Telus reports record fourth quarter for mobile customer growth

Telus is reporting its best fourth quarter on record regarding mobile and fixed customer growth.

The telecom giant said it added 272,000 customers to its base, an increase of 19,000 compared to the fourth quarter of 2020.

There were 193,000 mobile additions. 112,000 of these were mobile phones, and 81,000 were connected devices.

The company recorded its best fourth quarter for wireline additions with 79,000 new customers. 40,000 of these were internet customers.

The company said it added 960,000 new customers across the company.

“Our industry-leading customer growth was driven by our team’s passion for delivering outstanding customer experiences, which once again contributed to strong client loyalty across our key product lines, including blended mobile phone, internet, Optik TV, security and voice churn all below one percent for the year,” Darren Entwistle, Telus’ president and CEO, said in a statement.

Speaking on Telus’ work to connect Canadians with its PureFibre network, Doug French, executive vice-president and CFO, said 1.3 million customers are now connected. Telus’ 5G network is now accessible to 70 percent of Canada’s population.

Revenue

The company reports an operating revenue and other income of $4.87 billion, a 20 percent increase from the same quarter last year.

Telus’ mobile network revenue increased by $76 million, a five percent year-over-year increase. Revenue from mobile equipment also saw a five percent increase ($30 million). The company says this primarily reflects the higher value of smartphones.

The average revenue per subscriber per month (ARPU) for mobile phone users increased by one percent in the fourth quarter to $57.45, largely coming from roaming costs as the international travel market continues to recover.

Per month’s average billing per subscriber (ABPU) saw a 0.6 percent increase to $70.09.

398,000 phones were added to Telus’ network, a year-over-year increase of 24,000. This came from various factors, including pandemic-related restrictions being relaxed and promotions the company put on.

Telus acknowledges global supply chain issues and inventory shortages did impact its fourth-quarter activity, but it mitigated this by its pre-owned device inventory and its Bring-it-Back program. The program offers customers lower costs upfront if they agree to return their phone when the contract ends.

The company reports a five percent decline ($11 million) for fixed voice services in the quarter, coming from people opting for different ways to communicate and price changes.

Fixed data services, including private lines, also saw a revenue increase of $121 million. This comes from various factors, including customers updating their internet speeds and the company’s home and business security services.

Telus also reported growth across its other initiatives. The Telus Health program, for example, covered 20 million people in the fourth quarter, a 22 percent year-over-year increase.

Looking ahead, Telus expects its operating revenues to grow between 8 and 10 percent in 2022.

Source: Telus