Telus Corp (TU), Canada’s second largest telecom carrier, has released financial targets for 2010 while lowering its forecasts for the current year. The revised target for 2009 reflects the impact of a sluggish Canadian economy on the company’s wireline business, launch of the new wireless network, cost associated with the launch of new smartphones (including [...]

(TU) Telus Sets 2010 Target – Cuts 2009 Forecast

Market Blog submits:
Complete Story »

Telus Corp (TU), Canada’s second largest telecom carrier, has released financial targets for 2010 while lowering its forecasts for the current year. The revised target for 2009 reflects the impact of a sluggish Canadian economy on the company’s wireline business, launch of the new wireless network, cost associated with the launch of new smartphones (including the iPhone) and increase in restructuring cost in the fourth quarter.[More...]

Telus Corp (TU), Canada’s second largest telecom carrier, has released financial targets for 2010 while lowering its forecasts for the current year. The revised target for 2009 reflects the impact of a sluggish Canadian economy on the company’s wireline business, launch of the new wireless network, cost associated with the launch of new smartphones (including the iPhone) and increase in restructuring cost in the fourth quarter.

The company now expects overall revenue for 2009 to reach C$9.6 billion (US$9.06 billion), at the lower-end of its previously forecasted range of C$9.6–C$9.7 billion (US$9.06–US$9.15 billion). Revised EBITDA target of C$3.475 billion (US$3.28 billion) for 2009 also represents the lower-end of the earlier guidance of C$3.475–C$3.575 billion (US$3.28–US$3.37 billion). However, EPS guidance remains unchanged at C$3.10–C$3.30 (US$2.92–US$3.11).

Capital expenditure (CapEx) target for 2009 has been kept unchanged at $2.1 billion (US$1.98 billion). Total restructuring expenses have been increased to C$190 million (US$179 million) from the previous forecast of C$160 million (US$151 million), reflecting the acceleration of certain cost reduction initiatives previously planned for early 2010.

For 2010, Telus expects consolidated revenue in the range of C$9.8 to C$10.1 billion (US$9.24 to US$9.53 billion), representing 2-5% year-over-year increase. EBITDA is forecasted to grow 1-6% year-over-year to between C$3.5 billion and C$3.7 billion (US$3.3 billion and US$3.5 billion). The company expects rise in depreciation and amortization expenses and financing costs to constrict EPS for 2010 which is projected at C$2.90 to C$3.30 (US$2.73 to US$3.11).

Telus expects its wireless and wireline broadband businesses to deliver healthy results in 2010 boosted by the significant investment made on them during the current year. Revenue from wireless is projected to grow 5-9% year-over-year to C$4.95-C$5.1 billion (US$4.66-US$4.81 billion) on the back of the new 3G HSPA+ network and increased data and roaming revenue. On the wireline side, growth in broadband will continue to be more than offset by sustained declines across local and long-distance voice businesses.

CapEx for 2010 are forecasted to decline year-over-year to $1.7 billion, reflecting completion of the deployment of the 3G HSPA+ wireless network in 2009. Major portion of 2010 CapEx will be devoted to the ADSL 2+ broadband network deployments and advancement to VDSL 2 network. Given the lower CapEx level, Telus expects free cash flow to increase by 40% in 2010. Restructuring expenses for 2010 are projected at C$75 million (US$71 million).

Telus is banking heavily on the new 3G wireless network launched recently in collaboration with its Canadian peer BCE Inc (BCE). The network offers peak downlink speeds of up to 21 megabits per second (Mbps). Moreover, leveraging the HSPA+ network, Telus also launched Apple’s (AAPL) iPhones (3G and 3GS), ending Rogers Communication’s (RCI) exclusivity on the iconic handset.
Read the full analyst report on "TU"
Read the full analyst report on "BCE"
Read the full analyst report on "RCI"
Read the full analyst report on "AAPL"
Zacks Investment Research

Streetwise Blog submits:
Complete Story »

Market Blog submits:
Complete Story »

Streetwise Blog submits:
Complete Story »

Frederic Ruffy submits:

Sentiment

Stocks opened steady on mixed economic news and are holding modest gains late Thursday. Stock index futures moved higher along with benchmarks in Europe before the opening bell on Wall Street after the Bank of England kept rates at record lows of .5 percent and EuroGroup vowed that Greece would avoid bankruptcy.

In the US, the early focus was on import/export and weekly jobless claims numbers. The Commerce Department reported that strong export sales helped to narrow the trade deficit. Meanwhile, the Labor Department said that weekly jobless claims rose by 17,000 to 474,000 in the period ended December 5. Economists were looking for a decline of about 2,000. However, continuing claims fell to 5157K, down from 5460K and much better than the 5450K average economist forecast.

Complete Story »

Market Blog submits:
Complete Story »

Jabra Brings Ground-Breaking Bluetooth Headset Exclusively to Bell Stores

Telus Corp (TU), Canada’s second largest telecom carrier, has reportedly expanded coverage of its Internet Protocol TV (IPTV) services in western Canada. The company’s IPTV service is now available to the residents in Lethbridge and Medicine Hat in Alberta and Campbell River in British Columbia. Telus offers its IPTV service (as Telus TV) which provides video [...]

(TU) Telus Corporation Expands IPTV Reach

Telus Corp (TU), Canada’s second largest telecom carrier, has reportedly expanded coverage of its Internet Protocol TV (IPTV) services in western Canada. The company’s IPTV service is now available to the residents in Lethbridge and Medicine Hat in Alberta and Campbell River in British Columbia.

Telus offers its IPTV service (as Telus TV) which provides video and broadcast services to customers in selected markets in Canada. Telus TV, which is being positioned as an alternative to cable TV, offers more than 390 channels (including 35 High Definition TV channels), Video-On-demand service and a personal video recorder (PVR).

The company’s IPTV subscriber base exceeded the 100,000 milestone in April 2009, supported by increased adoption by high-speed Internet customers, aggressive promotional initiatives and attractive feature additions.

Telus expanded its IPTV service offering with the launch of Telus Satellite TV in British Columbia and Alberta (two major markets in western Canada) in June 2009 through a joint venture initiative with Bell Canada, the wireless subsidiary of BCE Inc (BCE).

The new satellite TV service has enabled Telus to offer a “Quadruple-Play" bundled service (fixed-line, wireless, Internet and video) to more than 90% of the households across British Columbia and Alberta. Moreover, the inclusion of satellite TV has also broadened the coverage of Telus’ IPTV services in urban areas as well as low-penetration rural markets.

Telus is also expanding its High Definition TV (HDTV) coverage through its broadband network enhancement program. This represents a part of the company’s more than $700 million investment to improve broadband infrastructure and advanced wireless services in Alberta.

Telus contends with a sluggish Canadian economy and stiff domestic competition, which would intensify with the entry of new wireless players in late 2009 and early 2010. The company continues to lose local phone access lines (both business and residential) to competitors such as wireless service providers and cable TV operators offering Internet phone (VoIP) services.

Telus has strategized to offset erosion in its core wireline business with IPTV and broadband data content services. The company registered healthy net additions of 22,000 video customers in the last quarter bringing the total IPTV subscriber base to 137,000 customers, representing an 83% year-over-year growth.
Read the full analyst report on "TU"
Read the full analyst report on "BCE"
Zacks Investment Research

Market Blog submits:
Complete Story »