TELUS reports strong operational and financial results for second quarter 2019
TELUS Corporation released its unaudited results for the second quarter of 2019. For the quarter, consolidated operating revenue of $3.6 billion increased by 4.2 per cent over the same period a year ago, driven by both wireless and wireline data services revenue growth. Earnings before interest, income taxes, depreciation and amortization (EBITDA) increased by 9.8 per cent to $1.4 billion due to higher wireless network revenue growth and wireless equipment margins, growth in wireline data service margins, higher EBITDA contribution from our customer care and business services (CCBS) and TELUS Health businesses, and the effects of implementing IFRS 16. This growth was partly offset by declines in wireline legacy voice and legacy data services. When excluding restructuring and other costs, Adjusted EBITDA was up 9.0 per cent. Applying a retrospective IFRS 16 simulation to fiscal 2018 results, pro forma Adjusted EBITDA growth was approximately 4.5 per cent, representing a margin of 39.0 per cent, up 20 basis points over last year.
For the quarter, net income of $520 million increased by 31 per cent over the same period a year ago due to EBITDA growth and lower income taxes, including a $121 million benefit from the revaluation of the deferred income tax liability for the multi-year reduction in the Alberta provincial corporate tax rate.
Doug French, Executive Vice-president and Chief Financial Officer said, “Our strong second quarter results for 2019 build on our solid execution in the first quarter and position our year-to-date financial performance in line with our 2019 consolidated financial targets. Free cash flow before income taxes is higher by 8 per cent for the first six months, driven by EBITDA growth and stable capital expenditures as we continue to make the right strategic investments to drive sustainable and profitable subscriber growth across our diverse and expanding product portfolios.”
“During the quarter, we took advantage of strong credit market conditions, successfully executing two financings used to early redeem our $1 billion Series CH notes due in July 2020. Subsequent to the early redemption and recent bond issues, the average term to maturity of our long-term debt stands at 12.8 years, our average weighted interest rate is down to a record low of 3.98 per cent, and we have no maturities in 2020, all of which further strengthens our balance sheet. As we look to the back half of 2019 and beyond, we will strive to continue balancing the interests of all our stakeholders as we execute on our strategy to further position TELUS for long-term success,” concluded Mr. French.
- Consolidated revenue, EBITDA and net income growth of 4.2, 9.8 and 31 per cent, respectively (including impact of IFRS 16 in 2019)
- Robust subscriber growth of 186,000 new customer additions, up 33 per cent and driven by customer service excellence and broadband network leadership
- Strong wireless customer additions of 154,000, up 45 per cent, including 82,000 mobile phone additions, up 19 per cent, and 72,000 mobile connected devices additions
- Consistent and industry-leading wireline customer additions of 32,000, reflecting 25,000 Internet and 16,000 TELUS TV net additions, and low residential voice losses of 9,000
- Industry-leading customer loyalty with mobile phone churn of 1.01 per cent, along with low combined churn across mobile phone, Internet and TV
- More than two million premises PureFibre enabled, representing approximately 64 per cent of our high speed broadband footprint and approaching 70 per cent by year-end
- *Awards from Ookla and Tutela confirm our global network excellence, and build on the numerous major global network awards received consistently over recent years *