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Telus's adjusted profit rises in the second quarter

Published: 10:50 08 Aug 2013 EDT

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Telus (TSE:T) (NYSE:TU) added more subscribers and generated higher revenue from each customer, both on the wireless and landline sides, helping second quarter results to come in line with estimates. 

Revenue rose six per cent to $2.8 billion from $2.7 billion for the same period a year ago, consistent with the mean analyst forecast.

Net income declined 4.3 per cent to $286 million or 44 cents a share from $299 million or 46 cents a share in last year's second quarter. 

After removing one-time items, Telus's adjusted profit gained 13.5 per cent to $354 million or 54 cents a share, over the $312 million or 48 cents a share it reported in the same prior-year period and one cent ahead of the consenus.

Wireless revenues jumped 5.9 per cent to $1.5 billion, while wireline revenue, including landlines, television and high-speed internet, moved 6.3 per cent higher to $1.3 billion. 

In its wireless operations, data revenue rose 17 per cent to $601 million as more customers switched to smart phones. The average revenue per user, or ARPU, for data usage increased 13 per cent to $26.44, while the combined ARPU nudged up 1.4 per cent $61.12. 

Telus added 100,000 post-paid wireless subscribers and lost 21,000 pre-paid customers.

The company added 31,000 television subscribers in the quarter, 12,000 fewer than last year. High-speed Internet net additions of 13,000 were lower by 7,000 over the same quarter a year ago.

During the quarter Telus said it returned $490 million to shareholders, including $209 million in dividends and $281 million in share purchases.

The company reaffirmed the full-year guidance announced in February but added $25 million to its restructuring budget, bringing it to $100 million.

Shares of Telus slipped 0.9 per cent Thursday morning. They have fallen about 4.4 per cent so far this year. 

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