Vancouver-based telecom giant Telus Corp. (TSX:T; NYSE:TU) has forecast a 4% increase in its annual earnings and a 4% to 6% increase in revenue in 2009, despite the global economic downturn.
With continued growth in its wireless and data divisions, Telus projects an increase in its consolidated revenue of between $375 million and $625 million next year and a 4% rise in EBITDA in 2009. Earnings will be moderated by increased pension expenses due to the sharp decline in equity markets this year. It targets the company's per-share earnings between $3.40 and $3.70.
A strong balance sheet and cash flow have enabled Telus to raise its dividend by 5.6% to $0.475 per share starting January 2, 2009.
The company also plans to renew its normal course issuer bid to allow for a possible repurchasing of up to eight million shares over the next 12 months.
Telus is expecting an 8% to 10% increase in wireless revenue from continued growth in wireless subscribers, increased smartphone adoption and higher wireless data adoption and use. Earnings from the wireless division are expected to increase between 5% and 9% in 2009.
Wireline revenue is expected to grow up to 3% next year, driven primarily by higher revenue from its broadband data services. Earnings, however, are expected to drop between 2% and 6% due to increased pension expenses and other costs.
Telus' share price range during the past week: between $34.03 and $35.80; 52-week high: $49.90; 52-week low: $33.10.