Encouraging customers to disconnect from landlines is paying off for B.C.’s largest public company.
In its third quarter results released Friday, Telus Corp. (TSX:T) said continued growth in its wireless business offset a decline in landline connections.
The telecom giant reported third quarter revenue of $2.46 billion, a 1.8% increase over the same period in 2009.
Telus added 347,000 new customer connections to its base in the past year driven by a 6.8% increase in wireless subscribers and 94% growth in Telus TV.
President and CEO Darren Entwistle said the company’s investment in wired and wireless broadband infrastructure in recent years has generated the positive results.
“The consistent pursuit of our strategy is resulting in increasing growth in wireless and wireline data revenues, while capital expenditure levels decrease from last year’s peak investment phase,” Entwistle said. He added that cash flow increased 27% in the third quarter to $339 million.
Wireless revenue jumped 6.3% to $1.28 billion in the third quarter when compared with the same period in 2009.
“Telus added 22% more wireless customers this quarter compared to a year ago and added 53,000 TV and high-speed Internet subscribers, which was driven by the successful launch of the Optik TV,” added Entwistle.
Net income and earnings per share for the quarter were $247 million and $0.77 respectively, representing year-over-year decreases of 12% and 13%.
The company said the declines were due to an after-tax impact of $37 million or $0.12 per share, which was the result of an early partial redemption of its 2011 notes.
Telus has increased its quarterly dividend 5% to $0.525 per share.
At press time, the telecom’s shares were up $1.04 to $45.45.