TELUS publishes financial results for Q3 2009

Canadian telecom company TELUS Corporation (TSX:T) (TSX:T.A) (NYSE:TU) has reported its financial results for Q3 2009.

According to the company, its net income for the quarter was CAD280m and earnings per share (EPS) were CAD0.88, a decrease of 2% and 1%, respectively. Net income and EPS in the quarter included favourable income tax-related adjustments related to prior years' tax matters of approximately CAD14m net of tax or CAD0.04 per share, respectively.

Operating revenue was CAD2.4bn, a decrease of CAD39m from the previous year. Total customer connections of 11.9m were 326,000 higher than in 2008. Consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA), which amouted to CAD923m, decreased by 5%, primarily due to lower revenues, higher defined benefit pension plan expenses and higher restructuring costs from ongoing operating efficiency initiatives.

Free cash flow of CAD266m increased by CAD748m over the same period in 2008, primarily due to the prior year payment for advanced wireless services (AWS) spectrum licences. Capital expenditures of CAD558m for Q3 2009 reflect TELUS' ongoing wireline and wireless broadband build-out initiatives, the company said.

In addition, the company has updated its 2009 full year guidance and now expects 2009 revenue to be between CAD9.6bn and CAD9.7bn. The wireless revenue guidance range has been increased by CAD25m, while the wireline revenue guidance range has been lowered and tightened.

The company's board of directors has also declared a quarterly dividend of CAD0.475 per share on the issued and outstanding common shares and CAD0.475 per share on the issued and outstanding non-voting shares of the company, payable on 4 January 2010 to holders of record at the close of business on 11 December 2009.

(USD1=CAD1.07)

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