TELUS Q4 Results: up 7% to $1.2 billion

teluslogoTELUS has reported their Q4 2008 results and specifically the wireless portion increased 7%. Some highlights from the financial report are:
– External revenues increased by $77 million or 6.9% to $1.2 billion in the fourth quarter of 2008, compared with the same period in 2007

– Wireless data revenue increased $72 million or 55% due to the continued adoption of full function smartphones and increased adoption of data services including messaging and social networking

– ARPU (average revenue per subscriber unit per month) declined by 2.4% to $62.16 compared to the same quarter a year ago. The fast-growing data component of $11.17, represented 18% of ARPU, while the voice component continued to decline as a result of competitive pricing pressure

– Net subscriber additions were 148,000 representing a decrease of 8.6% from the same period a year ago. Postpaid net additions were 119,000, an increase of 11%, while prepaid loading decreased by 47% to 29,000. Postpaid additions represented 80% of total net additions

– EBITDA of $492 million was unchanged over the fourth quarter of 2007, as increased network revenue was offset by higher cost of acquisition and retention expenses, and network and other expenses to support the 10% growth in the wireless subscriber base, higher data revenue and the launch of the Koodo basic service brand. Retention expenses increased due to higher retention volumes and continued increases in smartphone adoption

– Cost of acquisition per gross addition increased 10% year-over-year to $388 reflecting slightly higher seasonal advertising, launch advertising for the BlackBerry Storm for which only limited shipments were received in 2008, and higher subsidies on smartphones in response to competitor pricing

– Blended monthly subscriber churn increased slightly to 1.62% from 1.59% a year ago

– Simple cash flow (EBITDA less capital expenditures) decreased by 28% to $256 million in the quarter due to planned higher capital spending to support the start of the HSPA network build-out.

Source: Telus