1 st quarter 2003 TELUS Mobility results
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Transcript of 1 st quarter 2003 TELUS Mobility results
1st quarter 2003 TELUS Mobility resultsGeorge Cope, CEOTELUS Mobility
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“Focus on profitable subscriber growth rather than industry-leading net additions”
TELUS 2000 Annual Report, page 17
TELUS Mobility’s strategy
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subscribers
wireless industry penetration growth
2002 2003E
Canadian population 31.4M 31.5M
Canadian wireless market 12.0M 13.0 to 13.15M
Penetration 38% 41 to 42%
Net additions 1.0 to 1.15M
Penetration gain 3.0 to 3.5%
Source: Company reports, CWTA and TELUS Mobility estimates
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TELUS Mobility xx%
subscribers
market share of net additions
Source: Company & analyst reports1 Estimate
Q1-03E
net additions of 67K in Q1-03 continue trend of significant share of industry net additions
TELUS Mobility 33%
BellMobility 31%
Microcell1
5%
Rogers 25%
Aliant 4%
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ARPU
Q1-03
$52
Q1-02
$54
Average Revenue Per Unit ($/month)
ARPU up $2 year-over-yearnetwork revenue growth of 19% exceeds 15% subscriber growth
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TELUS Mobility Rogers AT&T BCE Wireless Microcell1
$40
ARPU
continued leadership
Source: Company reports
1 Microcell ARPU for 9ME - Q3-02
Q1-03 ARPU$54
$45$45
20% premium to closest competitor maintained
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pricing change
evenings & weekend clock change to 8 pm
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churn
strong improvement
Q1-03Q2-02 Q3-02 Q4-02
1.7%
2.0%
1.5%1.7%
significant 35pt year-over-year churn improvement
Q1-02
1.9%
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churn
leading performance3.1%
2.6%
2.3%
1.9%2.1% 2.0%
1.5% 1.4%
TELUSSprintPCS
BCE VerizonAT&TCingular Rogers Nextel
churn improvement makes TELUS Mobility’s low churn rate one of best in North America
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profitable subscriber growth
12%14%COA/ Lifetime revenue
1.53%1.88%Churn
Q1-03Q1-02
$54ARPU $52
$425COA (excl. retention) $404
marketing cost as % of lifetime revenue declining
$3,500$2,800Lifetime revenue
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EBITDA growth margin expansion
Wireless EBITDA ($)
$77M
Q1-02 Q1-03Q1-01
$123M
19.9%
29.5%
36.3%
$179MEBITDA margin(network revenue)
industry leading EBITDA growth of 46% yields significant year-over-year margin enhancement
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EBITDA-Capex
$99M cash flow improvement
($381M)
$26MQ1-01
Q1-02 Q1-03
$124M
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conclusion
TELUS Mobility executing to plan
Capturing solid share of industry subscriber growth Strong 19% network revenue growth Financial discipline - pricing initiatives One of the lowest churn rates in North America Industry-leading client lifetime revenue generation Excellent EBITDA growth & margin expansion Mobility significant contributor to consolidated FCF
TELUS Mobility is a premium operator in fundamentally strong Canadian wireless market