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Wireless revenues help push Telus profits up
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Toronto Star- VANCOUVER—Telus Corp. reported higher net profits and revenues in the second quarter as the Vancouver company expanded its wireless business nearly 10 per cent.
Telus reported early Friday its net profits in the second quarter rose to $324 million or 99 cents a share from $302 million or 94 cents a year ago.
The company, which also revised its revenue guidance higher for the year, said its bottom line benefited from reduced financing costs.
Revenues for the three months ended June 30 increased 6.4 per cent to $2.55 billion from $2.4 billion.
That revenue growth was generated by a nearly 10 per cent expansion of wireless business and three per cent in wireline operations, both driven by strong data growth.
Telus said it added 94,000 new wireless subscribers in the quarter.
“Telus’ strong second quarter results were clearly evidenced by the healthy operating metrics we generated across our broadband wireless and wireline businesses,” president and CEO Darren Entwistle said in an earnings report before stock markets opened Friday.
“Robust wireless postpaid customer additions of 92,000 reflected a record level of smartphone sales. Notably, Telus’ smartphone penetration within our postpaid base is at 42 per cent and growing, driving wireless data revenue growth of 49 per cent and higher average revenue per client, coupled with superior loyalty and retention.”
Based on its strong financial results, Telus said it is increasing its 2011 revenue guidance by $200 million to $300 million based on increases in both the wireless and wireline businesses.
In addition, the telecom operator is raising its capital spending plans to $1.8 billion from $1.7 billion, reflecting an increase in this year’s investment to build a new wireless network.
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