(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