(In millions of dollars, except margins and per share |
Three months ended September 30 |
Nine months ended September 30 |
||||
amounts) |
2015 |
2014 |
% Chg |
2015 |
2014 |
% Chg |
Operating revenue |
||||||
Wireless |
1,973 |
1,880 |
5 |
5,670 |
5,407 |
5 |
Cable |
871 |
864 |
1 |
2,610 |
2,596 |
1 |
Business Solutions |
94 |
96 |
(2) |
282 |
285 |
(1) |
Media |
473 |
440 |
8 |
1,519 |
1,282 |
18 |
Corporate items and intercompany eliminations |
(27) |
(28) |
(4) |
(119) |
(86) |
38 |
Operating revenue |
3,384 |
3,252 |
4 |
9,962 |
9,484 |
5 |
Adjusted operating profit |
||||||
Wireless |
879 |
888 |
(1) |
2,485 |
2,521 |
(1) |
Cable |
416 |
409 |
2 |
1,232 |
1,241 |
(1) |
Business Solutions |
31 |
32 |
(3) |
86 |
88 |
(2) |
Media |
58 |
23 |
152 |
116 |
53 |
119 |
Corporate items and intercompany eliminations |
(39) |
(40) |
(3) |
(113) |
(117) |
(3) |
Adjusted operating profit 1 |
1,345 |
1,312 |
3 |
3,806 |
3,786 |
1 |
Adjusted operating profit margin 1 |
39.7% |
40.3% |
(0.6 pts) |
38.2% |
39.9% |
(1.7 pts) |
Net income |
464 |
332 |
40 |
1,082 |
1,044 |
4 |
Basic earnings per share |
$ 0.90 |
$ 0.64 |
41 |
$ 2.10 |
$ 2.03 |
3 |
Adjusted net income 1 |
472 |
405 |
17 |
1,159 |
1,177 |
(2) |
Adjusted basic earnings per share 1 |
$ 0.92 |
$ 0.79 |
16 |
$ 2.25 |
$ 2.29 |
(2) |
Additions to property, plant and equipment |
571 |
638 |
(11) |
1,667 |
1,702 |
(2) |
Free cash flow 1 |
660 |
370 |
78 |
1,402 |
1,162 |
21 |
Cash provided by operating activities |
1,456 |
1,057 |
38 |
2,797 |
2,667 |
5 |
Three months ended September 30 |
Nine months ended September 30 |
|||||
(In millions of dollars, except margins) |
2015 1 |
2014 |
% Chg |
20151 |
2014 |
% Chg |
Operating revenue |
||||||
Network revenue |
1,776 |
1,732 |
3 |
5,155 |
5,042 |
2 |
Equipment sales |
197 |
148 |
33 |
515 |
365 |
41 |
Operating revenue |
1,973 |
1,880 |
5 |
5,670 |
5,407 |
5 |
Operating expenses |
||||||
Cost of equipment 2 |
460 |
361 |
27 |
1,276 |
991 |
29 |
Other operating expenses |
634 |
631 |
- |
1,909 |
1,895 |
1 |
Operating expenses |
1,094 |
992 |
10 |
3,185 |
2,886 |
10 |
Adjusted operating profit |
879 |
888 |
(1) |
2,485 |
2,521 |
(1) |
Adjusted operating profit margin as a % of network revenue |
49.5% |
51.3% |
(1.8 pts) |
48.2% |
50.0% |
(1.8 pts) |
Additions to property, plant and equipment |
195 |
285 |
(32) |
631 |
720 |
(12) |
Three months ended September 30 |
Nine months ended September 30 |
|||||
(In thousands, except churn, ARPA, and ARPU) |
2015 |
2014 |
Chg |
2015 |
2014 |
Chg |
Postpaid |
||||||
Gross additions |
399 |
336 |
63 |
989 |
941 |
48 |
Net additions |
77 |
17 |
60 |
75 |
57 |
18 |
Total postpaid subscribers 2,3 |
8,240 |
8,131 |
109 |
8,240 |
8,131 |
109 |
Churn (monthly) |
1.31% |
1.31% |
- |
1.25% |
1.21% |
0.04 pts |
ARPA (monthly) |
$ 113.34 |
$ 108.97 |
$ 4.37 |
$ 110.27 |
$ 105.86 |
$ 4.41 |
Prepaid |
||||||
Gross additions |
218 |
165 |
53 |
498 |
369 |
129 |
Net additions (losses) |
77 |
41 |
36 |
48 |
(63) |
111 |
Total prepaid subscribers 3,4 |
1,579 |
1,366 |
213 |
1,579 |
1,366 |
213 |
Churn (monthly) |
3.08% |
3.12% |
(0.04 pts) |
3.55% |
3.53% |
0.02 pts |
Blended ARPU |
$ 61.02 |
$ 60.96 |
$ 0.06 |
$ 59.86 |
$ 59.23 |
$ 0.63 |
Three months ended September 30 |
Nine months ended September 30 |
|||||
(In millions of dollars, except margins) |
2015 1 |
2014 |
% Chg |
2015 1 |
2014 |
% Chg |
Operating revenue |
||||||
Internet |
344 |
311 |
11 |
995 |
928 |
7 |
Television |
415 |
433 |
(4) |
1,266 |
1,301 |
(3) |
Phone |
110 |
118 |
(7) |
343 |
360 |
(5) |
Service revenue |
869 |
862 |
1 |
2,604 |
2,589 |
1 |
Equipment sales |
2 |
2 |
- |
6 |
7 |
(14) |
Operating revenue |
871 |
864 |
1 |
2,610 |
2,596 |
1 |
Operating expenses |
||||||
Cost of equipment |
- |
1 |
(100) |
2 |
4 |
(50) |
Other operating expenses |
455 |
454 |
- |
1,376 |
1,351 |
2 |
Operating expenses |
455 |
455 |
- |
1,378 |
1,355 |
2 |
Adjusted operating profit |
416 |
409 |
2 |
1,232 |
1,241 |
(1) |
Adjusted operating profit margin |
47.8% |
47.3% |
0.5 pts |
47.2% |
47.8% |
(0.6 pts) |
Additions to property, plant and equipment |
244 |
274 |
(11) |
722 |
764 |
(5) |
Three months ended September 30 |
Nine months ended September 30 |
|||||
(In thousands) |
2015 |
2014 |
Chg |
2015 |
2014 |
Chg |
Internet |
||||||
Net additions |
24 |
16 |
8 |
21 |
38 |
(17) |
Total Internet subscribers 2,3 |
2,032 |
1,999 |
33 |
2,032 |
1,999 |
33 |
Television |
||||||
Net losses |
(31) |
(30) |
(1) |
(104) |
(83) |
(21) |
Total television subscribers 2,3 |
1,920 |
2,044 |
(124) |
1,920 |
2,044 |
(124) |
Phone |
||||||
Net (losses) additions |
(14) |
(7) |
(7) |
(45) |
4 |
(49) |
Total phone subscribers 2,3 |
1,105 |
1,157 |
(52) |
1,105 |
1,157 |
(52) |
Cable homes passed 2,3 |
4,130 |
4,025 |
105 |
4,130 |
4,025 |
105 |
Total service units4 |
||||||
Net losses |
(21) |
(21) |
- |
(128) |
(41) |
(87) |
Total service units 2,3 |
5,057 |
5,200 |
(143) |
5,057 |
5,200 |
(143) |
Three months ended September 30 |
Nine months ended September 30 |
|||||
(In millions of dollars, except margins) |
2015 |
2014 |
% Chg |
2015 |
2014 |
% Chg |
Operating revenue |
||||||
Next generation |
71 |
69 |
3 |
214 |
200 |
7 |
Legacy |
22 |
26 |
(15) |
65 |
82 |
(21) |
Service revenue |
93 |
95 |
(2) |
279 |
282 |
(1) |
Equipment sales |
1 |
1 |
- |
3 |
3 |
- |
Operating revenue |
94 |
96 |
(2) |
282 |
285 |
(1) |
Operating expenses |
63 |
64 |
(2) |
196 |
197 |
(1) |
Adjusted operating profit |
31 |
32 |
(3) |
86 |
88 |
(2) |
Adjusted operating profit margin |
33.0% |
33.3% |
(0.3 pts) |
30.5% |
30.9% |
(0.4 pts) |
Additions to property, plant and equipment |
41 |
28 |
46 |
122 |
93 |
31 |
Three months ended September 30 |
Nine months ended September 30 |
|||||
(In millions of dollars, except margins) |
2015 |
2014 |
% Chg |
2015 |
2014 |
% Chg |
Operating revenue |
473 |
440 |
8 |
1,519 |
1,282 |
18 |
Operating expenses |
415 |
417 |
- |
1,403 |
1,229 |
14 |
Adjusted operating profit |
58 |
23 |
152 |
116 |
53 |
119 |
Adjusted operating profit margin |
12.3% |
5.2% |
7.1 pts |
7.6% |
4.1% |
3.5 pts |
Additions to property, plant and equipment |
12 |
23 |
(48) |
32 |
66 |
(52) |
Three months ended September 30 |
Nine months ended September 30 |
|||||
(In millions of dollars, except capital intensity) |
2015 |
2014 |
% Chg |
2015 |
2014 |
% Chg |
Additions to property, plant and equipment |
||||||
Wireless |
195 |
285 |
(32) |
631 |
720 |
(12) |
Cable |
244 |
274 |
(11) |
722 |
764 |
(5) |
Business Solutions |
41 |
28 |
46 |
122 |
93 |
31 |
Media |
12 |
23 |
(48) |
32 |
66 |
(52) |
Corporate |
79 |
28 |
182 |
160 |
59 |
171 |
Total additions to property, plant and equipment 1 |
571 |
638 |
(11) |
1,667 |
1,702 |
(2) |
Capital intensity 2 |
16.9% |
19.6% |
(2.7 pts) |
16.7% |
17.9% |
(1.2 pts) |
Three months ended September 30 |
Nine months ended September 30 |
|||||
(In millions of dollars) |
2015 |
2014 |
% Chg |
2015 |
2014 |
% Chg |
Depreciation |
536 |
492 |
9 |
1,576 |
1,460 |
8 |
Amortization |
40 |
41 |
(2) |
121 |
124 |
(2) |
Total depreciation and amortization |
576 |
533 |
8 |
1,697 |
1,584 |
7 |
Three months ended September 30 |
Nine months ended September 30 |
|||||
(In millions of dollars) |
2015 |
2014 |
% Chg |
2015 |
2014 |
% Chg |
Interest on borrowings 1 |
189 |
199 |
(5) |
571 |
584 |
(2) |
Interest on post-employment benefits liability |
3 |
2 |
50 |
8 |
5 |
60 |
Loss on repayment of long-term debt |
- |
- |
- |
7 |
29 |
(76) |
Loss on foreign exchange |
3 |
4 |
(25) |
9 |
6 |
50 |
Capitalized interest |
(9) |
(7) |
29 |
(24) |
(20) |
20 |
Other |
4 |
4 |
- |
11 |
11 |
- |
Total finance costs |
190 |
202 |
(6) |
582 |
615 |
(5) |
As at |
As at |
||||
September 30 |
December 31 |
||||
(In millions of dollars) |
2015 |
2014 |
$ Chg |
% Chg |
Explanation of significant changes |
Assets | |||||
Current assets: |
|||||
Cash and cash equivalents |
- |
176 |
(176) |
(100) |
See "Managing our Liquidity and Financial Resources" for more information. |
Accounts receivable |
1,648 |
1,591 |
57 |
4 |
Reflects higher subscriber receivables as a result of increased subscriber levels, business seasonality, and timing of collections. |
Inventories |
269 |
251 |
18 |
7 |
Reflects higher Wireless handset inventory as a result of business seasonality. |
Other current assets |
240 |
191 |
49 |
26 |
Reflects an increase in prepaid expenses. |
Current portion of derivative instruments |
178 |
136 |
42 |
31 |
Reflects changes in market values of debt and expenditure derivatives primarily as a result of the depreciation of the Cdn$ relative to the US$, offset by the settlement and maturity of other derivatives discussed in "Financial Risk Management". |
Total current assets |
2,335 |
2,345 |
(10) |
- |
|
Property, plant and equipment |
10,758 |
10,655 |
103 |
1 |
Reflects additions to property, plant and equipment, partially offset by depreciation. See "Additions to Property, Plant and Equipment" for more information. |
Intangible assets |
7,274 |
6,588 |
686 |
10 |
Reflects spectrum licence additions from Mobilicity, Shaw, and the 2500 MHz auction; partially offset by amortization of other intangible assets. |
Investments |
2,274 |
1,898 |
376 |
20 |
Reflects the investment addition of Glentel Inc, partially offset by unrealized mark-to-market losses on available for sale investments. |
Derivative instruments |
1,742 |
788 |
954 |
121 |
See "Current portion of derivative instruments" for more information. |
Other long-term assets |
211 |
356 |
(145) |
(41) |
Primarily reflects the utilization of $250 million of deposits for the Shaw spectrum licences. |
Deferred tax assets |
9 |
9 |
- |
- |
n/m |
Goodwill |
3,887 |
3,883 |
4 |
- |
n/m |
Total assets |
28,490 |
26,522 |
1,968 |
7 |
|
Liabilities and shareholders' equity | |||||
Current liabilities: |
|||||
Bank advances |
11 |
- |
11 |
n/m |
See "Managing our Liquidity and Financial Resources" for more information. |
Short-term borrowings |
859 |
842 |
17 |
2 |
Reflects net funding received under the accounts receivable securitization program. |
Accounts payable and accrued liabilities |
2,337 |
2,578 |
(241) |
(9) |
Reflects a decrease in trade payables as a result of business seasonality and lower accrued interest on long-term debt as a result of the timing of scheduled payments. |
Income tax payable |
86 |
47 |
39 |
83 |
Reflects the excess of income tax payable over tax installments paid to date. |
Current portion of provisions |
12 |
7 |
5 |
71 |
n/m |
Unearned revenue |
410 |
443 |
(33) |
(7) |
Reflects decreases pertaining to our loyalty programs and the realization of other customer deposits; partially offset by increases in customer deposits at the Toronto Blue Jays. |
Current portion of long-term debt |
1,000 |
963 |
37 |
4 |
n/m |
Current portion of derivative instruments |
52 |
40 |
12 |
30 |
See "Financial Risk Management" for more information. |
Total current liabilities |
4,767 |
4,920 |
(153) |
(3) |
|
Provisions |
51 |
55 |
(4) |
(7) |
n/m |
Long-term debt |
15,487 |
13,824 |
1,663 |
12 |
Reflects an additional $1 billion of borrowings from our non- revolving credit facility obtained in April 2015 as well as the appreciation of the US$ relative to the Cdn$. See "Financial Risk Management" for more information. |
Derivative instruments |
76 |
11 |
65 |
n/m |
See "Current portion of derivative instruments" for more information. |
Other long-term liabilities |
530 |
462 |
68 |
15 |
Reflects the liability related to our planned divestiture of Glentel's international operations partially offset by a decrease in long-term pension obligations. |
Deferred tax liabilities |
1,831 |
1,769 |
62 |
4 |
n/m |
Total liabilities |
22,742 |
21,041 |
1,701 |
8 |
|
Shareholders' equity |
5,748 |
5,481 |
267 |
5 |
Reflects changes in retained earnings and equity reserves. |
Total liabilities and shareholders' equity |
28,490 |
26,522 |
1,968 |
7 |