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Monday, August 15, 2022

Canada’s Telus to divest stake in unit, posts lower profit

(Reuters) – Telus Corp (T.TO) (TU.N), one of Canada’s three big telecom providers, said it would sell a 35 percent stake in outsourcing service provider Telus International in a deal that values the unit at C$ 1.2 billion ($ 934.80 million).

The company said it would sell the business to Baring Private Equity Asia and use proceeds of about C$ 600 million to expand its wireless and wireline networks in Canada.

Telus on Monday entered an agreement with rival BCE Inc (BCE.TO) to buy one-third of Manitoba Telecom Services’ (MTS) (MBT.TO) post-paid wireless subscribers, after BCE completes its deal to buy MTS.

Telus posted a lower profit due to sagging demand in Alberta, Canada’s oil producing hub, and fierce competition for wireless customers.

Net income fell to C$ 378 million, or 64 Canadian cents per share, in the first quarter ended March 31, from C$ 415 million, or 68 Canadian cents per share, a year earlier.

Operating revenue rose to C$ 3.11 billion from C$ 3.03 billion.

(Reporting by Anet Josline Pinto in Bengaluru; Editing by Shounak Dasgupta)

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