Despite labor problems, Telus Mobility shows positive Q3 numbers
Despite being buffeted by serious labor problems in Q3 of the current financial year, Western Canada’s largest phone company Telus Mobility has managed to post commendable financial numbers. The company has announced its Q3 results which earmark a jump of over 20% in its profit with bottom line figures reaching $190.1 million as against $156.6 million registered in the corresponding period last year. Following this result, the company has enhanced the dividend outgo for its shareholders to 27.5% from 20% in the previous quarter.
Labor problems at Telus Mobility had begun in late July resulting in a strike, the company is claiming that good numbers have emanated from efficient handling of the turbulent phase through pooling in of external resources to sustain its services. Darren Entwistle, CEO, Telus commented, “Telus Mobility has clearly continued to execute on its profitable growth strategy and was largely unaffected by the strike.”
But all said and done, Telus’ Q3 results may have been more robust had there been no labor problems. The company is believed to have taken a hit of nearly $65 million to maintain its services during the strike period. Meanwhile, the earning per share at 53 cents is just marginally better than the market expectation of 52 cents. But compared to 43 cents per share in Q3 last year, it is showing a marked improvement.
Telus is now looking forward to expeditious end of labor dispute (the negotiation between the management and the union is believed to be in the final leg) to continue posting better results in the coming quarters. The company is expected to release its outlook for 2006 in the month of December.