Telus Corp. (TSX:T) reported a $296 million profit, a 21% increase year-over-year, in its second quarter largely due to reductions in capital expenditures and restructuring costs.
While the Vancouver-based telco’s revenue increased 1% to $2.4 billion, it reduced its capital expenditures by 29% to $397 million. It also reduced restructuring costs by 64% to $19 million.
A 4% decrease in wireline revenue – to $1.2 billion – was offset by a 6% increase to $1.2 billion in wireless revenue.
The company said it experienced its lowest churn rate or customer turnover in two years.
It also reaffirmed the earnings and capital expenditure forecast it set in mid-December and maintained its original forecast for wireless revenue and earnings. Its forecast for wireline earnings was also reaffirmed, but its original guidance for wireline revenue was reduced slightly.
Telus raised $1 billion in late July by issuing 10-year notes.
The company said Tuesday morning it would double its network’s data speeds next year using what is known as HSPA+ Dual Cell technology. (See “Telus to double wireless network speeds ” – BIV Daily edition; August 3)
Later that day, Bell Canada told BIV that it is testing the same technology on its network and would also be doubling its network speeds in a similar time frame.
Telus’ share price range during the past week: between $40.68 and $42.04; 52-week high: $42.52; 52-week low: $30.76.