UPDATE 2-Canada's Telus reports 10 pct profit rise on wireless, TV growth

Fri Nov 8, 2013 12:48pm EST
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(Adds analyst comment, detail from conference call, share reaction)

By Alastair Sharp

TORONTO Nov 8 (Reuters) - Telus Corp, one of Canada's biggest telecom companies, posted a 10 percent rise in third-quarter profit on Friday, helped by strong growth in its wireless unit as well as steady customer additions for television and Internet service.

Its shares gained more than 2 percent, hitting a five-month high, as the company upped its dividend payout and said it was investing aggressively in building out its networks in order to maintain its growth profile over the longer term.

"In our view, these results and the dividend per share increase clearly show why Telus is our top pick," Canaccord Genuity analyst Dvai Ghose wrote in a note to clients.

The Vancouver-based company said its net income was C$356 million ($341 million), or 56 Canadian cents a share, compared with C$323 million, or 49 cents a share, a year before.

Operating revenue rose 3.6 percent to C$2.87 billion.

On an adjusted basis, excluding restructuring and tax-related costs, the company earned 58 Canadian cents a share.

Analysts had on average expected Telus to earn 54 Canadian cents a share on revenue of C$2.90 million, according to Thomson Reuters I/B/E/S.   Continued...