TELUS announces some Q1 results: economy an issue.

telusq12009TELUS has a conference call set up to discuss its Q1 results on May 7th, but they have released some expectations before hand. “First quarter 2009 wireless segment financial results are expected to be adversely impacted by lower than expected wireless net additions and average revenue per unit (ARPU).”

“Wireless subscriber net additions of 48,000 represented a 46% decline year over year. The growth rate of 0.3% in wireless subscriber gross additions for the first quarter of 2009 compares to 4.8% and 17% growth, respectively, generated for the fourth quarter and year ended December 31, 2008. The worsening trend is believed to be primarily due to the weakening Canadian economy including: lower consumer confidence and a resulting decrease in retail sales including customer deferral of buying decisions; lower and more cautious business spending; and lower employment levels”

In addition, “Wireless ARPU (Average revenue per user) is being impacted by: lower service revenue from our Mike line of business; increased proportion and use of lower per minute rate plans including greater use of in-bucket minutes; and decreased roaming revenues. This can be attributed to the continued highly competitive market and the ongoing global economic recession increasingly being experienced in Canada”

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