TELUS Q2 results: 111,000 new subscribers (down 37%)

teluslogoTELUS has reported their Q2 2009 and right off the bat they state “The Company has updated its 2009 full year guidance to reflect ongoing impacts of increased operating efficiency initiatives on restructuring costs, the ongoing Canadian recession, weaker than expected wireless ARPU at TELUS and in the Canadian industry and our most recent outlook. The 2009 Wireless revenue range is down between $50 and $100 million”.

All we can say is thank you for bringing on new animals as they have always spurred better devices and better wireless results. Over the past month TELUS has brought on the HTC Touch Pro2, HTC Snap, BlackBerry Tour, LG Keybo 2 and Motorola Rival… these are bound to help bring up revenue and secure a solid client base. However, from reading the report it seems like Koodo and Mike are having its toll on overall results.

More on the TELUS Q2 numbers… here’s a brief summary:

– Net subscriber additions were 111,000, a decrease of 37% from the same period a year ago but more than double the 48,000 added in the first quarter. Contributing to the decrease was current churn of Koodo subscribers at normal levels, whereas a year ago there was minimal Koodo churn given its then recent service launch. Postpaid net additions of 95,000 represented 86% of the total net additions. Cost of acquisition per gross addition decreased 9.1% year-over-year to $311.

– Wireless data revenue increased $58 million or 37% due to the continued adoption of full function smartphones and mobile Internet keys, and increased use of data services such as messaging and social networking.

– ARPU (average revenue per subscriber unit per month) declined by 6.6% to $58.61 compared to the same quarter a year ago, but up slightly from the first quarter. The fast-growing data component of $11.56 represented 20% of ARPU, while the decline in the voice revenue worsened due to declining minutes of use and plan optimization by consumers and businesses, lower business-oriented Mike service revenue, decreased inbound roaming revenues, and increased sales of the Koodo service.

– Blended monthly subscriber churn increased to 1.55% from 1.43% a year ago due to deactivations of customers impacted by the weaker economic environment, low prior year churn from the Koodo service due to its initial launch in March 2008, and continued competitive marketing intensity.

TELUS has also stated they are on track for the new HSPA network which is “expected to be launched in B.C., Alberta, Quebec and nationally by early 2010”. Over the past couple weeks we’ve seen progress of this with screenshots of the network in action.

More here at TELUS