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Telus Reports 68% Jump in Third Quarter Profits

8:00 am on November 6, 2006 | Category: Business, Corporate, Regulation, Telecom Services, Wireless

Canadian telecommunications giant, Telus Corp., announced late last week that its net income increased by 68% in the third quarter, mostly due to continued growth in the companyâ€™s wireless business.

Telus earned a net profit of C$319.6 million, or $0.92/share, in the three month period ending on September 30, compared to an income of $190.1 million for the same quarter last year. Overall revenue, meanwhile, increased by 7% to $2.2 billion.

This put the company handily above the expectations of financial analysts, which averaged in at $0.74/share on revenue of $2.15 billion.

These favorable results have inspired Telus to increase its quarterly dividend by $0.10 to $0.375 per share. The telecom giant had planned to convert into an income trust, but is currently reviewing its options due to a change in the federal governmentâ€™s corporate tax policy.

“In the event Telus does not pursue an income trust conversion, then the combination of the higher dividend and share repurchases at our year-to-date run rate, would result in a total return of capital to shareholders that approaches the level of cash distributions per unit previously announced in relation to the proposed income trust conversion,” said the corporationâ€™s Chief Financial Officer, Robert McFarlane.

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