Telus profit rises on wireless growth

Telus says fourth-quarter profits increased 4.9 per cent as it signed up more subscribers to its wireless and TV services, but fell short of overall analyst expectations.

The Vancouver-based telecommunications company reported that net income was $237 million, an increase from $226 million in the same three month period a year earlier.

For the quarter, Telus said it added 148,000 valuable postpaid subscribers in the period, who sign multi-year smartphone contracts. The increase in subscribershelped boost wireless data revenue by 43 per cent.

Bell, which released its quarterly results yesterday, gained 132,000 postpaid subscribers in the same period.

Telus said its cost of acquiring a new wireless customer rose 8.5 per cent to $421 as a result of increased competition and higher subsidies for smartphones.

In its TV operations, the company added 56,000 subscribers to its Optik IPTV service. The boost in TV customers also helped Telus add 24,000 broadband customers in Alberta and B.C.

"Reflecting success"

"Telus' fourth quarter and full year 2011 results reflect the success of our strategy of investing in our broadband technology and client experience across our wireless, TV and high-speed Internet services," said president and CEO Darren Entwistle in a release.

On an earnings per share basis, the results were equal to 76 cents per sharebelow average analyst expectations of 78 cents per share, according to a poll by Thomson Reuters but above 70 cents per share earned a year ago.

Revenue increased 5.3 per cent to $2.69 billion from $2.55 billion.