Second quarter 2009 revenue of $2.38 billion, a decrease of $22 million from last year

August 7, 2009

1 Min Read

VANCOUVER, British Columbia -- TELUS Corporation reported second quarter 2009 revenue of $2.38 billion, a decrease of $22 million from last year. The one per cent decrease reflects continued declines in voice revenues that more than offset growth in data revenues. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by five per cent due primarily to a $49 million increase in restructuring costs from ongoing operating efficiency initiatives. Underlying EBITDA increased $34 million, or nearly four per cent, excluding higher restructuring costs and defined benefit pension plan expenses. The increase in underlying EBITDA reflects strong cost containment as operations expense decreased two per cent.

Net income in the second quarter was $244 million and earnings per share (EPS) were $0.77, a decrease of nine and seven per cent respectively. Net income and EPS this quarter included favourable income tax-related adjustments of approximately $19 million or six cents per share, respectively. Excluding the income tax-related adjustments, net income and EPS were down 16 and 14 per cent, respectively.

TELUS increased capital expenditures by $122 million to fund its ongoing wireless and wireline broadband build-out initiatives. As a result, free cash flow was down 43 per cent to $144 million this quarter, which was also lower due to increased restructuring costs and pension contributions.

"The second quarter results continue to reflect the impacts of the recession on our western and nationally based businesses," said Darren Entwistle, TELUS president and CEO. "In light of moderating revenues, our solid progress on operational efficiency initiatives has helped mitigate the effect of current economic conditions and better position the organization for accelerated performance when the economy recovers."

Telus Corp. (NYSE: TU; Toronto: T)

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