UPDATE 1-Canada's Telus profit climbs on wireless, landline growth

Thu May 8, 2014 9:27am EDT

(Adds detail from earnings report)

TORONTO May 8 (Reuters) - Telus Corp, one of Canada's largest telecommunications companies, churned out another solid quarter of earnings growth and raised its dividend on wireless strength and further expansion of its Internet-based television product, Optik.

The Vancouver-based company 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 among others for wireless subscribers nationally.

Telus said Thursday it signed up 48,000 net contract wireless subscribers, who typically pay more to use high-end smartphones. By comparison, Bell and Rogers signed up almost 34,000 and just 2,000 such customers respectively, in the same period.

Telus said its average wireless customer paid C$61.24 a month for service, compared to Bell's C$57.90 and Rogers at C$57.63. Telus' numbers did not include customers of Public Mobile, a budget operator Telus recently acquired.

The company added 27,000 TV customers and 21,000 Internet subscribers in the quarter, helping its landline unit post an increase in revenue despite facing industry-wide decline in voice telephony demand.

Telus said its net income rose 4 percent to C$377 million, or 61 Canadian cents a share in the three months to the end of March, compared with C$362 million, or 56 cents a share, a year earlier.

Operating revenue rose 5 percent to C$2.90 billion. Excluding acquisition costs, Telus earned 62 cents a share.

Analysts had on average expected Telus to earn 61 Canadian cents a share on revenue of C$2.87 billion, according to Thomson Reuters I/B/E/S.

Telus said it planned to increase its dividend by 2 cents to 38 cents, payable on July 2 to shareholders as of June 10, as part of its long-term dividend growth plan. (Reporting by Alastair Sharp; Editing by Sofina Mirza-Reid)

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