Canadian telecommunication company Telus Corp. (TU, T.TO) reported that its first-quarter net income was C$362 million, up from C$319 million in the same quarter last year. On a per share basis, net income for the quarter was C$0.55, up from C$0.49 last year. Earnings per share reflected the mid-April two-for-one stock split.
Operating revenues for the quarter rose to C$2.76 billion from C$2.63 billion in the prior year quarter. The increase in consolidated revenue was generated by greater than six per cent growth in wireless revenue and almost three per cent growth in wireline revenue.
The company said that the Board of Directors has declared a quarterly dividend of C$0.34 per share on the issued and outstanding Common shares and C$0.34 per share on the issued shares of the Company payable on 2 July 2013 to holders of record at the close of business on 10 June 2013. The new dividend represents a 3.5 cent or 11.5 per cent increase from the $0.305 quarterly dividend paid on July 3, 2012.
The company said it is providing shareholders with additional clarity on its intentions regarding our dividend growth program through to 2016. The company plans to continue with two dividend increases per year to 2016, normally announced in May and November, and is targeting the increase to also be in the range of about 10 per cent annually. Notwithstanding this, dividend decisions will continue to be dependent on earnings and free cash flow and subject to the Board's assessment and determination of financial situation and outlook on a quarterly basis, the company said.
The company noted that its board of Directors has authorized the company to file shortly with the Toronto Stock Exchange or TSX a request for approval to make a Normal Course Issuer Bid or NCIB. Subject to TSX approval, the NCIB program will enable Telus to purchase until December 31, 2013 up to a maximum of 15.0 million Telus common shares or approximately 2.3 per cent of the public float of common shares, for an aggregate purchase price of up to $500 million.
In addition, the company said it currently intends to renew its NCIB program in each of the next three years in order to permit purchases for up to $500 million in each calendar year. Future NCIBs will be dependent on earnings and free cash flow, subject to Board assessment and determination, and obtaining regulatory (including TSX) approvals.
Looking ahead, the firm said it still expects revenue in the range of C$11.4 to C$11.6 billion and earnings per share in the range of C$3.80 to C$4.20 for 2013.
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