Telus profit rises on postpaid subscriber additions

Fri Nov 9, 2012 7:33am EST
 

(Reuters) - Telus Corp (T.TO: Quote), Canada's third-largest wireless company, reported an 8 percent rise in third-quarter profit as it added more postpaid customers than larger rival Rogers Communications Inc's (RCIb.TO: Quote).

The company also said Chief Financial Officer Robert McFarlane, who has been with Telus for 12 years, will retire at the end of the year. He will be replaced by John Gossling.

Telus added 116,000 postpaid wireless subscribers in the quarter ended September 30. Rogers's postpaid customer base grew by 76,000, while BCE Inc (BCE.TO: Quote), the country's largest telecom company, added 148,502 net postpaid customers in the period.

The number of postpaid subscribers - who often enter into multi-year contracts and pay more than prepaid customers - is watched closely.

The Vancouver-based company also stopped charging equipment renewal and activation fee for its customers, in a bid to simplify the process, associated with various services.

The company said last month that its 4G Long-Term Evolution wireless service covered 61 percent of Canada's population.

Telus's net income rose to C$351 million, or C$1.08 per share, in the quarter from C$326 million, or C$1 per share, a year earlier.

Revenue rose 6 percent to C$2.8 billion.

Analysts had expected earnings of C$1.07 per share on revenue of C$2.75 billion, according to Thomson Reuters I/B/E/S.

Telus raised its quarterly dividend to C$0.64 from C$0.61. (Reporting by Ankur Banerjee in Bangalore and Allison Martell in Toronto; Editing by Joyjeet Das)