Stock Watch – Telus, with 1st quarter profit up 4.1% to $377m & revenue up 5% to $2.9B, is increasing its quarterly dividend by 11.8% to $0.38.
The wireless, TV and Internet services business of TELUS Corporation (TSE:T, Mkt cap 25.12B, P/E 20.18, Div/yield 0.38/3.75, EPS 2.01, Shares 619.94M) was the main driver behind the 4.1% annual increase in its January-March net profit, which reached $377 million in the period, the Canadian telco reported. This positive start to the year reflects the company’s commitment to investing in advanced broadband technology and providing exceptional customer experiences, outgoing president and CEO Darren Entwistle commented.
The result corresponds to quarterly net income of $0.61 per share, up from $0.56 in the first quarter of last year.
The Vancouver-based company exited the quarter with a 5% rise in revenues to $2.9 billion, buoyed by higher sales of both wireless and wireline data services.
Revenues generated from wireless services, in particular, advanced by 5.3% to $1.44 billion in the quarter thanks to growth in its subscriber base and the robust adoption of smartphones, which boosted data usage. The wireline business, which includes TV, Internet and phone services, generated $1.34 billion in revenues, a rise of 4.4%.
During the quarter, the telco added 48,000 net wireless post-paid customers, 27,000 TV subscribers and 21,000 users to its high-speed Internet service.
Telus said it was increasing its quarterly dividend by 11.8% to $0.38. The dividend is payable on July 2 to shareholders of record on June 10.
Entwistle stepped down as chief executive at the company’s annual shareholders’ meeting in early May to take on the role of executive chairman. He will be replaced by chief commercial officer Joe Natale.
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