TELUS Reports Fourth Quarter 2010 Results

EPS grows 43 per cent, EBITDA up 7 per cent, free cash flow increasesResults driven by growth in wireless subs, ARPU, high-speed Internet, record TV additions

VANCOUVER, Feb. 11 /PRNewswire-FirstCall/ - TELUS Corporation reported fourth quarter 2010 revenue of $2.55 billion, an increase of more than four per cent. This increase was generated by nine per cent growth in wireless revenue and seven per cent growth in wireline data earnings, which more than offset declines in traditional voice services.

Notably, wireless average revenue per unit increased 1.9 per cent this quarter, the first year-over-year increase in 14 quarters. In this seasonally strong quarter, the company added 119,000 wireless subscribers and a record 48,000 TV subscriptions due to the success of Optik TV. In 2010, total customer connections increased by 378,000, generated by a seven per cent increase in wireless subscribers and 85 per cent growth in TELUS TV clients, partially offset by continued declines in landline connections. 

Consolidated fourth quarter earnings previously interest, taxes, depreciation and amortization increased by over seven per cent due to revenue growth, lower restructuring costs and ongoing benefits from efficiency initiatives. Reported net income and revenues per share for the fourth quarter were $227 million and 70 cents, representing year-over-year increases of 46 and 43 per cent, respectively. When the fourth quarter of 2009 is adjusted to exclude a loss on redemption of debt and both quarters are adjusted for favourable income tax related adjustments, fourth quarter 2010 net income and EPS increased by 41 per cent and 40 per cent, respectively.

"These results demonstrate the success of TELUS' strategy to make significant investments over recent years in advanced wireline and wireless broadband infrastructure," said Darren Entwistle, TELUS President and CEO. "These investments have underpinned our strong competitiveness and increasing growth in wireless and wireline data services."

"Importantly, the positive reaction of our clients to the advanced functionality of smartphones on Canada's fastest coast-to-coast network accelerated wireless data revenue growth and drove higher year-over-year average revenue per unit this quarter for the first time in over three years, and by extension a material uplift in EBITDA. Similarly, I am encouraged by our team's delivery of cutting edge wireline data services that are attracting new clients including strong Optik TV and high-speed Internet net additions," noted Mr. Entwistle.

"Looking forward over each of the then and there three years, I expect the monetisation of the significant investments that TELUS has made in its broadband infrastructure, to support attractive growth in operating revenues, net income, free cash flow and our dividend growth model," stated Mr. Entwistle.

TELUS expands Optik footprint to more than 2 million householdsThe company continued to expand its Optik TV and high-speed Internet broadband footprint in communities across British Columbia, Alberta, and Eastern Quebec. At the end of 2010, TELUS' IP TV footprint covered 2.1 million households. To boot, the company continued to upgrade its broadband network to VDSL2 innovation, enabling data download speeds of up to 30 Mbps, which permits Optik TV subscribers to watch or record up to four channels simultaneously on any TV in the home.

TELUS' Chief Marketing Officer predicts consumer 2011 research trends With increased adoption of smartphones, the Android explosion and the successful launch of Windows Phone 7, smartphones took centre stage as 2010's top innovation. Looking ahead, David Fuller, TELUS' Chief Marketing Officer predicts 2011 will be a year that new options in hardware and services will enable consumers to do more in more places than ever previously - Facebook posting on the television, video gaming on powerful smartphones and finishing last night's TV viewing on a tablet on the train. In 2011, it's about flexibility and choosing the best screen for the job, whether that's a smartphone, tablet, e-reader, gaming device, home computer or TV. David's top five trend predictions for 2011 include:

The ability to create

TELUS health space is giving Canadians the ability to create, store and manage their family's health information in a safe environment utilizing the latest in encryption and protection innovation. This includes moving personal health information quickly and securely across the healthcare continuum whether it's at home, in a clinic, at a hospital or wherever consumers' lifestyles or business travels take them. In a world where wireless network research has enabled powerful mobile computing, health information can before long be right at their fingertips using their smartphones and tablets.

TELUS wins array of top disclosure awards in Canada TELUS received four awards from the Canadian Institute of Chartered Accountants, including the Overall Award of Excellence for Corporate Reporting, recognizing the company's 2009 corporate reporting. The awards were given for all aspects of corporate reporting including the annual report, information circular, corporate social responsibility report and online investor relations and corporate governance information. Just in case to the top award, TELUS was awarded an honourable mention for excellence in sustainable development reporting, an honourable mention for excellence in corporate governance disclosure, and was tops in the communications and media sector.

The third time in four years Audrey Ho

TELUS' chief general counsel named one of Canada's Most Powerful WomenFor the third time in four years Audrey Ho, TELUS' senior vice-president and chief general counsel, was named one of Canada's Most Powerful Women by the Women's Executive Network. Audrey was recognized in the Executive category for her achievements in 2009. She has led the evolution of many TELUS board governance practices that have been externally recognized as exemplary. Recently, this has included the development of our 'say on pay' policy and enhanced disclosure of executive compensation. Ms. Ho as well dedicates time to the community as a board member of various non-profit organizations. She has participated in WXN's Wisdom II mentoring program, and is an advisory council member to the Dean of the Faculty of Law at the University of British Columbia. As so then, she is TELUS' representative on the Canadian Board Diversity Council. The goal of the council is to improve the diversity of corporate and public sector boards in Canada.

TELUS vice-president community affairs lauded for leadership excellenceIn February, the Canadian Women in Communications bestowed their Leadership Excellence Award in the Innovator category to Jill Schnarr, TELUS vice-president of Community Affairs. The annual awards recognize accomplished women in the communications and research sectors and those who support their advancement. Ms. Schnarr leads TELUS' community investment team, where she has spearheaded a transformation to focus on corporate philanthropy based on innovative business initiatives in three key areas - creating healthy communities through grassroots support, engaging employees in the community and supporting causes aligned with TELUS' business strategy. Ms. Schnarr is as well the national chair of Connections - the TELUS women's network. Through Connections, she is helping foster a culture of learning and development, engagement and recognition for women at TELUS and in the community. Canadian Women in Communications is a national, bilingual organization dedicated to the career advancement of women through networking, targeted professional development and recognition.

The second straight year

TELUS takes its place on Top 100 Employers listFor the second straight year, TELUS earned a place on the Top 100 Canadian Employers list, reflecting the company's success in creating an industry-leading workplace for attracting and retaining employees. TELUS is the only telecommunications company to achieve this honour. TELUS was recognized for community involvement, workplace environment, and training and development programs. The company earned the highest scores possible in categories that considered physical workspace, training and community investment. This year, the organizers examined  2,750 applications to select the top 100.

TELUS' Go Pink campaign raises $2 million to support battle against breast cancerIn May 2010, TELUS announced it would donate $25 from every pink Blackberry sold across Canada through the end of the year towards digital mammography machines or other breast cancer detection equipment in regional hospitals. Combined with employee and corporate donations, the campaign raised more than $2 million. The Go Pink campaign will help buy digital mammography machines or other innovative breast cancer innovation for healthcare facilities in communities across Canada, including BC Women's Hospital & Health Centre Foundation, Alberta Cancer Foundation, Saskatchewan Cancer Agency, CancerCare Manitoba, Princess Margaret Hospital Foundation in Toronto, The Ottawa Hospital Foundation, Segal Cancer Center at the Montreal Jewish General Hospital, the Juravinski Cancer Center in Hamilton, and QEII Health Sciences Centre in Halifax.

Dividend Declaration The Board of Directors has declared a quarterly dividend of fifty-two and a half cents Canadian per share on the issued and outstanding Common shares and fifty-two and a half cents Canadian per share on the issued and outstanding Non-Voting shares of the Company payable on April 1, 2011 to holders of record at the close of business on March 11, 2011.

Leading national telecommunications company in Canada

About TELUS TELUS is a leading national telecommunications company in Canada, with $9.8 billion of annual revenue and 12.3 million customer connections including 7 million wireless subscribers, 3.7 million wireline network access lines and 1.2 million Internet subscribers and more than 300,000 TELUS TV clients. Led since 2000 by President and CEO, Darren Entwistle, TELUS provides a wide range of communications products and services including data, Internet protocol, voice, entertainment and video.