Telus forecasts growth in 2011
Telus Corp. expects its revenues to increase between one and four per cent in 2011, mainly on the back of increased demand for wireless voice and data.
The Vancouver-based telecommunications firm says it expects sales of between $9.93 billion and $10.23 billion next year. Within that, the wireless division is expected to make up most of the growth, expanding by between 3.5 and 6.5 per cent or $5.2 and $5.35 billion.
"Next year's results are expected to benefit from the continuation of healthy wireless subscriber loading and accelerating adoption of wireless data services, as well as significantly reduced financing costs due to $2 billion in successful debt financings in the last 12 months at significantly lower interest rates," CFO Robert McFarlane said.
Earnings per share are forecast to increase by between nine and 22 per cent.
McFarlane told analysts on a conference call that increasing competition in the wireless industry and more demand for data from smartphones and tablet computers will buoy overall revenues in the division.
The telecom company also said it will continue to focus on cost reduction in 2011, with a planned investment of about $50 million in restructuring costs and $75 million in cost savings.
With the recent purchases of former Canwest assets by Shaw and a reacquisition of CTV's vast television assets by rival BCE Inc., Telus is now the only major Canadian telecom company that doesn't also own a large stable of media assets.
The company has said it is not interested in getting into the media convergence game, where media providers woo new customers by offering exclusive media content.
Telus currently has 6.9 million wireless subscribers, 3.8 million wireline network access lines, 1.2 million Internet subscribers and 266,000 television customers.