Telus earns $447-million in Q3, boosts dividend
Telus Corp. earned $447-million on revenue of $3,774-million in the third quarter of 2018. It has also increased its dividend to 54.5 cents per share.
TELUS CORP. has released its unaudited results for the third quarter of 2018. For the quarter, consolidated operating revenue of $3.8-billion increased by 11 per cent over the same period a year ago. This growth was driven by higher wireless network and equipment revenues, wireline services revenue growth, and higher other operating income resulting from the company’s share of the non-recurring equity income related to real estate joint ventures of $171-million arising from the sale of Telus Garden. Excluding this equity income, consolidated operating revenue increased by 5.8 per cent. Earnings before interest, income taxes, depreciation and amortization (EBITDA) increased by 8.2 per cent to $1.3-billion due to higher revenue growth as referenced above and improved wireless equipment margins. Adjusted EBITDA was up 6.4 per cent when excluding the net gain from the sale of Telus Garden, as well as restructuring and other costs, which included the company’s committed donation of $118-million to the Telus Friendly Future Foundation.
“Telus reported strong operational and financial results for the third quarter, including robust customer growth across both the wireless and wireline segments of our business. This was buttressed by a continued excellent performance in wireless and wireline customer loyalty and lifetime revenue,” said Darren Entwistle, president and chief executive officer. “Importantly, the Telus team continues to achieve industry-leading postpaid wireless churn, and realized record third quarter high-speed Internet and TV retention levels. This performance was driven by our team’s relentless focus on providing exceptional customer experiences, and was
anchored by the ongoing generational investments we are making in our leading broadband wireline and wireless networks, both of which are hallmarks of Telus’s successful, long-term growth strategy.”
Doug French, executive vice-president and chief financial officer, said: “As we head into the seasonally important final quarter of 2018, we remain focused on executing against our strategy, amplifying our efforts on cost-efficiency, focusing on margin accretive customer growth and investing to support our growth strategy. Today we are raising our full-year 2018 assumption for restructuring and other costs, including an additional $50-million targeted towards further streamlining our business and enhancing our effectiveness in serving our growing customer base. This additional investment in restructuring, to be recorded in the fourth quarter of 2018, is expected to deliver annual cost savings of more than $50-million beginning next year. Meanwhile, our net debt to EBITDA leverage ratio continues to improve, putting us in good position for 2019.”
In the quarter, the company attracted 199,000 new wireless, high-speed Internet and Telus TV customers, up 47,000 or 31 per cent over the same quarter a year ago. The higher net additions included 145,000 wireless net additions, including 109,000 postpaid net ad ditions, as we ll as 36,000 high-speed Internet subscribers and 18,000 Telus TV customers.
For the quarter, net income of $447-million increased by 10 per cent over the same period a year ago as EBITDA growth was partly offset b y higher de preciation and amortization due to growth in the company’s asset base resulting in part from business acquisitions as well as increased financing costs. Basic earnings per share (EPS) of 74 cents rose by 8.8 per cent over the same period last year. Adjusted net income of $445-million increased by 6.7 per cent over the same period a year ago, while adjusted EPS of 74 cents rose by 5.7 per cent.
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Telus sets preliminary 2019 capital expenditure target Capital expenditures for 2019, excluding the purchase of spectrum licences, is estimated to be similar to the company’s 2018 target of approximately $2.85-billion. In 2019, the company will continue connecting more homes and businesses directly to its fibre optic network, further expanding the company’s PureFibre footprint, while continuing to advance its small-cell technology strategy to improve coverage and prepare for a more efficient and timely evolution to 5G. Additionally, the company plans to continue investing in its support systems. Dividend declaration — quarterly dividend increased to 54.5 cents per share The Telus board of directors has declared a quarterly dividend of 54.5 cents per share on the issued and outstanding common shares of the company payable on Jan. 2, 2019, to holders of record at the close of business on Dec. 11, 2018. This fourth quarter dividend represents an increase of four cents or 7.9 per cent from the 50.5-cent quarterly dividend paid on Jan. 2, 2018, and is the 16th dividend increase since Telus announced its original mult iyear div idend growth program in May, 2011.
Denise Pickett joins board of directors Effective Nov. 1, 2018, Denise Pickett joined the company’s board. Ms. Pickett was named chief risk officer and president, global risk, banking and compliance, American Express in February, 2018.
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Erika Flores condensed this news release (firstname.lastname@example.org).
Richard H Auchinleck, Raymond Tatsun Chan, Stockwell Burt Jr Day, Lisa de Wilde, Darren Entwistle, Mary Jo Haddad, Kathy Kinloch, William A MacKinnon, John Paul Manley, Sarabjit S Marwah, Claude Mongeau, David L Mowat, Marc Parent
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