Telus Corp. reported a decline in first-quarter profit and revenue compared to the same period last year, the company announced Thursday. The Vancouver-based telecommunications giant attributed the results to heightened competition in the wireless and wireline markets, as well as ongoing economic pressures affecting consumer spending.
Financial Highlights
Telus posted net income of $392 million for the quarter ended March 31, down from $420 million in the same period a year earlier. Revenue slipped to $4.85 billion from $4.92 billion, missing analyst expectations. Adjusted earnings per share came in at $0.27, compared to $0.30 in the prior year.
Operational Challenges
The company noted that its mobile phone subscriber base grew by 68,000 in the quarter, a slower pace than previous quarters, as competitors offered aggressive promotions. Telus also faced higher costs related to network investments and customer retention programs.
“Our results reflect a highly competitive environment and a cautious consumer,” said CEO Darren Entwistle in a statement. “We remain focused on delivering value through our leading network and customer service.”
- Wireless revenue declined 1.2% to $2.1 billion
- Wireline revenue fell 2.5% to $1.8 billion
- Telus Health and Agriculture segments grew 8% combined
The company reaffirmed its full-year guidance, expecting revenue growth of 1-3% and adjusted EBITDA growth of 2-4%.
