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MONTREAL - Telus Corp. (TSX:T) raised its quarterly dividend Thursday and reported an increase in first-quarter profits from a year ago, helped by higher revenue.
The Vancouver-based telecommunications company said it will pay a quarterly dividend of 34 cents, up from 32 cents and also announced it will spend up to $500 million to buy back up to 15 million of its shares this year.
The company has set a target of semi-annual increases of its dividend of around 10 per cent annually.
Telus chief executive Darren Entwistle said the company also plans to continue the share purchase plan for up to $500 million in shares for each of the next three calendar years.
The increased dividend and share buy-back came as the company reported a first-quarter profit of $362 million or 56 cents per share, up from $319 million or 49 cents per share a year ago.
Revenue was $2.76 billion, up from $2.63 billion in the first quarter of 2012.
The company's wireless business saw revenue increase by $89 million to $1.5 billion in the first quarter of 2013, compared with a year ago, helped by growth in data services and subscribers.
Total wireless subscribers were up 4.6 per cent from a year ago to 7.7 million.
Meanwhile, Telus's wireline business saw revenue grow by $36 million to $1.3 billion for the most recent quarter compared with a year ago, boosted by increased data service revenue, partially offset by lower legacy voice revenues.