Q2 2006 TELUS investor conference call Darren Entwistle • member of the TELUS team
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Transcript of Q2 2006 TELUS investor conference call Darren Entwistle • member of the TELUS team
Q2 2006 TELUS investor conference call
Darren Entwistle • member of the TELUS team
August 4, 2006
Improving Canadian wireless industry* Q2 economics
Wireless industry remains vibrant and investing in growth
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Wireless industry revenue up 17%, subscribers up 11%
ARPU up 5% and churn down to 1.6%
Lifetime revenue up 8%
Average COA trend reverses down from Q1
EBITDA up 22%, margins @ 43.5%, cash flow up 24%
* TELUS, BCE and Rogers
Push to implement the Telecom Policy Report
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Supporting TPR panel and Industry Canada’s thought leadership
2005 VoIP decision referred by Cabinet back to CRTC
Local forbearance decision – appealed
Mobile TV broadcasting not regulated
Third local price cap proceeding underway for 2007
Other CRTC developments
Opportunity for positive regulatory and policy change
Total subscriber connections
Connections increasing with strong wireless and Internet growth
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Wireless
High-speed Internet
Dial-up Internet
Res NALs
Bus NALs
(millions)
Q2-06
10.4
Q2-05
9.99.4
Q2-04
2006 – second quarter review
Q2 review - consolidated
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2006 consolidated guidance updates
Revenue up $25M to $8.625 to $8.725B
EPS range increased 50 cents to range of $2.90 to $3.10
Capital expenditures up 3% to approx. $1.6B
Q2 review - wireline
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Moderate NAL decline and strong high speed Internet growth
Competition affecting LD revenue and non-ILEC
TELUS resilient relative to North American industry
Operating themes
Stabilize traditional services
Continue Future Friendly Home applications
Continue productivity and efficiency programs
Q2 review – wireline efficiency
Efficiency programs to continue with fourth phase
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Efficiency programs ongoing since 2001
Facilitated by new collective agreement
Three broad categories
Outsourcing
Consolidations
Process improvements
$30M restructuring charges in Q2 / $81M last 3 quarters
Q2 review - wireless
High speed EVDO deployment catalyst for further data growth
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Strong revenue growth of 18%
ARPU up for 14th consecutive quarter (yr over yr) due to data
EBITDA up 20% and margin up to 46.4%
EVDO network rolled out to 19 communities across Canada
Amp’d Mobile – CanadaPowered by TELUS
Exclusive arrangement and investment
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Amp’d Mobile responsible for marketing, freshest and exclusive entertainment content, and optimized handsets
TELUS responsible for managing sales and distribution, billing, client care, network options and pricing
Targeting 18 to 35 age demographic and lifestyle
Exclusive licensing and service agreement – not a traditional MVNO
Amp’d Mobile is a premium brand with high ARPUs focused on mobile media not traditional voice and postpaid focus
TELUS Ventures investing US $7.5M in Amp’d Mobile, Inc.
Peter AddertonFounder & Chief Executive Officer
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Amp’d Investors
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Amp’d Is Mobile Media
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Q2 2006 TELUS investor conference call
Darren Entwistle • member of the TELUS team
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