Telus’ internet, TV businesses steal spotlight from wireless

Telus Corp.’s wired businesses outshone its wireless results in the second quarter, with executives crediting investments in fibre connections for higher demand for internet and television services and better customer retention. The Vancouver-based company reported Friday wired business revenue of $1.57 billion for the three months ended June 30, up 7.1 per cent from the same period last year thanks to the addition of 29,000 internet customers and 15,000 TV customers. The influx beat analysts’ expectations of 15,000 and 4,000 new customers, respectively. Revenue in its wireless business rose at a slower rate of 3.6 per cent to $1.94 billion. Telus added 87,000 new customers, but average billings per user edged up just 0.6 per cent to $67.24. While the subscriber volume met Bay Street’s predictions, Telus fell short of its top competitors with Rogers Communications Inc. and BCE Inc. each adding 122,000 wireless subscribers in the period. Still, overall revenue increased 5.3 per cent in line with analysts’ predictions. Profit was flat at $390 million or 66 cents per share. The outperformance for wired services caught analysts’ attention since mobile operations across the industry have stolen the spotlight in recent years as revenue continuously climbed due to increased data usage and higher smartphone adoption.

On a conference call with analysts, Telus chief executive Darren Entwistle said the momentum in high-speed internet and TV sales shows the success of building fibre-to-the-premises connections.