TELUS reports positive quarterly growth after strong wireless performance
06 August 2012 | Kavit Majithia
Canadian operator TELUS has reported higher quarterly profit growth on the back of strong results from its wireless business.
The company has now raised its outlook for revenue and cash flow growth, after reporting revenue growth of 7.1%. TELUS added 112,000 wireless subscribers, a 22% increase from the same period a year earlier, and surpassed major competitor Rogers, which added 87,000 subscribers in the same period.
Since announcing the results, TELUS has raised its 2012 revenue forecast by C$50 million to between C$10.75 and C$11.05 billion, citing an ever-increasing wireless margin. Revenue in the wireless segment rose 1.3% and overall net income rose in Q2 to C$328 million.
Canadian regulators continue to operate strong curbs on foreign investment in the telecoms sector, but in March the government said it would allow non-Canadians to take control of carriers that held 10% market share or less.
Since the company’s results were released, CFO Bob McFarlane, has come out and criticised the government’s plans, which still limits TELUS from foreign ownership.
McFarlane told local reporters “it’s an unsustainable situation” to have companies in the same industry subject to different rules. He added liberalisation should occur for all companies in the sector.