TELUS picks up subscribers in Q3 after Rogers network outage

TELUS picks up subscribers in Q3 after Rogers network outage

TELUS had an excellent third quarter with year over year growth in all segments. The earnings call focused on the lack of churn this quarter and the reliability of the TELUS network, with no direct reference to the rogers nationwide blackout that paralyzed the country in early July. But mobile gross additions during the third quarter of 2022 were the highest for TELUS since before the pandemic. Although TELUS was very successful in its mobile segment, its other segments such as IoT, TV and fixed telephony also saw significant growth this quarter.

TELUS Q3 2022 Gross Aggregations

Information source: TELUS

TELUS continues to keep casualties low; Extend 5G coverage by 23%

  • Emphasizing customer loyalty and lower churn, TELUS noted that this was the eighth quarter of the last 11 where postpaid churn was below 0.80%. The quarter registered a turnover of 0.73% for the postpaid segment and 0.95% when combined with the prepaid segment.
  • Mobile telephony ARPU increased 2.3% YoY. This was attributed to the adoption of 5G+ plans that customers are upgrading to. The early launch of the iPhone 14 series would also help boost ARPU as carriers are a dominant sales channel for these devices.
  • Service revenues increased 4.2% year over year. Mobile network revenues also increased 6.8%. Roaming revenue continued to rise to approach pre-pandemic levels as people continued to travel and absorb roaming fees. Upgrading to 5G+ plans also contributed to the increase in mobile network revenue.
  • 5G expansion has progressed rapidly for TELUS, with total 5G population coverage increasing by 22.8% to 29.6 million vs. LTE’s 37 million.

TELUS Mobile Subs Q3 2022

Informationn Source: TELUS

Growth in the connected device category slowed

  • Connected devices have been a huge growth segment for TELUS in the past year, with sales of smart watches, tablets and other internet of things carrier-enhancing devices. Connected device sales saw a 15.1% increase from the third quarter of 2021.
  • Wireline saw 36,000 internet net adds, not as strong as last year’s 46,000 net adds. Total internet subscribers saw a year-over-year increase of 6.3% in the third quarter of 2022.
  • TV net adds saw strong growth at 18,000, up 8,000 from last year to result in a 4.9% year-over-year increase.

TELUS continues to strengthen its position in Health and Safety

  • Healthcare has been a growing focus for TELUS outside of the wireless industry as COVID-19 demonstrated the need for better connectivity within the healthcare system. TELUS has been able to add 1.7 million virtual healthcare members to its Lifeworks network last year. It can hold up to 60.4 million people.
  • Security devices and memberships also saw an increase this year for TELUS, with total service subscribers now reaching 950,000, a year-on-year increase of 22.9%. Ecosystem OEMs like Google have developed smart doorbells and home cameras with smartphone connectivity, which has significantly boosted this segment.
  • New global metrics show a 19.3% revenue increase for TELUS’ technology and gaming segments. With the growing popularity of mobile and cloud gaming, these metrics will invite operators to pay more attention.

Overall, TELUS has been very successful this year, not only boosting its wireless market but also rapidly expanding its other businesses in sectors such as health and security. Apple iPhone 14 series contributed significantly to Q3 device sales success, according to Counterpoints North American Channel Engagement Tracker. TELUS is on track to meet the 2022 guidance it had set late last year. TELUS has already reached the goal of 10% growth in adjusted EBITDA and 9.9% growth in operating income YoY. Consolidated targets can be achieved in Q4 as strong flagship device sales continue to drive the market and roaming rates continue to rise as travel becomes easier around the world with restrictions gradually lifted of COVID-19.

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