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Telus Q2 profit drops, but revenue rises; shares waver

Last updated: 16:55 07 Aug 2015 EDT, First published: 14:55 07 Aug 2015 EDT

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Telus had 8.352,000 wireless subscribers at the end of the quarter, up 3.3 per cent from the same time last year and a net increase of 63,000 from the end of this year's first quarter.

Telus (TSE:T), one of Canada’s three big telecoms providers, posted a 10.5 percent fall in quarterly profit, but reported a 5.1% rise in revenue. Shares fluctuated.

Net income fell to C$341 million, or C$0.56 per share, in the April-to-June quarter, from C$381 million, or C$0.62 per share, a year earlier, the Vancouver, British Columbia-based company said in a statement today.

That included $59 million of restructuring and similar costs related to both the closure of the 59 Black's photography stores and its non-core real estate.

Earnings excluding some items were C$0.66 per share, matching the average estimate of analysts surveyed by Capital IQ.

Operating revenue rose 5.1 percent to C$3.10 billion. Analysts predicted C$3.08 billion, the average of estimates compiled by Capital IQ.

The company's wireless segment accounted for $1.7 billion of revenue, up 7.4 per cent from last year, while the wireline segment — including phone, Internet and TV distribution services for homes and business — was up 2.3 per cent to $1.4 billion.

Telus had 8.352,000 wireless subscribers at the end of the quarter, up 3.3 per cent from the same time last year and a net increase of 63,000 from the end of this year's first quarter.

Revenue from data services over its wireline network increased by 7.8 percent.

Telus chief executive and president Joe Natale attributed the company's ability to attract and keep subscribers to a strategic focus on creating customer loyalty.

"In this very dynamic and competitive Canadian marketplace, Telus' consistent performance demonstrates how expecting more from ourselves translates into strong results for our customers and shareholders," Natale said.

Shares were down 0.4 percent at $44.64 at 2:35 p.m. in New York.

 

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