UPDATE 1-Canada's Telus reports 10 pct profit rise on wireless, TV growth

Friday, 8 Nov 2013 | 9:06 AM ET

TORONTO, Nov 8 (Reuters) - Telus Corp, one of Canada's biggest telecom companies, posted a 10 percent rise in third-quarter profit on Friday, helped by strong growth in its wireless unit as well as steady customer additions for television and Internet service.

The Vancouver-based company said it had net income of C$356 million ($340.75 million), or 56 Canadian cents a share, compared with C$323 million, or 49 cents a share, a year before.

Operating revenue rose 3.6 percent to C$2.87 billion.

On an adjusted basis, excluding restructuring and tax-related costs, the company earned 58 Canadian cents a share.

Analysts had on average expected Telus to earn 54 Canadian cents a share on revenue of C$2.90 million, according to Thomson Reuters I/B/E/S.

Telus competes against cable company Shaw Communications Inc for television and Internet customers in Western Canada, and against Rogers Communications Inc and BCE Inc's Bell for wireless subscribers across the country.

Telus said it signed up 106,000 net contract wireless subscribers, who typically pay more to use high-end smartphones, during the quarter. Bell had previously said it added almost 103,000, while market leader Rogers said it added 64,000.

Rogers has some 9.5 million wireless customers, while Telus and Bell have around 7.8 million each.

Telus said its average wireless customer paid C$62.49 a month for service, compared to Bell's C$58.30 and Rogers at C$60.81.

Churn - the amount of customers leaving each month - hit a six-year low of 0.99 percent in the quarter, it said.

The company added 34,000 TV customers, as its Internet-based Optik service continues to eat into the market dominance of Shaw's cable offering. It added 19,000 broadband customers.

Telus, which is valued by investors for its dividend growth policy, also said it would increase its payout to 36 Canadian cents in January, compared to the 32 cents paid a year earlier.

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