Telus added 404,000 net telecom customer additions in Q4, 2023, a 34 percent increase year-over-year, according to its recently released financial report.
“This enabled our strongest fourth quarter customer growth on record,” Darren Entwistle, Telus’ CEO, said in a press release.
The figure includes 126,000 mobile phone net additions, the strongest figures in a fourth quarter since 2011. These additions help Telus’ total mobile phone subscriber base surpass 10 million, a statistic that could further increase with bundling efforts.
Compared to its competitors, Telus had the lowest mobile phone churn rate, which refers subscribers to deactivating services. Telus’ monthly churn rate for Q4 was 1.4 percent, blended with both prepaid and postpaid subscribers. Bell has a blended monthly churn of 2 percent. Rogers had a 1.6 percent churn rate for postpaid customers and 6 percent for prepaid customers.
“We have been ahead of the industry and ahead of our peers, but we’re not satisfied,” Zainul Mawji, the president of Telus consumer solutions, said Friday on a call with analysts. “What it’s taught us from a performance perspective is that we’re gonna have to continue to advance our product, intensity, and bundling plays for all segments of the market and have more attractive bundles for all segments of the market.
The company made $1.7 billion in revenue from its mobile network, an increase of $64 million (or 4 percent) compared to Q4 2022. Telus credits this growth to its growing subscriber base and revenue from roaming.
On average, Telus made $58.50 per mobile phone user, a 0.3 percent decline year-over-year. Promotional activity during the quarter played a role. This factor also impacted the monthly churn rate, referring to customers leaving Telus, increasing it to 1.4 percent in Q4 2023, compared to 1.2 percent in Q4 2022.
On the internet side, Telus added 36,000 internet net additions, a 14 percent decrease year-over-year. While Telus notes a higher churn rate led to the decrease, it’s unclear where this figure stands. The company points out that pressure from competitors that impacted purchasing decisions for customers played a role.
The Vancouver-based provider reported $310 million in net income, a 17 percent increase year-over-year.
Source: Telus
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