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Gold/Mining/Energy : T.TSE Telus Corp. -- Ignore unavailable to you. Want to Upgrade?

To: Robert Salasidis who wrote (77)	10/25/2001 1:45:32 PM
From: CIMA	Read Replies (1) \| Respond to of 107

Telus Q3 core earnings fall despite higher revenue By TERRY WEBER 09:15 EDT Thursday, October 25, 2001 Telus Corp. posted a sharp drop in third-quarter core earnings but also raised its full-year earnings guidance despite cautioning that the number of new wireless customers would be below earlier forecasts as a result of the sluggish economy. The company also cut its quarterly dividend, saying the move was in the best interest of shareholders. For the quarter ended Sept. 30, Telus said core earnings — before discontinued operations, amortization, restructuring and refinancing costs and goodwill — fell to $87-million or 29 cents a share, from $151-million or 64 cents in the same quarter a year earlier. Revenue for the period was $1.85-billion, up 19.6 per cent form last year's $1.55-billion. Analysts polled by Thomson Financial/First Call had been looking for earnings of 19 cents a share. Earnings before interest, taxes, depreciation and amortization rose 14.6 per cent to $699.3-million, from $610.3-million in last year's third quarter, on a strong showing from its wireless unit. Outlining its results, Telus said it now expects core earnings per share of 85 cents for the year, up from previous guidance of 75 cents a share. Revenue is expected to come in between $7.1-billion and $7.3-billion, unchanged from the company's past forecast. However, Telus also said it expects the number of new wireless customers to be between 400,000 and 440,000, compared to the firm's original forecast of 475,000 to 500,000. "The wireless net additions target for the year has been lowered given the more uncertain economic climate in Canada, our continued focus on revenue and EBITDA [earnings before interest, taxes, depreciation and amortization] growth and more aggressive competitive offerings than anticipated," Telus said in a statement. Telus president and chief executive Darren Entwistle also said the company's $1.2-billion in proceeds from the sale of non-core assets has further strengthened the firm's balance sheet. "We have again executed well against our clear strategies and despite an uncertain economy continue to put in place the building blocks for national growth in data, IP and wireless," he said. As well, Telus said it was cutting its quarterly dividend to 15 cents from 35 cents, saying the move is in the "best interests" of its shareholders. "This dividend decision will enable us to invest a greater proportion of internally generated funds into our national data, IP and wireless growth initiatives while maintaining a strong balance sheet," Mr. Entwistle said.