Telus 2010 Annual Report Download - page 31

Download and view the complete annual report

Please find page 31 of the 2010 Telus annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 182

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182

CFO letter to investors
GROWTH
a passion for
Dear investor,
Through 2010, TELUS generated improving financial and operational
performance that has propelled us forward and positions us well for
the coming year. It is gratifying to see our investors being rewarded
for believing in our Company’s ability to deliver on our proven strategy
and benefit from our consistent financial policies.
Financial performance – past and future
TELUS’ financial performance in 2010 and targets for 2011
reflect the many positive trends in both wireless and wireline,
which are being made possible by our major strategic
investments in recent years in broadband networks and
operating efficiency.
Growth resumed in 2010, with revenue increasing from
2009 by two per cent to $9.8 billion and EBITDA up over four
per cent to $3.6 billion. These results are made possible by
past investments and are being driven by increases in business
volumes, including more wireless subscribers, record Optik TV
additions and improved growth in high-speed Internet service.
Particularly important was the trend in wireless average revenue
per unit (ARPU), which, due to the growing popularity of high-
revenue smartphones, improved from a 6.8 per cent decline
in 2009 to a modest 1.4 per cent decline in 2010. Ongoing
efficiency savings, combined with lower restructuring costs,
also contributed to the improvement in EBITDA.
Underlying earnings per share (EPS) growth was 15 per
cent, after adjusting for non-operational items. This primarily
reflected increased EBITDA, as well as reductions in financing
costs that resulted from the lower costs of borrowing on