VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 7, 2014) - For the second quarter of 2014, TELUS Corporation (TSX:T)(NYSE:TU) reported consolidated operating revenue growth of 4.4 per cent from a year earlier to $2.95 billion, while earnings before interest, income taxes, depreciation and amortization (EBITDA) increased by 7.5 per cent to $1.07 billion. Net income increased by 33 per cent to $381 million, while basic earnings per share (EPS) rose by 41 per cent to $0.62.
Consolidated revenue growth was generated by both wireless and wireline operations, with wireless revenue up 6.2 per cent and wireline revenue up 2.4 per cent from a year ago. In wireless, revenue was primarily driven by continued subscriber growth and higher data usage as a result of continued smartphone adoption and the expansion of our LTE network coverage. Wireline strength was driven by data revenue growth of 8.7 per cent, generated primarily by an increase in TELUS TV and high-speed Internet subscribers as well as increasing revenue per customer.
TELUS attracted a total of 80,000 net new customer connections in the quarter, driven by the gain of 78,000 wireless postpaid customers, 23,000 TELUS TV subscribers and 15,000 high-speed Internet customers, partially mitigated by the moderating loss of residential access lines and wireless prepaid customers. The total wireless subscriber base is up 2.2 per cent from a year ago to 7.9 million, high-speed Internet connections are up 5.6 per cent to 1.4 million, and TELUS TV subscribers are up 16 per cent to 865,000.
TELUS' ongoing focus on delivering an exceptional customer experience supported a strong 13 basis point year-over-year improvement in monthly postpaid wireless subscriber churn to 0.90 per cent - matching a record low set by TELUS eight years ago and reflects the fourth consecutive quarter this important metric was below one per cent.
Darren Entwistle, TELUS Executive Chair said, "Our strong second quarter results were characterized by growth in revenue, EBITDA and free cash flow, supported by 80,000 net new subscriber additions and continued leading customer loyalty with a record monthly postpaid wireless churn rate of 0.90 per cent. On the back of these robust results, we continued to demonstrate our commitment to returning capital to shareholders through our dividend increases and stock repurchases, which this year have totalled $1.1 billion to the end of July. On an absolute basis, or on a relative basis with our global peers, TELUS continues to drive industry-leading results."
Free cash flow of $210 million was higher by 9.4 per cent from a year ago as higher EBITDA and lower defined benefit pension contributions were partially offset by higher capital expenditures (excluding spectrum licences) and income tax payments. Free cash flow when excluding higher income tax payments was $332 million, an increase of 21 per cent year-over-year.