Telus added 406,000 telecom customers to its business in the third quarter of the year, the company’s latest financial earnings show.
Compared to Q3 2022, this figure saw an increase of 59,000, or 17 percent, and was driven by the company’s bundled service offerings.
Breaking the figure down, 160,000 of the new customers were mobile phone net additions. This figure increased by 10,000 year-over-year.
The churn rate for this category, which defines how many people left Telus, is 1 percent. This slightly increased from the 0.95 percent the company reported in Q3, 2022. Promotions from competitors and “heightened activity in the flanker space” played a role, Darren Entwistle, Telus’ CEO, said in a conference call discussing the results.
A further 67,000 net customers subscribed to fixed services, including 37,000 internet customer additions, an increase of 1,000 customers year-over-year. The company largely credits this figure through its bundled offerings. However, the figure is offset by the loss of 8,000 residential voice customers.
Revenue breakdown
The company reported $5 billion in operating revenue, a 7 percent increase from the same time last year. Telus partially credits this growth to mobile and fixed subscriber count and revenue from roaming.
Revenue through customer contracts for Telus’ technology services increased by $311 million (nearly 8 percent) year-over-year. Revenue from its mobile network saw an increase of $57 million (3 percent) and revenue from mobile equipment increased $12 million (2 percent) year-over-year. Telus credits this figure to the sale of higher-value smartphones.
“This was partly offset by a reduction in contracted volumes attributed to increased promotional activity centred around rate plans and market aggression, in addition to more customers taking advantage of bring-your-own-device plan offerings,” Telus’ press release states.
Telus also saw a decrease in the average revenue per user (ARPU), reporting $59.19, a decrease of $0.29 (0.5 percent) compared to Q3 2022. Lower plan prices through promotions, “market aggression,” and decreased overage revenues from customers opting for unlimited plans played a role.
Revenue for fixed services saw an increase of $54 million (nearly 5 percent) year-over-year. Growth in internet service subscribers and higher revenue from internet speed upgrades and rate changes contributed.
Telus also reported a 17 percent decrease in its capital expenditures, which goes towards extending, upgrading or fixing assets. Of the decrease, $161 million came from its “planned slowdown” to expand its fibre and wireless build.
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