Canadian telecoms network operator, Telus Corp has reported fourth quarter 2009 financial results consistent with the company's most recent public guidance. Revenue of CA$2.4 billion was a slight decrease of CA$11 million over the same period a year ago reflecting continued declines in traditional voice services, which offset growth in data and wireless revenues. Consolidated EBITDA decreased by 16 per cent from the fourth quarter of 2008, primarily due to higher restructuring costs from ongoing operating efficiency initiatives and higher defined benefit pension plan expenses. When excluding restructuring costs and these pension plan expenses, underlying EBITDA decreased by eight per cent.
Net income in the fourth quarter was $156 million - down by approximately 45 percent - due to the unfavourable after-tax impact of approximately CA$69 million related to the costs of early partial redemption of June 2011 notes from the successful $1 billion refinancing in December. Net income included favourable income tax-related adjustments of approximately CA$79 million this quarter, compared to CA$32 million in the same period a year ago.
Excluding the debt redemption and income tax-related adjustments, the underlying net income for the quarter was CA$146 million compared to CA$253 million for the same period a year ago.
In the fourth quarter, TELUS added 105,000 net new customer connections as growth in wireless, TELUS TV and high speed Internet subscribers partially offset by decreases in traditional landline phone and legacy data connections. Total customer connections for the year increased by 284,000 to 12 million.
Cost of acquisition per gross addition increased by only 2.2% year-over-year to $380, reflecting higher advertising and promotional expenses related to the new 3G+ wireless network launch in November, and higher cost of subsidizing smartphone devices (notably including the Apple iPhone), partially offset by lower commissions.
Wireless ARPU declined by 7.7% to $57.38 compared to the same quarter a year ago, as voice ARPU continued its downward trend due to declining minutes of use and plan optimization by consumers and businesses, lower business-oriented Mike service revenue, increased proportion of Koodo Mobile customers, and decreased inbound roaming revenues. The fast growing data component increased by 13% to $12.60 and represented 22% of ARPU.
Darren Entwistle, TELUS president and CEO, noted that the results are consistent with TELUS' latest guidance.
"There is no question that the last year was a challenging one economically, but also one where we progressed game-changing capital projects and made significant investments in operational efficiency to improve our cost structure. Combined, these initiatives will launch TELUS into its next stage of net income and cash flow growth," Mr. Entwistle said.
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