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Telus to Boost Dividend on Higher Profit

10:26 am on May 5, 2011 | Category: Business, Corporate, Wireless

Shares in Telus Corp., Western Canada’s leading telecommunications operator, were trading 2.64% higher today, after the company reported higher profits and announced plans to increase its dividend by approximately 10% in each of the next two years.

A jump in wireless data usage was largely responsible for a 19% increase in Telus’ profits, which came in at $328 million during the first quarter of 2011, up from $273 million in the first three months of last year. Revenue also increased, from $2.3 billion to $2.5 billion, with wireless data sales along showing a 44% rise.

Telus added 52,000 new postpaid wireless customers during the first quarter, but lost approximately 20,000 prepaid users during the same time. This seems to suggest that many occasional cell phone users with “pay-as-you-go” accounts are switching to monthly subscriptions as they find themselves using their mobile devices more often and for functions other than simple phone calls.

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