Telus announced its first quarter 2016 results today and Canada’s second largest wireless carrier reported an increase in both revenues and subscribers.
Total wireless operating revenues for the quarter came in a $1.716 billion, up 1.8 percent during the same period last year, representing the best first quarter in the company’s history. Telus notes that its good fortune over the past three months is the result of an increase in data revenue and a larger proportion of higher-rate two-year plans.
As for its subscribers, Telus now has 8,387,000 million wireless subs, and 7,315,000 postpaid, an increase of 2.4 percent over Q1 2015. However, the prepaid market continues to tumble as Telus now has 1,072,000 prepaid customers, down 6.3 percent from a year ago.
Monthly postpaid subscriber churn of 0.97 percent rose 6 basis points year-over-year. Blended Average Revenue Per Users (ARPU) jumped by by 1.2 percent to $63.08, which the carrier proudly states is its “twenty-second consecutive quarter of year-over- year growth.”
Earlier this week, Bell announced its plans to acquire MTS for $3.9 billion. While still needing approval from the Competition Bureau, part of the agreement is to divest one-third of postpaid subscribers in Manitoba to Telus.
In its release today, Telus stated it plans to expand its wireless customer base in Manitoba and committed to improve its network in the region, stating, “thanks to the skill and passion of our team members, Telus has earned one of the world’s best levels of customer loyalty. Telus intends to bring the same outstanding customer service it offers across Canada to the benefit of clients in Manitoba.”
In addition, Telus says it has reached a deal to sell 35 percent of Telus International, which is its international call-centre, to Baring Private Equity Asia for $600 million. The total value of Telus International is now estimated to be $1.2 billion. The money raised will be put towards expansion of its broadband networks in Canada.
“This partnership will integrate Telus International’s world class customer service and team engagement with Baring Private Equity Asia’s extensive Asian markets presence and worldwide experience to tap into new growth opportunities for Telus International’s global business process outsourcing, IT and customer service operations,” said Darren Entwistle, president and CEO of Telus.