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UPDATE 1-Canada's Telus posts smaller-than-expected quarterly profit

Published 2017-08-11, 06:39 a/m
© Reuters.  UPDATE 1-Canada's Telus posts smaller-than-expected quarterly profit
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Aug 11 (Reuters) - Telus Corp T.TO, one of Canada's biggest telecom companies, reported a smaller-than-expected profit on Friday, as higher costs and weak growth in its wireline unit offset gains from its national wireless business.

Telus's wireline business added 17,000 internet connections and 5,000 television accounts in the second quarter ended June 30.

RBC Capital Markets analyst Drew McReynolds had expected 18,000 new internet connections and 8,000 more television sign-ups.

Operating expenses before depreciation and amortization rose by C$120 million ($94.3 million) to C$2.08 billion, the company said. Telus signed up 99,000 new postpaid wireless customers in the quarter compared with 61,000 a year earlier.

Average monthly wireless bill for the company was C$66.87, up 3.9 percent from a year earlier, as customers streamed more videos online and utilized data-intensive services.

Peers Rogers Communications Inc RCIb.TO and BCE Inc BCE.TO also reported strong growth in wireless subscribers and average bills. income attributable to Telus shareholders fell to C$379 million, or 64 Canadian cents per share, from C$416 million, or 70 Canadian cents per share, a year earlier.

On an adjusted basis, the company earned 68 Canadian cents per share, missing analysts' average expectations of 72 Canadian cents, as per Thomson Reuters I/B/E/S.

Operating revenue rose to C$3.27 billion from C$3.15 billion, the company said.

($1 = 1.2732 Canadian dollars)

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