Overview

• Telus Q3 revenue flat yr/yr at C$5.1 bln, with service revenue growth offset by declines in mobile equipment revenue

• Adjusted EPS for Q3 missed analyst expectations

• Net income for Q3 rises 68% yr/yr, driven by gain on debt purchase

• Free cash flow grows 8%, supporting dividend increase

Outlook

• Telus expects 2025 TTech revenue growth at lower end of original range

• Company maintains 2025 targets for TTech Adjusted EBITDA and capital expenditures

• Telus foresees sustained EBITDA expansion and robust free cash flow growth

Result Drivers

• CUSTOMER GROWTH - Achieved 288,000 net customer additions, driven by demand for core connectivity services and TELUS PureFibre expansion

• TELUS HEALTH GROWTH - Operating revenue and adjusted EBITDA grew by 18% and 24%, driven by global business acquisitions and growth in payor and provider solutions

• FLAT REVENUE - Overall revenue remained flat due to declines in mobile equipment revenue and other income, despite a 2% increase in service revenue

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the integrated telecommunications services peer group is "buy."

• Wall Street's median 12-month price target for Telus Corp is C$23.00, about 10.2% above its November 6 closing price of C$20.66

Press Release: ID:nPn4NSFbpa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)