* Q1 EPS C$1.01 versus 90 Canadian cents a year earlier
* Wireless subscriber additions drop 46 percent
* Cuts 2009 revenue, EPS outlook
TORONTO, May 7 (Reuters) - Telus Corp (T.TO), Canada’s No. 2 telephone company, posted a higher quarterly profit thanks to a tax adjustment, but it cut its 2009 forecasts and said its wireless business is being choked by the economic downturn.
Telus first warned in April that wireless subscriber net additions had plunged in the first three months of the year and that average revenue per subscriber would also be down.
That warning became official on Thursday, as Telus said it added 48,000 new wireless subscribers in the quarter -- down 46 percent from a year earlier. About 44,000 of those additions were postpaid, or longer-term, customers.
Average monthly revenue per wireless user fell 5.6 percent to C$58.39, Vancouver, British Columbia-based Telus said.
“Clearly, Telus’ wireless results do not meet the expectations we set late last year and are reflective of the weakening Canadian economy and competitive activity,” Chief Executive Darren Entwistle said in a statement.
Because of the soft economy, Telus said it is cutting its 2009 outlook. Wireline and wireless revenue is being ratcheted down by a total of about C$350 million, it said. Earnings per share forecasts have been cut to a range of between C$3.35 and C$3.65, from C$3.40 to C$3.70 previously.
Telus said it earned C$322 million ($275.2 million), or C$1.01 per share, in the three months ended March 31. That was up from a profit of C$292 million, or 90 Canadian cents a share, a year earlier.
However, the quarter’s results included a C$62 million favourable tax adjustment, compared to C$17 million a year earlier, the company said.
Revenue edged higher to C$2.37 billion from C$2.35 billion.
$1=$1.17 Canadian Reporting by Wojtek Dabrowski; editing by Dave Zimmerman