events archive
events archive
Q3 2004 investor conference call - George Cope presentation
Thank you, Darren. Good morning, everyone. I am pleased to report that TELUS Mobility once again had an excellent quarter.
Turning to slide 12, one can see that TELUS Mobility net ads increased 35% year-over-year to 136,000 in the quarter, versus 101,000 last year. More importantly though, post paid increased 51% from 76,000 last year to 115,000 in Q3 '04. The resulting mix was a healthy 85% post paid, 15% prepaid split, and better than our overall mix of 83%, 17%.
And as a result of the strong net ads, we have increased guidance for year-end, which Bob McFarlane will take you through in a few moments.
Turning to slide 13, I am pleased to report that all key performance metrics improved nicely. Blended ARPU increased for the seventh consecutive quarter as minutes-of-use, data revenue, and roaming revenue continued to grow.
Post paid ARPU in fact increased to $70 and was up $3 year-over-year. And of note, if we exclude Mike from our post paid ARPU, it was an industry-leading $69.
Turn was reduced to 1.3% from 1.4%. Importantly, post paid was reduced to 1.05% from 1.14%, while retention spending of $28 million, or 4.1% of network revenue, was under our target of 5% for this year.
Cost of acquisition was reduced $32, as a result, our cost of acquisition over lifetime revenue remained under 10%, and actually hit an historical low of 8% for the quarter, despite the increased net ads.
Turning to slide 14, which provides a summary of our strong financial performance, EBITDA grew 32%, as 71% of incremental network revenue flowed through to the EBITDA line. Our record high margin of 47.2%, with 36% growth in net ads is a tremendous achievement as we continue to manage our cost-for-subscriber down on a year-over-year basis.
Capex was 13.8% of revenue, down from 15% one year ago, and will be under 13% this year, as planned.
Finally, our free cash flow growth of 46% in the quarter, and 57% year-to-date provides for tremendous value and enhancement opportunities for TELUS stakeholders.
Now over to Bob McFarlane, our CFO, to give you a more in depth look at TELUS' quarter results. Bob, over to you.
Q3 2004 investor conference call - presentations
John Wheeler, vice-president, investor relations
Darren Entwistle, president and chief executive officer, TELUS Corporation
George Cope, president and chief executive officer, TELUS Mobility
Robert McFarlane, executive vice-president and chief financial officer
Question period
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