- Telus’s adjusted basic EPS for the first quarter stood at C$0.26, an improvement from the estimated C$0.23.
- Operating revenues and other income came in at C$4.93 billion, showing a slight decline of 0.6% year on year (y/y), slightly below the estimated C$5.02 billion.
- The company saw 45,000 new mobile phone customers join in the first quarter, a 4.3% decline y/y, but still better than the expected 39,270.
- Mobile churn rate for the period was 1.13% as compared to the previous year’s 0.88%.
- The adjusted EBITDA for the first quarter showed an increase of 4.3% y/y, amounting to C$1.86 billion, beating the estimate of C$1.84 billion.
- Adjusted net income for the period was C$390 million, up by 1% y/y, surpassing the estimate of C$349.2 million.
- The company spent C$725 million as capital expenditure, higher than the estimated C$684.4 million.
- Free cash flow was reported at C$396 million, marking a decrease of 26% y/y; the estimated figure stood at C$424 million.
- TELUS attributes its industry-leading growth to the strength of their operational execution and comprehensive product offerings across Mobile and Home.
- Despite top line challenges, TELUS International has marked significant progress with cost efficiency programs over the past ten months, positioning the business for further EBITDA growth and margin expansion.
- TELUS International also reported robust profitability and cash flows in a challenging global macroeconomic operating environment.
- The company realized $251 million in annualized synergies, moving towards its ultimate target of $427 million by the end of 2025.
- Overall analyst consensus for Telus sits at 11 buys, 6 holds and 0 sells.
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A look at TELUS Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
TELUS Corporation, a telecommunications giant in Canada, is poised for a steady long-term outlook based on the Smartkarma Smart Scores. With a solid Dividend score of 4 and a respectable Growth score of 3, TELUS offers investors a reliable source of income coupled with modest growth potential. While Value and Momentum are rated at 3 each, highlighting a decent valuation and market traction, the company shows room for improvement in terms of Resilience, scoring a 2. Overall, TELUS stands out for its stability and consistent performance in the ever-evolving communication industry.
Providing an array of voice, data, internet, and wireless services to both businesses and consumers, TELUS Corporation continues to solidify its position as a leading player in the Canadian telecommunications sector. With a balanced mix of financial strength, dividend attractiveness, and growth prospects, TELUS paints a compelling picture for investors seeking long-term stability. By focusing on enhancing its resilience factor, TELUS can further fortify its standing in the market and drive continued growth in the future.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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