Telus wireless revenue up 6.4% in Q1, adds 37,000 postpaid subs

Telus announced excellent Q1 2015 earnings today on strong wireless revenue growth.

The company recorded revenue of $3.03 billion in the quarter and an adjusted EPS (earnings per share) of $0.70. Adjusted net income was $427 million.

Adding 37,000 net postpaid wireless customers, Telus now boasts 8.3 million users, though it now includes Public Mobile in that tally, which it previously did not. Telus is preparing to re-launch Public Mobile as a SIM-only discount brand later this year.

Churn remained the lowest of the Big Three at 0.91%, down 8 basis points from a year ago, and down 3 from last quarter. Telus says that postpaid customers now make up 86% of its user base, and that data revenues grew 19% over a year ago. Overall wireless revenue was up 6.4% over last year to $1.54 billion.

Telus notes that while external network revenue is up marginally year over year, the CRTC’s decision to regulate domestic roaming rates beginning in November “will [not] have a material impact on Telus’ operations.”

The company is worried, however, that if a Federal Court of Appeal does not approve Telus’s request to repeal the retroactive application of the Wireless Code of Conduct to all customers beginning on June 3rd, 2015, “we may experience a negative impact on our financial results in the future, as certain of our clients on three-year contracts may be able to avoid paying the remaining device balance if they terminate their contracts early.”

Telus noted that blended monthly ARPU was up nearly $2 over last year to $62.34, thanks to costlier two-year plans, a higher percentage of postpaid customers, and increased data revenue from roaming.