TELUS reports Q4 2009 results: 122,000 subscribers (18% decrease)

TELUS has released their Q4 2009 results they have had a number of highlights such as launching their HSPA network and making the iPhone available. However with all the good CEO Darren Entwistle (who is not taking a salary this year) stated “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”.

So what do the numbers look like? From the report, here’s a summary:
External revenues increased by $37 million or 3.1% to $1.2 billion in the fourth quarter of 2009, compared with the same period in 2008, with equipment sales and other revenue growth of $56 million, which included a full quarter of revenue from newly acquired Black’s Photo, offsetting a decline in network revenue.

Wireless data revenue of $243 million increased $40 million or 20% 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.

ARPU (average revenue per subscriber unit per month) 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.

Net subscriber additions of 122,000 were 18% lower than for the same period a year ago. The year-over-year decrease was primarily due to lower prepaid net additions and the company’s focus on launching a number of major wireless strategic initiatives that began ramping up in November. Higher value postpaid net additions were 109,000 and represented 89% of total new wireless customers, up from 80% in the year-ago period.

– Blended monthly subscriber churn was essentially flat year-over-year at 1.60%.

– 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.

– Cost of retention of $133 million increased by $28 million, reflecting higher costs associated with increased retention volumes to support customer migrations to smartphones, including the Apple iPhone.

More at TELUS

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