Telus Corp. (TSX:T) had flat revenue and a 17% dip in profit to start 2010 but that was enough to impress analysts who expected B.C.’s largest public company to earn less.
With revenue of $2.38 billion remaining unchanged from a year ago, free cash flow more than doubled to $246 million.
Profit for the three months ending March 31 was $268 million, or $0.84 per share, compared with a profit of $322 million, or $1.01 per share, in 2009. Analysts had expected the telecom to generate $0.71 per share on revenue of $2.4 billion.
“Based on our positive financial outlook, we are increasing our dividend by 5.3%,” said CEO Darren Entwistle in a release. “This reflects our confidence in the prospect for earnings and cash flow growth in 2010 and beyond.”
Entwistle noted that his company added 51,000 wireless subscribers in the past quarter. Many of those new customers own smart phones such as Research in Motion (TSX:RIM)’s Blackberry devices and Apple Inc.’s (Nasdaq:AAPL) iPhone. Those customers have higher bills than standard cellular phone customers.
Telus share price range during the past week: between $37.53 and $38.21; 52-week high: $39.16; 52-week low: $29.68.
By Glen Korstrom