UPDATE 2-Canada's Telus profit grows with wireless bounce; shares rise

Fri Aug 5, 2016 1:40pm EDT
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(Adds details from conference call, analyst comment, share move)

By Alastair Sharp

TORONTO Aug 5 (Reuters) - Telus Corp , one of Canada's three biggest telecommunications companies, on Friday reported surprisingly strong wireless subscriber growth and raised the low end of its profit outlook, helping push its shares higher.

The company's second-quarter results, which included higher earnings, rounded out a strong quarter for wireless growth across the industry. Vancouver-based Telus bounced back from a slow start to the year, brushing off weakness in the oil-rich province of Alberta, one of its primary markets, caused by lower crude prices and the aftermath of a major wildfire.

"Let's go out and see if we can leverage this crisis because one of the things our technology should be able to deliver for business customers is greater business efficiency and workforce productivity," Telus Chief Executive Officer Darren Entwistle said on a call with analysts.

Telus said it added 61,000 net postpaid wireless customers in the quarter, lower than the 76,000 who signed up a year earlier but much higher than the 8,000 in the first quarter.

In the same period, market leader Rogers Communications Inc added 65,000 such customers, and BCE Inc, Telus' network-sharing partner, signed almost 70,000.

RBC Capital Markets analyst Drew McReynolds wrote in a note that Telus' operational results should "ease fears around growth and execution" and that the robust wireless subscriber growth was a positive surprise.

The company's shares were up 2.4 percent at C$43.63 in afternoon trading.   Continued...