150 likes | 335 Views
Q2 2006 TELUS investor conference call Darren Entwistle • member of the TELUS team. August 4, 2006. Improving Canadian wireless industry* Q2 economics. Wireless industry revenue up 17%, subscribers up 11% ARPU up 5% and churn down to 1.6% Lifetime revenue up 8%
E N D
Q2 2006 TELUS investor conference call Darren Entwistle • member of the TELUS team August 4, 2006
Improving Canadian wireless industry* Q2 economics • Wireless industry revenue up 17%, subscribers up 11% • ARPU up 5% and churn down to 1.6% • Lifetime revenue up 8% • Average COA trend reverses down from Q1 • EBITDA up 22%, margins @ 43.5%, cash flow up 24% * TELUS, BCE and Rogers Wireless industry remains vibrant and investing in growth 4
Push to implement the Telecom Policy Report • Supporting TPR panel and Industry Canada’s thought leadership Other CRTC developments • 2005 VoIP decision referred by Cabinet back to CRTC • Local forbearance decision – appealed • Mobile TV broadcasting not regulated • Third local price cap proceeding underway for 2007 Opportunity for positive regulatory and policy change 5
2006 – second quarter review Total subscriber connections (millions) 10.4 9.9 9.4 Res NALs Bus NALs Dial-up Internet High-speed Internet Wireless Q2-05 Q2-06 Q2-04 Connections increasing with strong wireless and Internet growth 6
Q2 review - consolidated • 2006 consolidated guidance updates • Revenue up $25M to $8.625 to $8.725B • EPS range increased 50 cents to range of $2.90 to $3.10 • Capital expenditures up 3% to approx. $1.6B 7
Q2 review - wireline • Moderate NAL decline and strong high speed Internet growth • Competition affecting LD revenue and non-ILEC • TELUS resilient relative to North American industry • Operating themes • Stabilize traditional services • Continue Future Friendly Home applications • Continue productivity and efficiency programs 8
Q2 review – wireline efficiency • Efficiency programs ongoing since 2001 • Facilitated by new collective agreement • Three broad categories • Outsourcing • Consolidations • Process improvements • $30M restructuring charges in Q2 / $81M last 3 quarters Efficiency programs to continue with fourth phase 9
Q2 review - wireless • Strong revenue growth of 18% • ARPU up for 14th consecutive quarter (yr over yr) due to data • EBITDA up 20% and margin up to 46.4% • EVDO network rolled out to 19 communities across Canada High speed EVDO deployment catalyst for further data growth 10
Exclusive arrangement and investment • Amp’d Mobile responsible for marketing, freshest and exclusive entertainment content, and optimized handsets • TELUS responsible for managing sales and distribution, billing, client care, network options and pricing • Targeting 18 to 35 age demographic and lifestyle • Exclusive licensing and service agreement – not a traditional MVNO • Amp’d Mobile is a premium brand with high ARPUs focused on mobile media not traditional voice and postpaid focus • TELUS Ventures investing US $7.5M in Amp’d Mobile, Inc. 12
Q2 2006 TELUS investor conference call Darren Entwistle • member of the TELUS team 17