Telus announced its second quarter 2015 results today, with the company reporting an income of $341 million, a 10 per cent decrease from the $381 million number it reported at the same time last year. The company says the cost of restructuring following the closure of Black’s, and an increase in corporate tax rates in Alberta for the decrease in income.
That said, Telus’ wireless division is doing better than ever; second quarter wireless network revenue grew by $90 million or 6.1 per cent to $1.57 billion.
Like Bell, Telus benefited significantly from the CRTC’s decision to put an end to two-year contracts. In addition, the company cites subscriber growth, increased data usage, continued adoption of smartphones and increased data roaming as the main reasons for its revenue growth.
Specifically, compared to the same time last year, the company’s subscriber base has grown by 3.3 per cent or 264,000 to 8.35 million. In the second quarter alone, Telus added 76,000 wireless postpaid customers. Moreover, post-paid subscribers now make up 86.5 per cent of its total subscriber base.
In terms of the increased data usage it cited as one of the reasons for its overall revenue growth, the company saw wireless data revenue increase by 18 per cent compared to the same period last year.
At 0.86 per cent, Telus continues to lead Canada’s three main carriers with the lowest subscriber churn rate. The company notes that its current rate is an improvement of four basis points over the same time last year. It’s also improvement over the already minuscule 0.91 per cent rate it posted last quarter. Moreover, this is the eighth consecutive quarter that Telus has managed to reduce its churn rate has.
Blended average revenue per user (ARPU) for the quarter grew by 2.9 per cent to $63.48. According to Telus, this is nineteenth consecutive quarter in which that number has grown. Moreover, like its subscriber churn rate, Telus boasts the best blended ARPU among the big three.
“The Telus team’s relentless focus on putting customers first has translated into industry-leading loyalty and retention that continues to underpin our solid financial performance,” said Joe Natale, president and CEO of Telus, “Through years of a company-wide commitment to genuinely earn customer loyalty, we continue to gain the trust of our customers as exemplified by this quarter’s North American-leading customer loyalty measure of a 0.86 per cent monthly postpaid wireless churn rate.”