Telus reports $3.73 billion Q2 revenue, 61,000 mobile phone additions

Vancouver-based national telecom Telus released its Q2 2020 earnings on July 31st with 61,000 mobile phone net additions. The company’s revenue came in at $3.73 billion, a 3.6 percent increase year-over year.

Telus says the 61,000 additions were “high-quality,” comprised entirely of “higher-value postpaid customers.” However, the number marks a 21,000 decrease.

The company reported 94,000 total net wireless additions compared to 154,000 in the prior year. Telus saw 47,000 wireline customer additions as well. That was driven by 37,000 internet and 12,000 security net additions, which Telus says are both up year-over-year.

“TELUS’ broadband network has continued to perform exceedingly well throughout the health crisis, inclusive of the resulting significant changes in usage patterns and added demands on our network,” wrote CEO Darren Entwistle in the report.

In total, Telus saw over 141,000 net additions across mobile, wireline and other products.

Further, the carrier saw a low blended mobile churn rate of 0.80 percent, with a “historically low” postpaid churn of 0.59 percent. This time last year, Telus’ churn was at 1.01 percent. The carrier attributes this to the impacts of COVID-19, which reduced switching activity.

Telus’ total wireless subscriber base is up 4.9 percent over the last 12 months. The increase reflects a 2.4 percent increase in its mobile phone subscriber base to 8.8 million. There was also a 21 percent increase to Telus’ mobile connected devices base. Connected devices include things other than phones with their own SIM or IMEI number, which can include tablets, internet keys, Internet of Things, wearables and connected automobile systems.

The carrier’s mobile phone average billing per unit (ABPU) was $69.65, a decrease of 5.1 percent. Telus says the decline reflects the impacts of COVID-19. For example, reduced customer travel combined with Telus’ waiving of roaming charges, the closure of 90 percent of its retail stores and a decrease in “chargeable data usage” thanks to more people working remotely and using Wi-Fi all contributed to the decreased ABPU.

Likewise, the mobile phone average revenue per unit (ARPU) fell to $56.82 in Q2, a 5.8 percent decrease. Telus attributes the fall to the impacts of COVID-19 as well as a trend in declining chargeable usage. The carrier also said the impact of the competitive environment put pressure on base rate plan prices.

Telus’ net income in the quarter was $315 million, a decrease of 39 percent year-over-year. The carrier cites COVID-19 as one of the leading reasons for the decline.