($ millions, except per share amounts)
2015 Q3
2015 Q2
2015 Q1
2014 Q4
2014 Q3
2014 Q2
2014 Q1
2013 Q4
Operating revenues
3,155
3,102
3,028
3,128
3,028
2,951
2,895
2,948
Operating expenses
Goods and services purchased1
1,394
1,372
1,284
1,476
1,333
1,268
1,222
1,349
Employee benefits expense1
693
649
609
651
630
610
596
648
Depreciation and amortization
471
464
456
468
459
444
463
461
Total operating expenses
2,558
2,485
2,349
2,595
2,422
2,322
2,281
2,458
Operating income
597
617
679
533
606
629
614
490
Financing costs
106
110
117
115
124
115
102
110
Income before income taxes
491
507
562
418
482
514
512
380
Income taxes
126
166
147
106
127
133
135
90
Net income and Net income
attributable to Common Shares
365
341
415
312
355
381
377
290
Net income per Common Share:
Basic (Basic EPS)
0.61
0.56
0.68
0.51
0.58
0.62
0.61
0.47
Adjusted basic EPS2
0.66
0.66
0.70
0.53
0.64
0.63
0.62
0.49
Diluted
0.61
0.56
0.68
0.51
0.58
0.62
0.60
0.46
Dividends declared per
Common Share
0.42
0.42
0.40
0.40
0.38
0.38
0.36
0.36
Additional information:
EBITDA2
1,068
1,081
1,135
1,001
1,065
1,073
1,077
951
Restructuring and other like costs
included in EBITDA2
51
59
17
26
30
11
8
33
EBITDA - excluding restructuring and
other like costs2
1,119
1,140
1,152
1,027
1,095
1,084
1,085
984
Cash provided by operating activities
1,018
943
718
917
1,037
855
598
726
Free cash flow2
310
300
271
337
219
210
291
136
Nine-month periods ended
Third quarters ended September 30
September 30
($ millions)
2015
2014
Change
2015
2014
Change
Goods and services purchased
1,394
1,333
4.6 %
4,050
3,823
5.9 %
Employee benefits expense
693
630
10.0 %
1,951
1,836
6.3 %
Depreciation
361
363
(0.6)%
1,069
1,057
1.1 %
Amortization of intangible assets
110
96
14.6 %
322
309
4.2 %
2,558
2,422
5.6 %
7,392
7,025
5.2 %
Nine-month periods ended
Third quarters ended September 30
September 30
($ millions, except tax rates)
2015
2014
Change
2015
2014
Change
Basic blended income tax expense at weighted
average statutory income tax rates
130
126
3.2 %
412
395
4.3 %
Revaluation of deferred income tax liability to
reflect future statutory income tax rates
-
-
-
48
-
n/m
Adjustments recognized in the current period for
income taxes of prior periods
(4)
-
n/m
(23)
(2) n/m
Other
-
1
(100.0)
2
2
- %
Income taxes
126
127
(0.8)%
439
395
11.1 %
Blended weighted average federal, provincial and
non-Canadian statutory tax rate (%)
26.5
26.1
0.4 pts.
26.4
26.2
0.2 pts.
Effective tax rate (%)
25.7
26.3
(0.6)pts.
28.1
26.2
1.9 pts.
n
Nine-month periods ended
Third quarters ended September 30
September 30
($ millions)
2015
2014
Change
2015
2014
Change
Net income
365
355
2.8 %
1,121
1,113
0.7 %
Other comprehensive income (loss) (net of income taxes):
Items that may be subsequently reclassified to
income
14
1
n/m
14
(2)
n/m
Item never subsequently reclassified to income
- Employee defined benefit plans
re-measurements
(156)
(14)
n/m
(41)
207
(119.8)%
Comprehensive income
223
342
(34.8)%
1,094
1,318
(17.0)%
As at September 30
2015
20141
Change
Subscribers (000s):
Postpaid
7,290
6,990
4.3 %
Prepaid
1,131
1,205
(6.1)%
Total
8,421
8,195
2.8 %
Postpaid proportion of subscriber base (%)
86.6
85.3
1.3 pts.
HSPA+ population coverage2 (millions)
35.7
35.2
1.4 %
LTE population coverage2 (millions)
34.3
30.2
13.6 %
Nine-month periods ended
Third quarters ended September 30
September 30
2015
20141
Change
2015
20141
Change
Subscriber gross additions (000s):
Postpaid
269
286
(5.9)%
741
767
(3.4)%
Prepaid
121
144
(16.0)%
331
414
(20.0)%
Total
390
430
(9.3)%
1,072
1,181
(9.2)%
Subscriber net additions (000s):
Postpaid
69
113
(38.9)%
182
239
(23.8)%
Prepaid
-
(6)
n/m %
(42)
(73)
42.5 %
Total
69
107
(35.5)%
140
166
(15.7)%
Blended ARPU, per month3 ($)
64.22
63.52
1.1 %
63.35
61.88
2.4 %
Churn, per month3 (%)
Blended
1.28
1.32
(0.04)pts.
1.24
1.40
(0.16) pts.
Postpaid
0.97
0.90
0.07 pts.
0.91
0.93
(0.02) pts.
Cost of acquisition (COA) per gross subscriber
addition3 ($)
400
380
5.3 %
399
367
8.7 %
Retention spend to network revenue3 (%)
14.3
11.5
2.8 pts.
12.8
11.0
1.8 pts.
Retention volume3 (000s)
569
499
14.0 %
1,560
1,393
12.0 %
Nine-month periods ended
Third quarters ended September 30
September 30
($ millions)
2015
2014
Change
2015
2014
Change
Network revenues
1,600
1,538
4.0 %
4,703
4,459
5.5 %
Equipment and other
167
146
14.4 %
458
384
19.3 %
External operating revenues
1,767
1,684
4.9 %
5,161
4,843
6.6 %
Intersegment network revenue
16
13
23.1 %
44
39
12.8 %
Total operating revenues
1,783
1,697
5.1 %
5,205
4,882
6.6 %
Data revenue to network revenues (%)
55
51
4 pts.
54
49
5 pts.
Nine-month periods ended
Third quarters ended September 30
September 30
($ millions)
2015
2014
Change
2015
2014
Change
Goods and services purchased:
Equipment sales expenses
425
362
17.4 %
1,143
971
17.7 %
Network operating expenses
197
194
1.5 %
569
582
(2.2)%
Marketing expenses
113
109
3.7 %
307
288
6.6 %
Other1
151
158
(4.4)%
487
437
11.4 %
Employee benefits expense1
182
174
4.6 %
521
506
3.0 %
Total operating expenses
1,068
997
7.1 %
3,027
2,784
8.7 %
Nine-month periods ended
Third quarters ended September 30
September 30
($ millions, except margins)
2015
2014
Change
2015
2014
Change
EBITDA
715
700
2.0 %
2,178
2,098
3.8 %
Restructuring and other like costs included in
EBITDA
14
18
(22.2)%
56
24
133.3%
EBITDA - excluding restructuring and other like
costs
729
718
1.4 %
2,234
2,122
5.2 %
EBITDA margin (%)
40.1
41.2
(1.1) pts.
41.8
43.0
(1.2) pts.
EBITDA margin - excluding restructuring and
other like costs (%)
40.9
42.3
(1.4) pts.
42.9
43.5
(0.6) pts.
Nine-month periods ended
Third quarters ended September 30
September 30
($ millions)
2015
2014
Change
2015
2014
Change
Data service and equipment
950
858
10.7 %
2,781
2,561
8.6 %
Voice service
373
399
(6.5)%
1,138
1,222
(6.9)%
Other services and equipment
53
58
(8.6)%
166
188
(11.7)%
Revenues arising from contracts with customers
1,376
1,315
4.6 %
4,085
3,971
2.9 %
Other operating income
12
29
(58.6)%
39
60
(35.0)%
External operating revenues
1,388
1,344
3.3 %
4,124
4,031
2.3 %
Intersegment revenue
44
46
(4.3)%
130
131
(0.8)%
Total operating revenues
1,432
1,390
3.0 %
4,254
4,162
2.2 %
Nine-month periods ended
Third quarters ended September 30
September 30
($ millions)
2015
2014
Change
2015
2014
Change
Goods and services purchased1
568
569
(0.2)%
1,718
1,715
0.2 %
Employee benefits expense1
511
456
12.1 %
1,430
1,330
7.5 %
Total operating expenses
1,079
1,025
5.3 %
3,148
3,045
3.4 %
Nine-month periods ended
Third quarters ended September 30
September 30
($ millions)
2015
2014
Change
2015
2014
Change
EBITDA
353
365
(3.2)%
1,106
1,117
(0.9)%
Restructuring and other like costs included in
EBITDA
37
12
n/m
71
25
184.0 %
EBITDA - excluding restructuring and other like
costs
390
377
3.6 %
1,177
1,142
3.1 %
EBITDA margin (%)
24.7
26.3
(1.6)pts.
26.0
26.8
(0.8)pts.
EBITDA - excluding restructuring and other like
costs margin (%)
27.3
27.2
0.1 pts.
27.7
27.4
0.3 pts.