- Telus reported an adjusted basic earnings per share (EPS) of C$0.22, which fell short of the estimated C$0.23 and is a decrease from C$0.25 year-over-year (y/y).
- The company generated C$5.08 billion in operating revenues and other income, marking a 2.2% increase y/y, surpassing the expected C$5.03 billion.
- Mobile phone net additions were 55,000, representing a 46% decrease y/y, but still above the estimate of 50,293.
- Mobile churn rate slightly improved to 1.06% from 1.07% y/y.
- Adjusted EBITDA was C$1.81 billion, up 0.8% y/y, but below the expected C$1.82 billion.
- Adjusted net income was C$342 million, a 6.6% decline y/y, missing the estimate of C$369.8 million.
- Capital expenditure decreased by 1.9% y/y to C$678 million, close to the estimate of C$676.4 million.
- Free cash flow increased by 12% y/y to C$535 million.
- Total mobile and fixed customer growth reached 198,000, with mobile and connected device additions totaling 167,000 and fixed customer additions hitting 31,000.
- The company aims to improve its leverage ratio, targeting a net debt to EBITDA ratio of 3-times by 2027 and plans to remove the discount from its dividend reinvestment program.
- Over C$2.625 million was raised through sponsorships, donations, and contributions to support the TELUS Student Bursary fund.
- The results highlight benefits from cost efficiency, health margin improvements, and real estate and copper monetization gains.
- Current analyst ratings include 7 buys, 10 holds, and 1 sell.
A look at TELUS Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
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 leading telecommunications provider in Canada, is positioned well for the long term based on its Smartkarma Smart Scores. With a strong Dividend score of 5, investors can expect solid returns from TELUS’ dividend payouts. Additionally, the company’s Momentum score of 4 suggests positive traction in the market, indicating potential growth opportunities ahead. While TELUS receives moderate scores in Value, Growth, and Resilience, the overall outlook remains optimistic, driven by its robust dividend performance and promising momentum.
TELUS Corporation, a prominent player in the Canadian communications industry, offers a diverse range of services including voice, data, Internet, and wireless solutions. Despite receiving varying scores in different aspects like Value, Growth, and Resilience, TELUS excels with a top-tier Dividend score of 5. This emphasis on dividend distribution reflects the company’s commitment to rewarding investors over the long term. With a balanced assessment across different factors through the Smartkarma Smart Scores, TELUS remains a reliable investment choice in the telecommunications sector.
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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