Telus has announced its financial results for the second quarter of 2024, highlighting growth in mobile phone additions and net income.
The company reported a total mobile and fixed customer growth of 332,000, a record for Q2 and an increase of 39,000 from the previous year.
“In the second quarter, our team built upon our track record of execution excellence to drive industry-leading customer growth and strong financial results, leveraging our premier portfolio of assets, coupled with a relentless pursuit to drive cost efficiency and effectiveness,” said Darren Entwistle, President and CEO, in a statement on Friday.
Mobile phone net additions reached 101,000, while connected device net additions hit a record 161,000. The postpaid mobile phone churn rate—the rate of customers leaving the company—was 0.89%, leading the industry, pointed out Telus.
But the overall mobile phone churn rate increased to 1.07%, up from 0.94% compared to the year ago quarter. Telus said this was “largely as a result of customer switching decisions in response to more aggressive marketing and promotional pricing,” which likely is attributed to Freedom Mobile’s lower priced plans.
Net income increased by 13% to $221 million on revenues of $4.9 billion, with earnings per share up 7.1%, compared to the year ago quarter.
Telus says mobile network revenue increased 0.9%, while mobile equipment and other service revenues decreased 3.1%. Mobile average revenue per user (ARPU) was at $58.49, a decrease of 3.4% (or $2.07). Telus blamed the drop on lower-priced base rate plans introduced in response to aggressive marketing and promotions for new and existing customers. There was also a drop in overage and roaming revenues, but offset by higher Internet of Things (IoT) revenue.
The company said it is seeing more customers choosing unlimited data and Canada-U.S. plans, which provide higher and more stable monthly revenue. These plans also give customers the ease of paying the same monthly price, with lower roaming fees in the U.S. and reduced data overage charges.
As of the end of June, the Telus 5G network covered roughly 32 million Canadians, or about 86% of the population.
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