Stockwatch – TELUS Reports Strong Results For Second Quarter Of 2014

Stockwatch – TELUS says wireless revenue up 6.2%

Stockwatch – Vancouver-based telecommunications company TELUS Corporation (TSE:T, Mkt cap 24.22B, P/E 17.57, Div/yield 0.38/3.86, EPS 2.24, Shares 615.48M) has revealed its second-quarter financial results, reporting strong performance across the board.

Stockwatch - TELUS

Stockwatch – TELUS says wireless revenue up 6.2%

The company reported consolidated revenue growth of 4.4% over the 12 month period since the second quarter of 2013, reaching C$2.95 billion in total. The growth was realised from both wireless and wireline operations, as outlined in a statement. Wireless revenue went up 6.2%, while wireline operations generated revenue 2.4% higher than a year ago. The company attributes this to a growing customer base using TELUS TV and high-speed Internet services, as well as a rise in revenue per customer.

In the wireless segment, growth was mostly driven by increased subscription rates and data usage growth, thanks to smartphone penetration on the market and expanding LTE coverage, it said in the statement.

Meanwhile, earnings before interest, income taxes, depreciation and amortization (EBITDA) rose 7.5% to C$1.07 billion. Net income also increased by 33% to C$381 million.

TELUS reported a cash flow of C$210 million, which was 9.4% higher compared to the same period last year. The main drivers of the increase were higher capital expenditures and income tax payments that partially made up for higher EBITDA and lower defined benefit pension contributions.

The second quarter of the year brought C$412 million returns to shareholders. Of those, C$24 million were paid in dividends and a further C$188 million were in share purchases under the company’s 2014 normal course issuer bid program. According to Darren Entwistle, executive chair of TELUS, total capital returns to shareholders for the year up to the end of July exceeded C$1.1 billion.

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