TELUS Q1 2010: Increase of 51,000 subscribers and 22% now use a Smartphone

TELUS has reported their Q1 2010 results and it looks like devices like the HTC Hero, Motorola Milestone and the Aple iPhone have helped them increase revenues by 4.2% from this time last year. The report also states that due to Smartphone use data revenue increased by $50 million or 24% and that “Smartphone subscribers now represent 22% of total postpaid subscribers compared to 15% a year ago”. Speaking of subscriber, TELUS reported they added 51,000 subscriber this quarter, up 6.3% from a year ago.

Darren Entwistle, TELUS president and CEO said “We are starting to benefit from Canada’s fastest 3G+ wireless network and enhanced wireline broadband network, leading to greater sales of smartphones and TELUS TV. Importantly, we are experiencing significant traction in our operational efficiency and cost control endeavours.”

Here are other important stats from the report:

– External revenues increased by $47 million or 4.2% to $1.2 billion in the first quarter of 2010, compared with the same period in 2009, driven primarily by equipment and other revenue growth of $30 million, which included revenue from Black’s Photo, as well as a 1.6% increase in network revenue.

– Data revenue of $258 million increased $50 million or 24% due to the continued adoption of smartphones and mobile Internet keys, and increased use of data services such as text messaging and wireless social networking.

– Blended ARPU (average revenue per subscriber unit per month) declined by 4.4% to $55.80 compared to the same quarter a year ago. The downward trend in ARPU moderated from the 7.7% decline experienced in the fourth quarter of 2009. The improved trend is due to a lower rate of decline in voice ARPU and a higher rate of increase in data ARPU. Voice ARPU declined 9.5% this quarter compared to 12% in the fourth quarter. Data ARPU increased by 17% to $13.14, which represented 24% of total ARPU, and is higher than the 13% increase in data ARPU in the fourth quarter of 2009.

– Total net subscriber additions of 51,000 increased by 6.3% over the same period a year ago. Higher value postpaid net additions increased 48% to 65,000, while prepaid subscribers decreased 14,000. As a result, postpaid subscribers represented 127% of aggregate netsubscriber additions. Smartphone subscribers now represent 22% of total postpaid subscribers compared to 15% a year ago.

– Cost of acquisition per gross addition decreased by 4.2% year-over-year to $322, reflecting the impact of loading through lower variable cost channels and a shift in product mix, partly offset by higher cost of subsidizing smartphone devices.

– Cost of retention of $123 million increased by $10 million, reflecting higher retention volumes and equipment subsidy costs associated with increased customer migrations to high cost smartphones, notably including the Apple iPhone.

– Blended monthly subscriber churn improved to 1.55%, reflecting improving economic conditions.

– EBITDA of $497 million increased by 1.8% due to improved wireless revenue growth, partially offset by increased retention costs.

– Simple cash flow (EBITDA less capital expenditures) increased by $146 million or 50% to $438 million in the quarter due to higher EBITDA and $137 million reduction in capital spending due to late 2009 completion of the new HSPA wireless network.

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