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Delaying suspensions, cancellations and write-offs for our customers who were in collections, and accepting payment arrangements. Waiving wireless roaming fees up to April 30, , and home internet overage charges for customers without unlimited data plans up to June 30, Providing families currently participating in our Internet for Good program with a credit for free service and recently expanding the program to people living with disabilities who receive financial disability assistance from the provincial governments in British Columbia, Alberta and Quebec.
Expanding our Mobility for Good program to hospital workers, providing a credit for wireless service to frontline healthcare workers at hospitals across the country that have been significantly impacted by the COVID pandemic.
Donating over 14, devices and tablets to enable isolated seniors, hospitalized patients and vulnerable Canadians stay connected.
Launching our StandWithOwners initiative to support Canadian small businesses. Avoiding layoffs by redeploying front line team members, including those directly impacted by store closures, into other areas of the business requiring additional support.
Reallocating our capital expenditures in to provide Canadians with the network speed, reliability and coverage and to stay connected as well as accelerating our PureFibre capital investments in Calgary.
Empowering team members to continue to be productive while working from home by providing alternate arrangements to balance COVID pandemic-related impacts, such as school closures Ensuring the health and well-being of our team members by implementing strict hygiene and physical distancing standards for the remaining employees who continue to work at TELUS premises or in a customer-facing role, both domestically and internationally.
All information pertaining to shares outstanding and per-share amounts in this news release for periods before March 17, , reflects retrospective treatment of the two-for-one share split 4 Capital expenditures include assets purchased, excluding right-of-use lease assets, but not yet paid for, and consequently differ from Cash payments for capital assets, excluding spectrum licences, as reported in the interim consolidated financial statements.
Refer to Note 31 of the interim consolidated financial statements for further information. Effective for the third quarter of , with retrospective application to the launch of TELUS-branded security services at the beginning of the third quarter of , we have added security subscriber connections to our total subscriber connections.
December 31, security subscriber connections have been increased to include approximately , subscribers related to our acquisition ADT Security Services Canada, Inc.
ADT Canada acquired on November 5, Device financing programs, which provide transparency of full device costs resulting in customers deferring device upgrade purchases also contributed to the decrease.
This decrease reflects the impacts caused by the COVID pandemic including: i changing customer behaviour related to travel restrictions, as well as our decision to temporarily waive roaming charges for customers in response to the pandemic; ii the closure of 90 per cent of our conventional retail stores for an undetermined period of time, which hindered customer opportunities for device upgrades and the upgrade or selection of higher-tier plans; iii decreases in chargeable data usage as more people work from home and offload their mobile devices onto Wi-Fi networks; and iv our decision to temporarily waive late payment charges, partly offset by: v increased chargeable voice usage revenue primarily generated in the early stages of the COVID pandemic prior to the easing of certain related restrictions.
Mobile phone ABPU was also impacted by continued declines in chargeable data usage, and the impact of the competitive environment putting pressure on base rate plan prices in the current and prior periods.
Mobile phone ABPU declination was partly offset by growth resulting from our combined TELUS Easy Payment device financing, Peace of Mind endless data plans and TELUS Family Discount offerings, which we introduced at the beginning of the third quarter of , with customers selecting plans with endless data or larger data buckets and higher-value smartphones in the sales mix.
Mobile phone ARPU also continues to be impacted by the continued trend of declining chargeable usage and the impact of the competitive environment putting pressure on base rate plan prices.
These declines more than offset the increased number of customers selecting higher-tier plans with endless data or larger data buckets. Mobile phone churn rate was 0.
Mobile phone gross additions were ,, reflecting a decrease of 68, compared to the same period a year prior. This decline is reflective of reduced customer-switching activity between carriers and the closure of certain conventional sales channels for an undetermined period of time in response to the COVID pandemic.
The decline more than offset growth in the Canadian population, successful promotions and expanded channels, including enhancing the use of our digital footprint.
Total subscriber net additions were 94,, compared to , in the prior year. Mobile phone net additions were 61, in the second quarter of , a decrease of 21, Mobile connected device net additions of 33, as compared to 72, in the second quarter of , as growth in our consumer health personal emergency response system devices was more than offset by lower IoT gross additions from reduced business customer activity.
This was partially offset by higher equipment margins and enhanced cost efficiency programs in response to the COVID pandemic.
This growth was partly offset by a 5. Data services revenue growth was driven by a combination of higher revenues from our diverse portfolio of solutions, including our TI customer care and business services which included contribution from our acquisition of Competence Call Center CCC , growth in business volumes from both expanded services and customer growth, partly offset by temporary disruptions due to government-mandated site closures in response to the COVID pandemic.
Increased revenues from home and business smart technology including security which included contribution from our acquisition of ADT Canada, internet and third wave data services, and TV also contributed to growth.
Additionally, this growth was driven by increased revenues from our virtual care solutions. This growth was partly offset by impacts resulting from the COVID pandemic, including a decline in health revenue mainly from the temporary closures of our conventional Medisys and Copeman clinics for all non-essential services and reduced health benefit claims, in addition to lower revenue from business customers as they redeploy their resources.
Data services revenues growth was also impacted the ongoing decline in legacy data service revenues. Internet net additions of 37, improved by 12,, due to continued net new demand from consumers and businesses as we keep our customers connected through offering a range of installation options including virtual installations, as well as improved churn resulted from our customer first initiatives and retention programs and reduced switching activity between providers due to the COVID pandemic.
Additionally, we continued our focus on connecting more homes and businesses directly to fibre. TV net additions were 8,, a decrease of 8,, mainly due to lower gross additions as a result of the impact of the COVID pandemic and the changing landscape of increased streaming services, partly offset by lower customer churn rate from strong retention efforts and reduced switching activity due to the COVID pandemic.
Security net additions of 12,, reflecting an increase of 1,, was driven by strong organic growth as we keep our customers connected and protected through offering a range of installation options and demand from our bundled product offerings.
Residential voice net losses of 10, increased by 1, compared to the same period a year ago. The residential voice subscriber losses continue to reflect the trend of substitution by wireless and internet-based services, partially mitigated by our expanding fibre footprint and bundled product offerings and our strong retention efforts, including lower-priced offerings.
This decrease reflects: impacts from the COVID pandemic including the temporary capacity disruptions in our TI business due to government-mandated site closures, the impacts to our health business from the temporary closures of Medisys and Copeman clinics and reduced health benefit claims, customers first initiatives including temporary overage waives, and increased bad debt expense.
As well, lower Adjusted EBITDA in the second quarter of was impacted by continued declines in legacy voice and legacy data services, higher employee benefits expense mainly from business acquisitions and to support TI revenue growth, and a decline in the EBITDA contribution from our legacy business services.
These factors were partly offset by an increased contribution from the TI acquisition of CCC, expanded services for existing customers and customer growth, growth from our home and business smart technology including security , and higher internet margins.
Risks and uncertainties that could cause actual performance or events to differ materially from the forward-looking statements made herein and in other TELUS filings include, but are not limited to, the following: The COVID pandemic including its impacts on our customers, our team members and our communities, as well as changes resulting from the pandemic to our business and operations including to the demand for and supply of the products and services that we offer and the channels through which we offer them.
Regulatory decisions and developments including changes to our regulatory regime the timing of announcement or implementation of which are uncertain or the outcomes of proceedings, cases or inquiries relating to its application, including but not limited to those set out in Section 9.
President Donald Trump permitting the Secretary of Commerce to block certain technology transactions deemed to constitute national security risks and the imposition of additional licence requirements on the export, re-export and transfer of goods, services and technology to Huawei Technologies Co.
Operational performance and business combination risks including: our reliance on legacy systems and ability to implement and support new products and services and business operations in a timely manner; our ability to manage the requirements of large enterprise deals; our ability to implement effective change management for system replacements and upgrades, process redesigns and business integrations such as our ability to successfully integrate acquisitions, complete divestitures or establish partnerships in a timely manner and realize expected strategic benefits, including those following compliance with any regulatory orders ; our ability to identify and manage new risks inherent in new service offerings that we may provide, including as a result of acquisitions, which could result in damage to our brand, our business in the relevant area or as a whole, and additional exposure to litigation or regulatory proceedings.
Data protection including risks that malfunctions or unlawful acts could result in unauthorized access to, change, loss, or distribution of data, which may compromise the privacy of individuals and could result in financial loss and harm to our reputation and brand.
Security threats including intentional damage or unauthorized access to our physical assets or our IT systems and networks, which could prevent us from providing reliable service or result in unauthorized access to our information or that of our customers.
Ability to successfully implement cost reduction initiatives and realize planned savings, net of restructuring and other costs, without losing customer service focus or negatively affecting business operations.
Examples of these initiatives are: our operating efficiency and effectiveness program to drive improvements in financial results; business integrations; business product simplification; business process automation and outsourcing; offshoring and reorganizations; procurement initiatives; and real estate rationalization.
Foreign operations and our ability to successfully manage operations in foreign jurisdictions, including managing risks such as currency fluctuations.
Business continuity events including: our ability to maintain customer service and operate our network in the event of human error or human-caused threats, such as cyberattacks and equipment failures that could cause various degrees of network outages; supply chain disruptions, delays and economics, including as a result of government restrictions or trade actions; natural disaster threats; epidemics; pandemics including the ongoing COVID pandemic ; political instability in certain international locations; information security and privacy breaches, including data loss or theft of data; and the completeness and effectiveness of business continuity and disaster recovery plans and responses.
Human resource matters including: recruitment, retention and appropriate training in a highly competitive industry, the level of our employee engagement, and the health of our team.
Our business plans and growth could be negatively affected if existing financing is not sufficient to cover our funding requirements.
Lower than planned free cash flow could constrain our ability to invest in operations, reduce leverage or return capital to shareholders, and could affect our ability to sustain our dividend growth program through This program may be affected by factors such as the competitive environment, economic performance in Canada, our earnings and free cash flow, our levels of capital expenditures and spectrum licence purchases, acquisitions, the management of our capital structure, regulatory decisions and developments, and business continuity events.
Quarterly dividend decisions are subject to assessment and determination by our Board of Directors based on our financial position and outlook.
Taxation matters including: interpretation of complex domestic and foreign tax laws by the relevant tax authorities that may differ from our interpretations; the timing and character of income and deductions, such as tax depreciation and operating expenses; tax credits or other attributes; changes in tax laws, including tax rates; tax expenses being materially different than anticipated, including the taxability of income and deductibility of tax attributes; elimination of income tax deferrals through the use of different tax year-ends for operating partnerships and corporate partners; and changes to the interpretation of tax laws, including those resulting from changes to applicable accounting standards or the adoption of more aggressive auditing practices by tax authorities, tax reassessments or adverse court decisions impacting the tax payable by us.
Litigation and legal matters including: our ability to successfully respond to investigations and regulatory proceedings; our ability to defend against existing and potential claims and lawsuits including intellectual property infringement claims and class actions based on consumer claims, data, privacy or security breaches and secondary market liability , or to negotiate and execute upon indemnity rights or other protections in respect of such claims and lawsuits; and the complexity of legal compliance in domestic and foreign jurisdictions, including compliance with competition, anti-bribery and foreign corrupt practices laws.
Health, safety and the environment including: lost employee work time resulting from illness or injury, public concerns related to radio frequency emissions, environmental issues affecting our business, including climate change, waste and waste recycling, risks relating to fuel systems on our properties, changing government and public expectations regarding environmental matters and our responses; and challenges associated with the COVID pandemic and our response to it, which may add to or accentuate these factors.
Economic growth and fluctuations including: the state of the economy in Canada, which may be influenced by economic and other developments outside of Canada, including potential outcomes of yet unknown policies and actions of foreign governments and the ongoing COVID pandemic as well as public and private sector responses to the pandemic; expectations of future interest rates; inflation; unemployment levels; effects of fluctuating oil prices; effects of low business spending such as reducing investments and cost structure ; pension investment returns, funding and solvency discount rates; fluctuations in foreign exchange rates of the currencies in the regions in which we operate; the impact of tariffs on trade between Canada and the U.
This cautionary statement qualifies all of the forward-looking statements in this document. More Financials. Period : Day Week. Technical analysis.
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Second quarters ended June Per cent. All information pertaining to shares outstanding and per-share amounts in this news release for periods before March 17, , reflects retrospective treatment of the two-for-one share split.
Capital expenditures include assets purchased, excluding right-of-use lease assets, but not yet paid for, and consequently differ from Cash payments for capital assets, excluding spectrum licences, as reported in the interim consolidated financial statements.
The sum of active mobile phone subscribers, mobile connected device subscribers, internet subscribers, residential voice subscribers, TV subscribers and security subscribers, measured at the end of the respective periods based on information in billing and other source systems.
Income tax-related adjustments. Lease-up period and other equity losses related to real estate joint ventures. Long-term debt prepayment premium, after income taxes.
Retirement of a provision arising from business acquisition-related written put options within TI, after income taxes. Adjusted Net income.
Restructuring and other costs, after income taxes, per share. Income tax-related adjustments, per share. Long-term debt prepayment premium, after income taxes, per share.
Retirement of a provision arising from business acquisition-related written put options within TI, after income taxes, per share.
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