Telus, Canada’s leading telecommunications company, has revealed significant capital expenditures (Capex) amounting to approximately $2.6 billion in 2023.
This investment will drive the expansion of our 5G network, which now covers more than 31.6 million Canadians and will represent approximately 86 per cent of the population by December 31, 2023.
Telus aims to keep capital expenditures at approximately $2.6 billion for 2024.
The company’s fourth quarter 2023 report revealed that capital expenditures decreased by 19% to a total of $533 million, of which $47 million was allocated to real estate development. This reduction is primarily due to a deliberate slowdown in fiber and wireless network construction and system development, in line with the company’s 2023 construction goals, compared to the investment increases seen in 2022.
However, real estate development spending increased by $11 million in the fourth quarter of 2023, reaching $47 million. This is primarily to support ongoing multi-year projects such as TELUS Ocean and various commercial construction projects in British Columbia.
Despite these expenses, Telus reported a 2.8% increase in revenue for the fourth quarter of 2023, totaling $5.2 billion. This growth was primarily driven by increased service revenue in his two key segments: TELUS Technology Solutions (TTech) and Digitally Driven Customer Experience. Terrace International (DLCX).
In the TTech segment, service revenue increased due to higher mobile network revenue, higher fixed data service revenue, and higher medical service revenue. Conversely, revenues from television and traditional fixed voice services declined due to technological advances and market trends influencing consumer choice.
In the DLCX segment, revenue increased due to the expansion of services for existing customers and the acquisition of new customers, including those acquired through the acquisition of WillowTree in January 2023.
Telus President and CEO Darren Entwistle attributed the company’s strong performance to its state-of-the-art broadband network and customer-centric approach. He highlighted record customer growth in the fourth quarter, with total net additions reaching 404,000, an increase of 34% year-on-year.
In the fourth quarter of 2023, Telus recorded 404,000 customer additions, a significant increase compared to the same period last year. These additions included 126,000 mobile phones, 203,000 connected devices, 36,000 internet, 23,000 televisions, and 23,000 security customer connections, partially offset by the loss of 7,000 residential voice connections. Ta. Telus’ total TTech subscriber base exceeds his 19.3 million, reflecting his 7.6 percent increase over the past 12 months.
Additionally, Telus reported a decline in average revenue per mobile user (ARPU) to $58.50 in the fourth quarter of 2023 due to lower overage revenue and a competitive pricing strategy. The mobile phone churn rate increased to 1.40% during the same period, mainly due to increased promotional activity.
Additionally, the company noted that the increase in IoT connectivity, particularly in Canada’s transportation, healthcare and home security sectors, led to a significant increase in the number of connected devices, reaching 203,000 in Q4 2023. did.
