Canadian telecom network operator TELUS Corporation says its investment towards Capex (capital expenditure) reached C$618 million (–2.7 percent) in the first quarter of 2016.
Capital expenditures of TELUS in wireline surged due to investments in broadband network, including connecting more homes and businesses directly to TELUS’ fiber optic network and investments in system and network resiliency and reliability.
TELUS said its total capital expenditures at $618 million, excluding spectrum licences, decreased by $17 million in Q1 2016, mainly due to lower spending on the deployment of spectrum, partly offset by investing in broadband infrastructure, including connecting more homes and businesses directly to fiber-optic network.
TELUS has invested $180 million (–27.4 percent) in wireless networks and $438 million (+13.2 percent) wireline networks across Canada in Q1 2016.
Operating revenue of TELUS grew 2.6 percent to $3.1 billion in the first quarter of 2016, driven by continued data revenue growth in both wireless and wireline operations.
Wireline data revenue rose 10 percent leading to 3.7 percent growth in external wireline revenue.
Wireless data revenue of TELUS grew 8.3 percent, leading to overall wireless network revenue growth of 2.5 percent.
TELUS added 31,000 wireless postpaid, high-speed Internet and TV customers in Q1. This included 12,000 high-speed Internet subscribers, 11,000 TELUS TV customers and 8,000 wireless postpaid customers. TELUS’ wireless subscriber base increased 1.2 percent to 8.4 million, high-speed Internet connections increased 6.7 percent to 1.6 million, and TELUS TV subscribers rose 8.4 percent to just over 1 million.
Meanwhile, Baring Private Equity Asia will acquire 35 percent stake in TELUS International in a deal valued TELUS International at $1.2 billion.
Darren Entwistle, president and CEO of TELUS, said: “The proceeds of approximately $600 million will further enhance TELUS’ strong balance sheet and contribute to our strategy of advancing our broadband wireline and wireless networks to support Canada’s digital economy.”
This transaction will allow TELUS to make investments throughout Canada, including the expansion of its fibre-optic network to more communities, its advanced wireless network and the support of healthcare.
