Telus Posts Huge Increase in Second-Quarter Profits

Telecom News Editorials Reports Glossary

1:15 pm on August 4, 2006 | Category: Business, Telecom Services, Corporate

Continued growth in broadband and wireless sales have caused profits to shoot up at western Canada’s largest telecom provider, Telus Corp.

The Vancouver-based company’s profits nearly doubled to C$356.6 million, or $1.02/share in the second quarter, compared to just $189.5 million ($0.52/share) in the same period last year, and $0.66/share predicted by a survey of analysts.

Earnings included a $107 million boost due to favorable tax adjustments, as well as $12 million in investent tax credits.

Total revenue, meanwhile was up 6% over last year, reaching $2.14 billion in the second quarter.
These overwhelmingly favorable results have caused Telus to increase its revenue and earnings forecasts for the rest of 2006. The company now predicts that it will generate a total of $2.90 to $3.10 per share in profit this year, on sales of $8.625 to $8.725 billion.