December 15, 2009 / 2:24 PM / 8 years ago

UPDATE 2-Telus sees '09 results at low end of forecasts

* Revenue now seen at around C$9.6 bln

* EPS guidance unchanged at C$3.10 to C$3.30

* 2010 targeted revenue of C$9.8 bln to C$10.1 bln

* 2010 EPS target of C$2.90 to C$3.30

* Shares flat on the Toronto Stock Exchange (Recasts with analyst comments, share price, details. Changes dateline from Toronto)

VANCOUVER, British Columbia, Dec 15 (Reuters) - Telus Corp (T.TO) expects its 2009 revenue and gross earnings to come in at the lower end of its guidance range, Canada’s No. 2 phone company said on Tuesday, but its shares were little moved by the news.

The Vancouver-headquartered company said the slightly weaker forecast was partly due to a C$30 million ($28.3 million) increase in fourth-quarter restructuring costs to C$190 million as it speeds up some initiatives it had originally planned for early 2010.

Telus now expects 2009 revenue of about C$9.6 billion and earnings before tax, depreciation and amortization of around C$3.475 billion. It didn’t change its 2009 earnings-per-share guidance of C$3.10 to C$3.30.

Looking further ahead, Telus forecast revenues increasing by between 2 percent and 5 percent next year to between C$9.8 billion and C$10.1 billion, a sign the recession-hit telecom market is showing some life, an analyst said.

“There is ample reason to believe that 2010 will at least see the beginnings of a recovery,” independent telecom analyst Carmi Levy said.

“That coupled with Telus’s recent launching of its next generation wireless network will combine to drive revenues higher,” he told Reuters.

Since upgrading its network, Telus has been able to sell Apple Inc’s (AAPL.O) iPhone since last month.

“We expect the significant on-strategy investments made in our wireless and wireline broadband networks will generate solid results in 2010,” Darren Entwistle, Telus’s president and chief executive, said in a statement.

For 2010, Telus targets earnings per share of between C$2.90 and C$3.30.

The company, along with rivals Rogers Communications Inc(RCIb.TO) and BCE Inc (BCE.TO), faces increased competition in 2010 from newcomers to the wireless industry, most notably from Globalive’s Wind Mobile brand.

Telus said it expects cash flow to increase by more than 40 percent next year as the recent heavy capital spending on its 3G network slows to historical levels of around C$1.7 billion.

Telus shares were down 1 Canadian cent at C$32.09 on the Toronto Stock Exchange on Tuesday afternoon.

$1=$1.06 Canadian Reporting by John McCrank and Nicole Mordant

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