TELUS Corporation (NYSE: TU) spotted trading -30.71% off 52-week high price. On the other end, the stock has been noted -1.73% away from the low price over the last 52-weeks. The stock changed -13.34% to recent value of $28.97. The stock transacted 977679 shares during most recent day however it has an average volume of 619.24K shares. The company has 735.09M of outstanding shares and 632.65M shares were floated in the market.
TELUS Corporation recently released its unaudited results for the fourth quarter of 2019. For the quarter, consolidated operating revenue of $3.9B increased by 2.5 per cent over the same period a year ago, driven by growth in wireless network revenue and wireline data services revenue. Earnings before interest, income taxes, depreciation and amortization (EBITDA) increased by 10.8 per cent to $1.4B and when not including restructuring and other costs and non-recurring losses and equity losses related to real estate joint ventures, Adjusted EBITDA was up 7.9 per cent. This growth reflects higher wireless network revenue driven by a growing subscriber base, growth in wireline data service margins, a higher EBITDA contribution from our CCBS and health businesses, and the effects of implementing IFRS 16. This was partly offset by continued declines in wireline legacy voice and legacy data services, a decline in contribution from our legacy business services as well as lower gains on sales of assets. Applying a retrospective IFRS 16 simulation to fiscal 2018 results, pro forma Adjusted EBITDA growth was about 3.0 per cent, or 5.2 per cent not including an atypical decline in wholesale roaming revenue and gains on sales of assets in the same period a year ago.
Fourth Quarter 2019 Operating Highlights
External wireless operating revenue reduced by $11M or 0.5 per cent, as network revenue growth of 1.5 per cent was offset by a 4.0 per cent decrease to equipment and other service revenues, an atypical decline in wholesale roaming revenue, as well as lower gains on sales of assets. Adjusting for the decline in wholesale roaming revenue and lower gains on sales of assets, external operating revenue increased by 0.2 per cent.
Network revenue increased by $22M or 1.5 per cent, reflecting 5.5 per cent growth in the subscriber base over the last 12 months, partly offset by declining mobile phone ARPU as discussed below, as well as an atypical decline in wholesale roaming revenue. Not Including the impact to wholesale roaming revenue, network revenue increased by 2.0 per cent.
Equipment and other service revenues reduced by $26M or 4.0 per cent, reflecting lower wireless contracted volumes, Because of market offers including the industry introduction of device financing programs, which provide transparency into full device costs resulting in consumers deferring device upgrade purchases, as well as lower prices on certain handsets.
Mobile phone ABPU was $72.79, declined marginally by 0.1 per cent. The slight decrease reflects declines in chargeable usage, the impact of the competitive environment putting pressure on base rate plan prices in the current and previous periods, and the before mentioned impact to wholesale roaming revenue. This decrease was partly offset by growth from our combined TELUS Easy Payment device financing, Peace of Mind endless data plans and TELUS Family Discounts offerings, which we introduced in the third quarter of 2019, with consumers selecting plans with endless data or larger data buckets and higher-value smartphones in the sales mix. Not Including the impact to wholesale roaming revenue, mobile phone ABPU increased by 0.3 per cent.
Mobile phone ARPU was $59.29, reflecting a decrease of 1.7 per cent, as the declines in chargeable usage, competitive pressures on base rate plan prices, and impact to wholesale roaming revenue was only partly offset by the aforementioned increased number of consumers selecting plans with endless or larger data buckets. Not Including the impact to wholesale roaming revenue, mobile phone ARPU declined by 1.2 per cent.
Mobile phone churn rate was 1.20 per cent as contrast to 1.11 per cent in the same period a year prior, reflecting heightened competitive intensity during the seasonal promotional period. The increase in the mobile phone churn rate was partially mitigated by the utilization of our innovative TELUS Easy Payment device financing program, Peace of Mind endless data plans, Bring-It-Back and TELUS Family Discount offerings, our focus on executing consumers first initiatives and retention programs, and our leading network quality.
Total subscriber net additions of 130,000, contrast to 142,000 in the previous year. Mobile phone net additions reduced by 7,000, as higher mobile phone gross additions were offset by higher mobile phone churn, as described above. The decrease was also driven by a continued focus on profitable growth and away from lower economic loading in the mobile phone market. Mobile connected device net additions reduced by 5,000, driven by a decline of 36,000 less low or negative-margin tablet loading, partly offset by growth in our Internet of Things offerings.
EBITDA of $896M increased by $66M or 8.0 per cent, while Adjusted EBITDA of $911M increased by $59M or 6.9 per cent over last year, reflecting higher network revenue growth driven by a larger subscriber base, savings from cost efficiency programs and the implementation of IFRS 16.
Applying a retrospective IFRS 16 simulation to fiscal 2018 results, pro forma wireless Adjusted EBITDA growth was about 3.1 per cent, or 4.9 per cent adjusting for roaming and asset sales.
External operating revenues increased by $105M or 6.6 per cent driven by higher data services revenue growth, partly offset by lower gains on sales of assets. Adjusting for the lower gains on sales of assets, external operating revenues increased by 7.6 per cent.
Data services revenues increased by $130M or 10.8 per cent, driven by: i) growth in CCBS revenues, primarily Because of growth in business volumes resulting from expanded services for existing consumers as well as consumer growth; ii) increased internet and third wave data service revenues, reflecting higher revenue per consumer, as well as a raise in our internet subscriber base; iii) increased health revenues, driven by both business acquisitions and expanded services for existing consumers; iv) revenues from our home and business smart technology (including security) lines of business; and v) increased TV revenues. This growth was partly offset by the ongoing decline in legacy data service revenues.
Internet net additions of 28,000 were unchanged over the previous year, as continued net new demand from consumers and businesses was offset by increased deactivations from heightened competitive intensity.
TV net additions were 15,000, a decrease of 9,000, mainly Because of heightened competitive intensity and the changing landscape of increased streaming services.
Security net additions of 15,000, reflecting a raise of 11,000, was driven by strong organic growth from improved bundling opportunities. Security net additions exclude those of ADT Canada.
Residential voice net losses of 12,000 improved by 1,000 contrast to the same period a year ago. The residential voice subscriber losses continue to reflect the trend of substitution to wireless and internet-based services, partially mitigated by our expanding fibre footprint and bundled product offerings, and the success of stronger retention efforts, including lower-priced offerings.
EBITDA of $472M increased by $67M or 16.5 per cent, while Adjusted EBITDA of $502M increased by $44M or 9.6 per cent, driven by increased contribution from higher internet margins, expansion in our CCBS business from additional services for existing consumers and consumer growth, higher contribution from our home and business smart technology (including security), and the implementation of IFRS 16. This growth was partly offset by higher employee benefits expense and other costs related to business acquisitions, the continued declines in legacy voice and legacy data services, as well as lower gains on sales of assets.
Applying a retrospective IFRS 16 simulation to fiscal 2018 results, pro forma wireline Adjusted EBITDA growth was about 2.6 per cent, or 5.9 per cent adjusting for asset sales.
Its earnings per share (EPS) expected to touch remained 8.20% for this year while earning per share for the next 5-years is expected to reach at 6.80%. TU has a gross margin of 58.80% and an operating margin of 20.40% while its profit margin remained 12.00% for the last 12 months. According to the most recent quarter its current ratio was 0.8 that represents company’s ability to meet its current financial obligations. The price moved ahead of -22.18% from the mean of 20 days, -25.22% from mean of 50 days SMA and performed -22.26% from mean of 200 days price. Company’s performance for the week was -16.46%, -29.55% for month and YTD performance remained -25.20%.