(Updates with closing share price in fifth paragraph.)
Nov. 4 (Bloomberg) -- Telus Corp., Canada’s third-largest wireless carrier, reported a bigger gain in third-quarter profit than analysts anticipated after adding more mobile subscribers than rivals BCE Inc. and Rogers Communications Inc.
Net income climbed 30 percent to C$326 million ($320 million), or C$1 a share, from C$251 million, or 78 cents, a year earlier, the Vancouver-based company said today in a statement. Analysts predicted 97 cents a share, the average of estimates compiled by Bloomberg.
The results suggest Telus may be less affected by competition from new Eastern Canada-based carriers Videotron and Wind Mobile than BCE and Rogers because it gets more revenue from the western part of the country. Telus, Montreal-based BCE and Toronto-based Rogers all saw customer turnover increase last quarter.
“Telus continues to post very strong wireless results,” said Maher Yaghi, an analyst at Desjardins Securities Inc. in Montreal. He recommends holding the shares.
Telus was little changed at C$53.94 at the close in Toronto. The shares have climbed 19 percent this year.
Wireless revenue climbed 9 percent to C$1.4 billion, helped by a 53 percent jump in data revenue growth, the company said.
Chief Executive Officer Darren Entwistle announced a 3-cent boost in Telus’s quarterly dividend to 58 cents, its second increase in the payout this year.
Telus’s gain of 133,000 contract subscribers last quarter was less than the 150,000 predicted by Yaghi. BCE, which reported yesterday, added 126,854 customers on that basis. Rogers, Canada’s biggest wireless carrier, gained 74,000.
Telus said average revenue per wireless customer rose by C$1.77 to C$60.52, compared with Yaghi’s C$59.10 estimate.
Sales advanced 6.5 percent to C$2.62 billion. Analysts predicted C$2.59 billion.
(Telus held a conference call today to discuss the results. For a replay, click on T CN <Equity> CWP <GO> and go to the link under Investor Relations to listen.)
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