subscribers@ (Adds wireless customer numbers, churn rate, CEO quote)
Nov 9 (Reuters) - Canadian telecom company Telus Corp's third-quarter profit missed analysts' estimates as it spent heavily to expand its wireless and fiber-optic networks and add more subscribers in a fiercely competitive industry.
Vancouver-based Telus faces increasing competition from Shaw Communications, which has rolled out new internet and television products and is also building up a low-cost wireless business.
Telus said on Thursday its capital expenditure for wireline unit rose 19 percent in the quarter, mainly as it boosted its fiber-optic network. Total operating expenses rose 3.6 percent.
Shaw also reported last month an increase in costs that squeezed its margins.
Telus said it added about 115,000 new wireless postpaid customers in the quarter, compared with RBC Capital Markets' expectation of over 99,000.
The company also said churn rate, or the percentage of subscribers who discontinued services, fell to 0.86 percent from 0.94 percent a year earlier.
Average revenue per user (ARPU) for wireless services rose 3 percent in the quarter.
"Our capital investments have been instrumental in the success of our wireless and wireline growth strategy, which has now delivered 28 consecutive quarters of wireless ARPU growth and 20 successive quarters of wireline EBITDA growth," Chief Executive Darren Entwistle said.
Telus said it expects capital expenditure of about $2.85 billion for 2018, slightly lower than the estimated capital expenditure for 2017 of about $2.9 billion.
Excluding one-time items, the company reported a profit of 66 Canadian cents per share, missing the average analyst estimate of 69 Canadian cents per share, according to Thomson Reuters I/B/E/S.
Net income attributable to shareholders rose to C$367 million, or 62 Canadian cents per share, in the three months ended Sept. 30 from C$348 million, or 59 Canadian cents per share, a year earlier.
Operating revenue rose 4 percent to C$3.37 billion. (Reporting by Taenaz Shakir and Alastair Sharp; Editing by Anil D'Silva)