Telus reported second quarter 2011 revenue of $2.55 billion, an increase of 6.4 per cent over the same period last year. This increase was generated by 10 per cent growth in wireless revenue and three per cent growth in wireline revenue, both driven by strong data growth.
The company added 94,000 new wireless subscribers in the quarter. Smartphone adoption continued to accelerate causing wireless data revenue to surge by 49 per cent, which more than offset declining voice revenues, resulting in wireless average revenue per unit (ARPU) growth of 2.5 per cent. This is the third consecutive quarter of year-over-year ARPU growth. In the wireline segment, the company added 46,000 TV customers to surpass the 400,000 subscriber milestone. Combined with 13,000 new high-speed Internet subscribers this performance helped generate wireline data revenue growth of 14 per cent.
Consolidated second quarter earnings before interest, taxes, depreciation and amortization (EBITDA) of $950 million increased by almost three per cent due to revenue growth, offset in part by higher costs to acquire and retain wireless customers and to support Optik TV growth.
Aided by reduced financing costs, reported net income and earnings per share (EPS) for the second quarter were $324 million and $0.99, representing year-over-year increases of 7.3 and 5.3 per cent, respectively. Reported net income and EPS included positive income tax-related adjustments of $11 million or three cents per share in the current quarter and $10 million or three cents per share in the same period a year ago.
Free cash flow this quarter increased by 20 per cent to $286 million, primarily due to lower interest payments, lower contributions to defined benefit pension plans, and higher EBITDA, partially offset by higher capital expenditures.
Telus also announced a dividend of 55 cents for the next quarter.