3 rd quarter 2003 TELUS Mobility results George Cope, CEO TELUS Mobility.

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Presentation transcript:

3 rd quarter 2003 TELUS Mobility results George Cope, CEO TELUS Mobility

13 101K 94K Q3-03 Q3-02 TELUS continues focus on profitable subscriber growth with net adds up 7.5% YoY net additions prepaid postpaid prepaid postpaid

14 ARPU increasing Q3-03 $58 Q3-02 $60 Average Revenue Per Unit ($/month) third consecutive quarter of YoY ARPU increases

15 TELUS MobilityRogers AT&TBCE Wireless $58 $47 ARPU continued industry leadership Source: Company reports Q3-02 Q3-03 $60 $50 positive industry-wide trend

16 continued focus on retention evident in results 1.7% Q % Q % churn

17 BCECingular 2.7% 1.4% 2.0% 1.9% 1.4% TELUSVerizonAT&TRogersNextel 3.3% 1 Sprint PCS Microcell 3.0% 1 2.8% T-Mobile TELUS’ Q3 churn rate remains best-in-class churn 1 Microcell, T-Mobile USA Q2-03 churn rates

18 profitable subscriber growth subscriber economics improving 9%12%COA/ Lifetime revenue 1.4%1.7%Churn $60ARPU$58 $406COA (excl. retention) $391 Q3-03Q3-02 $4,300      $3,400Lifetime revenue

19 EBITDA growth & margin expansion Wireless EBITDA ($) Q3-02 Q3-03 $165M 33% 43% $246M EBITDA margin (network revenue) industry leading EBITDA growth of 49% & EBITDA margin of 43%

20 EBITDA less capex $83M cash flow improvement $67.8M Q3-02 Q3-03 $150.4M

21 operating cash flow yield 15%Capex intensity 2 EBITDA margin 1 43% Cash flow yield 3 24% Q3-03 attractive wireless cash flow yields improving 1 EBITDA margin based on network revenue. EBITDA margin based on total revenue was 39% for Q Capex as % of total revenue 3 EBITDA less capex, as a % of total revenue

22 TELUS Mobility’s price-matching strategy

23  nation-wide Direct Connect  expanded handset line-up  coverage expansion in BC & AB new services Mike goes nation-wide

24 new services PCS - camera phones & picture messaging Product differentiation  exclusive, cool devices  no subsidy, unless on contract  first CDMA carrier in Canada  send & receive images with sound & text between camera phones  25 cents per picture message sent  strong branding campaign

25 conclusion Q3 TELUS Mobility value creation  Net additions 101k  7.5%  Churn1.4%  30 pts  ARPU $60  $2  Network rev.$577M  17%  EBITDA$246M  49%  EBITDA margin 43%  9 pts  Capex intensity15%  3 pts  Cash flow $150M  $83M all key metrics moving in right direction for continued creation of significant shareholder value