrier signed a strategic deal with U.S. based digital signage provider Stratacache to provide digital signage services across Canada. All in all, there were plenty of positives for Telus last quarter and that’s reflected in its quarterly results released Friday which saw its quarterly profit rise by 30 per cent, beat expectations and outperform its ‘Big Two’ rivals.

Being a late mover in the LTE segment, many believe that Telus faces a distinct disadvantage as compared to Rogers and Bell. However, LTE or not, Telus seems unfazed by the competition as it continues to gain share in intensely competitive wireless market.

The carrier announced a $326-million net profit for the third quarter, compared to $251 million in the same quarter a year earlier. Net income rose by 12% while overall revenue increased by 7% to $2.62 billion. Telus would take heart from the fact that it performed well across all major product lines. Both earnings per share and quarterly revenues beat analysts’ expectations. Given its impressive quarterly showing, Telus also reaffirmed its revenue guidance for the full-year 2011.

“TELUS remains committed to our strategy of focusing on data solutions that we initiated in 2000. Our ongoing investments in broadband networks are generating operational and financial momentum as evidenced by strong sales of smartphones, Optik IPTV service and 440,000 new customer connections in the last year. Moreover, TELUS delivered industry leading data revenue growth in both wireless and wireline services at 53 and 15 per cent, respectively, in the third quarter,” President and CEO Darren Entwistle said in a statement.

Telus did especially well in two segments – wireless and TV. The company’s wireless revenues increased by $115 million or 9.0% to $1.4 billion in the third quarter, compared to the same period a year ago, thanks largely to increased subscriber penetration and higher average revenue per customer. Overall, ARPU increased by $6.37 or 44 per cent to $20.90. In fact, Telus is the only carrier among ‘Big Three’ to report an increase in ARPU, thanks largely to a 53% jump in wireless data revenue.

Telus outbid its rivals in the postpaid segment by adding 133,000 contract subscribers last quarter. Though the number was substantially lower the analyst prediction of 150,000, it still beat Bell (126,854) and Rogers (74,000).

Telus added 50,000 new TV customers in its third-quarter, thereby taking the total number of Optik TV subscribers to 453,000.

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

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