Telus Corp. added a whopping 320,000 customers in its third quarter, an all-time quarterly record that helped drive higher revenue and profit and prompted the telecom giant to raise its dividend.
The Vancouver-based company said it added 135,000 net new mobile phone connections, 110,000 device connections for items such as tablets, wearables and connected cars, and additional customers for services like television, internet and security during the three months ended Sept. 30.
Telus also posted a low customer churn rate in its third quarter, which measures how many customers leave and is often referred to as "customer loyalty." The company said its churn rate for blended mobile phone, internet, TV and security services has fallen below one per cent so far this year.
Darren Entwistle, president and CEO of Telus, said the company will continue to leverage its "unmatched capabilities and competitive position" as the economic recovery progresses.
"Our robust performance reflects the effectiveness of our globally leading customer-centric culture and broadband networks," he told analysts during a conference call on Friday.
"With the ongoing operationalization of new spectrum and expansion of our national 5G network, Telus will continue to offer Canadians globally leading network reliability, globally leading speed, coverage, and low latency."
Meanwhile, he called GM Canada's decision to connect its next-generation vehicles to Telus's 5G network a "historic alliance," representing the first time the automaker has selected a domestic communications company to provide connected-vehicle services for Canadian customers.
RBC Dominion Securities Inc. analyst Drew McReynolds said Telus posted "slightly stronger-than-expected wireless and internet net additions."
Telus raised its dividend as it reported a third-quarter profit of $358 million, up from $321 million in the same quarter last year.
It will now pay a quarterly dividend of 32.74 cents per share, up from 31.12 cents per share, the company said.
The profit at Telus amounted to 25 cents per share for the quarter, up from 24 cents per share a year ago, while operating revenue and other income rose to $4.25 billion compared with $3.98 billion in the same quarter last year.
On an adjusted basis, Telus said it earned 29 cents per share in its latest quarter, up from 28 cents per share last year.
Analysts on average had expected an adjusted profit of 28 cents per share, according to estimates compiled by financial markets data firm Refinitiv.
This report by The Canadian Press was first published Nov. 5, 2021.
Companies in this story: (TSX:T)
Brett Bundale, The Canadian Press