TELUS Handling Their Business – Raise 2012 Revenue Forecast

By: Kuljit Grewal  |   August 4th, 2012   |   Business, News, O Canada, Smartphones

Vancouver based telco TELUS Corp. have made a habit of keeping their customers happy and it seems to be bearing fruit. The company, which provides wireless, internet and television services Canada-wide have achieved their highest customer retention rate ever, indicating their users’ overall service satisfaction.

 

A measure, known as churn rate, which measures the proportion of customers who leave the company on a monthly basis feel to 1.39 per cent for Q2. Internal surveys have also indicated that TELUS’ customers are now more likely than ever to recommend the company’s services to friends and family. This ultimately results in fewer dollars being spent on customer retention, allowing those savings to be passed back to the end users.

 

The majority of TELUS’ success is being driven by the wireless arm of the company, particularly within the lucrative Smartphone and data revenue streams. The company has seen a 27 per cent increase in data revenues for the quarter, increasing their total to $512 million for the quarter.

 

The company also managed to increase its average revenue per user (ARPU), a key industry metric for the seventh straight quarter, by 2.4 per cent to $60.29. They were able to achieve this while industry giant Rogers Communications Inc. saw their ARPU fall by 1.9 per cent.

 

Overall, TELUS’ revenues for Q2 increased by 4 per cent to $2.7 billion with profits increasing by 1.2 per cent to a solid $328 million. EPS increased by 2 per cent as well to $1.01 per share. The company was able to add an incredible 112,000 customers while also benefiting from its expanding television business. TELUS now provides TV services for 595,000, making it a major player on Canada’s west coast.

 

Thanks to the solid quarter, as well as the strong ones that have preceded it, the 2012 revenue forecast has been increased by $50 million to between $10.75 billion and $11.05 billion for the fiscal year.