Telus (TSX:T) reported lower net income and a new deal that will net the company $600 million in its first quarter report.
Net income fell from $415 million in the first quarter of 2015 to $378 million. The company attributed the drop to restructuring, the cost of investments it has been making in wireless infrastructure, as well as ongoing economic challenges in Canada, especially in Alberta.
The company also announced a new deal to sell 35% of its Telus International arm to Baring Private Equity Asia, worth $600 million.
Earlier this week, the company announced it would pick up wireless customers in Manitoba as part of an acquisition of Manitoba Telecom by Bell (TSX:BCE). As part of that deal, Bell will sell one-third of Manitoba Telecom’s existing contract wireless customers, and one third of dealer stores, to Telus.
Telus International is the company’s global business outsourcing arm. It offers outsourcing services for information technology, customer service, and business processing (tasks such as administering payroll) from several countries, including Romania, Bulgaria, the Philippines, Guatamala, El Salvador, the United Kingdom and the United States.
The company said it would invest the proceed from the sale of 35% in Telus International into further upgrades of broadband and wireless networks.
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