UPDATE 3-Telus profit drops, but wireless lifts revenue

* Q4 EPS 89 Canadian cents vs C$1.22 a year earlier

* Telus books fewer positive tax-related adjustments

* Restructuring costs rise by C$32 million

* Wireless helps revenue grow by 5.3 pct to C$2.45 billion

* Stock drops about 1 pct (Adds details, Telus executive comments, stock price)

By Wojtek Dabrowski

TORONTO, Feb 13 (Reuters) - Telus Corp (T.TO), Canada's No. 2 telephone company, said on Friday profit dropped as it booked fewer tax-related gains and spent more on restructuring, but revenue rose thanks to the company's wireless business, which stayed strong even as the economy slowed.

Shares of Telus receded about 1 percent after it reported a 29 percent decline in fourth-quarter earnings after recording favorable tax-related adjustments of C$32 million, compared with C$143 million a year earlier.

Restructuring costs increased by C$32 million. The company said it froze executive compensation, reduced travel and other expenses and slimmed managment layers.

But revenue rose 5.3 percent to C$2.45 billion, fueled by growth in wireless subscribers.

Wireless revenue per subscriber dropped along with mobile calling prices, and the number of new high-speed Internet customers signed up by Telus dropped 27 percent compared with the year-earlier.

Even so, revenue per subscriber would have fallen more sharply but more customers were picking up feature-rich smartphones, such as Research In Motion Ltd's (RIM.TO)(RIMM.O) BlackBerry, and using services like text-messaging and Facebook, which boosts data revenue.

Analyst Troy Crandall of MacDougall, MacDougall & MacTier in Montreal said the overall quarterly results were largely in line with his expectations.

Still, the weak economy may already have affected Telus' profitability, he added, as subscribers look to cut costs by reducing their monthly telecom bills.

"What you may see is that people, when they renew their contracts, may start to go to lower-price plans," he said. "But I don't necessarily think that people are willing to give up their wireless device."

Fourth-quarter earnings fell to C$285 million (US$231.7 million), or 89 Canadian cents a share, from C$400 million, or C$1.22, a year earlier.