Home / Insurance Tips / Telus narrowly misses profit estimates as oil prices wreak havoc in Alberta

Telus narrowly misses profit estimates as oil prices wreak havoc in Alberta

The rout in oil prices has hit Alberta's economy hard, with unemployment in the province surpassing the national average for the first time since 1988. Telus's customers are largely concentrated in Western Canada.

Telus Corp. painted a much clearer picture Thursday about how its businesses in Canada’s oilpatch have weathered the uncertainty and job losses resulting from the continuing rout in oil prices.

In Alberta, the carrier said that it gained only 4,400 new postpaid subscribers on the net basis during the second half of 2015, down from a net 50,000 during the same period last year. It disclosed that average revenue per customer plunged in excess of 4.5 per cent.

In your fourth quarter alone, business users within the province trimmed their regular bills by an average of 7.6 per cent. The speed of monthly disconnections also ticked higher, but it’s still “remarkably lower” compared to national rate, which ranks the very best among the Big Three.

It’s the best thing “Western Canada isn’t one province. It’s two. The B.C. economy has been quite strong for all of us,” leader Darren Entwistle said Thursday around the Vancouver telco’s fourth-period earnings call.

“If we can generate results of this ilk inside the context that people face now economically in Alberta, then I’d say there exists a very bright future ahead … whilst we work our way through the eventual Alberta recovery.”

According to estimates complied by analysts at RBC Capital Markets, Telus commands 48 percent from the province’s wireless market, which makes up about 23 per cent of their wireless revenues and 11 per cent of total sales. Rivals BCE Inc. and Rogers Communications Inc. possess 24 and 25 %, respectively, of sales.

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