1 / 20

Q1 2013 TELUS investor conference call May 9 , 2013

Q1 2013 TELUS investor conference call May 9 , 2013. Darren Entwistle President & Chief Executive Officer Joe Natale EVP & Chief Commercial Officer John Gossling EVP & Chief Financial Officer. TELUS forward looking statement.

akiko
Download Presentation

Q1 2013 TELUS investor conference call May 9 , 2013

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Q1 2013 TELUS investor conference call May 9, 2013 Darren Entwistle President & Chief Executive Officer Joe Natale EVP & Chief Commercial Officer John Gossling EVP & Chief Financial Officer

  2. TELUS forward looking statement Today's presentation and answers to questions contain statements about future events and financial and operating performance of TELUS that are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and predictions and are subject to inherent risks and uncertainties. There is significant risk that the forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future performance and events to differ materially from that expressed in the forward-looking statements. Accordingly, our comments are subject to the disclaimer and qualified by the assumptions (including assumptions for 2013 annual guidance,CEO three-year goals to 2013 for EPS and free cash flow growth to 2013 excluding spectrum costs, semi-annual dividend increases to 2016, ability to sustain and complete multi-year share purchase programs to 2016), qualifications and risk factors referred to in the first quarter Management’s discussion and analysis and in the 2012 annual report, and in other TELUS public disclosure documents and filings with securities commissions in Canada (on SEDAR at sedar.com) and in the United States (on EDGAR at sec.gov). In addition, there can be no assurance that the Company will initiate a normal course issuer bid. Except as required by law, TELUS disclaims any intention or obligation to update or revise forward-looking statements, and reserves the right to change, at any time at its sole discretion, its current practice of updating annual targets and guidance.

  3. Agenda • CEO Introduction • Q1 operational highlights • Q1 financial results • Questions and Answers

  4. CEO introduction Series of shareholder friendly initiatives • Increasing dividend July 2 – up 11.5% from a year ago • Extending dividend growth program of circa 10% annually to 2016 • Launching $500M issuer bid to December 2013, subject to TSX approval • Targeting share repurchase program of $500M in 2014, 2015, 2016 • Reporting strong Q1 results Returning to shareholders up to $6B or $10 per share 2013 - 2016

  5. Robust postpaid net additions Wireless subscribers Postpaid net adds (000s) 1.1M prepaid 63 59 14% 52 7.7M total 86% 6.6M postpaid Q1-12 Q1-13 Q1-11 Postpaid base up 6.6% YoY Now 2nd largest player in national mobility market

  6. Strong smartphone adoption and ARPU growth $60.04 $58.87 $57.89 6.6 6.2 5.8 25.62 22.83 17.71 68% 56% 40.18 36.04 34.42 38% Q1-11 Q1-12 Q1-13 Q1-11 Q1-12 Q1-13 Postpaid subscribers (millions) Voice ARPU Smartphone % of postpaid Data ARPU Smartphone penetration up 12 points to 68% of postpaid base supporting ARPU growth of 2% in Q1

  7. Industry leading wireless churn Blended Postpaid 1.70% 1.55% 1.48% 1.33% 1.14% 1.11% Q1-12 Q1-13 Q1-11 Q1-12 Q1-13 Q1-11 Best Q1 blended churn since 2007 Cost of Retention stable

  8. Industry leading lifetime revenue per susbcriber1 $4,057 $3,798 $3,405 Q1-11 Q1-12 Q1-13 Industry leading ARPU and churn generating leading lifetime revenue per subscriber 1 Lifetime revenue derived by dividing ARPU by blended churn rate

  9. Healthy TV and Internet growth TELUS TV (000s) High-speed Internet (000s) 6.8% 1,342 1,257 29% 712 1,183 553 358 Q1-11 Q1-12 Q1-13 Q1-11 Q1-12 Q1-13 TELUS focused on balancing subscriber growth with profitability

  10. Continued strength in Optik 60K 50K 16K 16K 44K 34K -34K -47K Q1-12 Q1-13 High-speed Internet TELUS TV Residential NALs TV and high-speed Internet loadingexceeds residential NAL losses for tenth consecutive quarter

  11. Q1 2013 wireless financial results TELUS delivers another strong quarter of wireless results • 1 For definition, see Section11.1 in Q1 2013 Management’s discussion and analysis

  12. Wireless data revenue ($M) 583 498 366 Q1-12 Q1-11 Q1-13 Strong Q1 data revenue growth of 17% year-over-year Data now 43% of wireless network revenue, up 4 points

  13. Q1 2013 wireline financial results Another quarter of EBITDA growth reflecting revenue growth and improved Optik TV and high-speed Internet margins

  14. Wireline data revenue ($M) 764 700 619 Q1-12 Q1-11 Q1-13 Strong data revenue growth of 9% driven by TV and Internet Data revenue 60% of external revenue, up 4 points

  15. Q1 2013 consolidated financial results Strong consolidated results driven by both wireless and wireline • 1 For definition, see Section11.2 in Q1 2013 Management’s discussion and analysis

  16. EPS continuity analysis 0.56 0.02 0.06 0.49 (0.01) Q1-12 reported Q1-13 reported Change in tax expense Higher EBITDA Depreciation &Amortization EPS up 14.3% driven by strong EBITDA growth

  17. Successful $1.7 billion financing • $1.1 billion 11 year at 3.35% • $600 million 30 year at 4.40% • Funds $300 million 5.0% Notes maturing June 2013 • Redeeming one year early May 2014 $700 million 4.95% Notes • Early redemption fee to negatively impact Q2 EPS by approx 3 cents

  18. TELUS long-term debt maturity profile ($M) New debt issue 1,100 Debt to be repaid 1,000 1,000 700 700 625 600 600 500 300 245 200 175 20131 20141 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2043 Reducing financing risk Average term to maturity 9 years from 5.2 • 1 $300 million June 2013 notes to be repaid at maturity; $700 million May 2014 notes to be redeemed one year early on May 15, 2013

  19. investor relations 1-800-667-4871 telus.com/investors ir@telus.com

  20. Appendix – Q1 2013 free cash flow comparison 2012 Q1 2013 Q1 C$ millions EBITDA 981 1,034 Capex (441) (467) Net Employee Defined Benefit Plans Expense 27 26 Employer Contributions to Employee Defined Benefit Plans (116) (36) Interest expense paid, net (55) (57) Income taxes refunded (paid), net (48) (148) Share-based compensation 7 12 Restructuring costs net of cash payments 2 (6) Free Cash Flow 358 358 Dividends (188) (209) (30) (26) Cash payments for acquisitions and related investments (16) (4) Real estate joint venture Working Capital and Other (138) (62) Funds Available for debt redemption 61 (19) (39) (67) Net Issuance (Repayment) of debt 22 (85) Increase (decrease) in cash

More Related