Telus Corp. saw its net profit soar 45% in its most recent quarter as the company attracted more mobile and internet customers.
The Vancouver-based telecommunications company revealed on Friday that it hit net income of $498 million in the second quarter, up from $344 million in the same period last year.
Earnings for the period ending June 30 were 34 cents per share, up 36% from 25 cents per share.
“The hallmark of our organization before the pandemic, during the pandemic, after the pandemic or any other exogenous event or any other industry development that has occurred will be consistency and excellence in execution,” said general manager Darren Entwistle during an earnings call. .
Network Reliability Questions
Entwistle declined to comment on the July 8 Rogers Communications Inc. outage that cut services to millions of customers across Canada, but said Telus was focused on keeping its own operations running smoothly.
“The goal of this organization is to leverage the strength of our network’s performance.”
The earnings release and news of shareholder approval comes after the telecommunications sector began to face questions about the reliability and interconnection of their networks following a July service outage from its rival Rogers Communications Inc. which affected millions of Canadians and cut off access to some health services. custodial, law enforcement and banking services.
In July, Telus customers in northern British Columbia experienced a prolonged outage following a beaver gnawing on a tree, which damaged several telephone poles and fiber optic cables.
The telecommunications giants along with their counterpart BCE Inc. have now been tasked with drawing up a contingency plan to mitigate the impact of future outages and other emergencies.
Increase in new customers
On an adjusted basis, Telus reported earnings of $422 million in the quarter, up more than 21% from $348 million in the same period in 2021.
Its revenue reached $4.4 billion in the second quarter, up 7% from $4.1 billion a year ago.
“In the second quarter, the Telus team once again demonstrated excellence in execution, characterized by a steady combination of industry-leading customer growth, resulting in strong operational and financial results across our business,” Entwistle said in a press release.
“Our strong performance reflects the power of our world-leading broadband networks and customer-centric culture, which added a record 247,000 customers in the second quarter.”
These additions included 93,000 net new mobile phone subscribers and 34,000 net new Internet service customers during the quarter.
The company acquires a human resources company
The revenue came in the same quarter Telus announced it would buy LifeWorks Inc., a human resources company formerly known as Morneau Shepell.
LifeWorks helps businesses with employee and family assistance plans, absence management, pension and benefits administration, and retirement planning.
The company was valued at $2.9 billion, including debt, and was set to help Telus push employee health and wellness services further. Telus Health offers virtual care and provides patients with access to digital pharmacy options, home health monitoring and electronic health records.
The deal was approved by shareholders on Thursday, Entwistle said.