Telus Stock Price, News & Analysis

TELUS Digital (NYSE/TSX: TIXT) reported Q1 2025 results with revenue of $670 million, up 2% year-over-year. The company posted a net loss of $25 million ($0.09 per share) compared to net income of $28 million in Q1 2024. Key metrics include: Financial Highlights: - Adjusted EBITDA: $90M (down from $153M in Q1 2024) - Adjusted Net Income: $17M (down from $65M) - Free Cash Flow: $41M (down from $107M) - Team member count: 78,424 (up 5% YoY) Management reiterated its 2025 outlook, projecting approximately 2% organic revenue growth, Adjusted EBITDA of $400M, and Adjusted Diluted EPS of $0.32. Growth was primarily driven by AI & Data Solutions and Digital Solutions, with increased business from existing clients including TELUS and a leading social media client.

TELUS (TU) reported strong Q1 2025 results with industry-leading customer growth of 218,000, up 9,000 YoY. The company achieved consolidated revenue growth of 3% to $5.1 billion and net income of $301 million, up 115% YoY. TTech segment, including TELUS Health, saw revenue and Adjusted EBITDA growth of 3% and 4% respectively. TELUS Health revenue grew 12% with global lives covered increasing 7% to 76.5 million. Free cash flow increased 22% and cash from operations rose 13%. The company announced a 7% dividend increase to $0.4163 and extended its dividend growth program targeting 3-8% annual growth for 2026-2028. TELUS reaffirmed its 2025 targets, including TTech revenue growth of 2-4%, Adjusted EBITDA growth of 3-5%, and free cash flow of approximately $2.15 billion.

TELUS becomes the first Canadian company to join the Hiroshima AI Process (HAIP) Reporting Framework, aligning with the G7 AI Code of Conduct. As one of 20 global companies participating in the OECD Pilot, TELUS is contributing to worldwide efforts in developing trustworthy AI systems.

Key developments include:

• Partnership with NVIDIA to launch Sovereign AI Factories in Canada
• Implementation of comprehensive AI risk management practices
• First company globally to receive Privacy by Design certification (ISO 31700-1)
• Development of sustainable AI operations in Rimouski, Quebec, using 99% renewable energy

The company's Chief Data & Trust Officer, Pam Snively, emphasizes TELUS's commitment to responsible AI adoption that prioritizes fairness, safety, and transparency. TELUS will participate in upcoming B7 discussions, contributing to G7 meetings later this year, furthering its role in shaping ethical AI practices globally.

TELUS (TU) has announced a $1.6 billion junior subordinated note offering in two series, both maturing on July 21, 2055. The offering consists of:

- Series CAR: 6.25% fixed-to-fixed rate notes priced at $99.965 per $100, with initial yield of 6.25% until July 21, 2030, resetting every five years thereafter at the Government of Canada rate plus 3.482% (minimum 6.25%)

- Series CAS: 6.75% fixed-to-fixed rate notes priced at $99.959 per $100, with initial yield of 6.75% until July 21, 2035, resetting every five years thereafter at the Government of Canada rate plus 3.609% (minimum 6.75%)

The offering, led by RBC Dominion Securities, Scotia Capital, and TD Securities, is expected to close around April 21, 2025. Proceeds will be used for debt repayment and general corporate purposes. Credit rating agencies have assigned 50% equity credit to these notes.

TELUS (TU) is exploring the potential sale of a minority stake in its wireless tower portfolio as part of its balance sheet strengthening initiatives. The company has been working with advisors to evaluate this monetization opportunity, with 100% of potential proceeds earmarked for debt reduction.

CEO Darren Entwistle indicated that the tower infrastructure monetization, if executed within desired economic parameters, would enhance network operations efficiency. CFO Doug French highlighted that this initiative would provide financial flexibility and accelerate the company's de-leveraging goals, including achieving a 3.0x net debt to EBITDA ratio by 2027. The company also plans to phase out its discounted dividend reinvestment program during this period.

This tower monetization represents one of several opportunities being considered in TELUS' de-leveraging strategy, though no final decisions have been made yet.

TELUS and MCE Systems are expanding their partnership following a successful generative AI pilot in Mobile Klinik's Device Checkup mobile app. The pilot, conducted in late fall 2024, showed significant improvements in customer engagement and retail conversion rates.

The AI-enhanced solution, built on Amazon Web Services (AWS), delivered impressive results:

• 4x increase in chatbot-guided user journey engagement
• 3x increase in user actioning of promotional offers
• 1.5x increase in store finder tool usage

The implementation leverages customer device history and diagnostic tests with real-time conversational interaction to drive personalized offers. The solution was deployed in just three months using Amazon's Bedrock platform, addressing the telecommunications industry's challenge where 45% of carriers are investing in AI technology despite integration challenges and ROI concerns.

TELUS (TU) has announced its latest quarterly dividend declaration. The Board of Directors has declared a quarterly dividend of CAD $0.4023 per share on the company's outstanding Common shares. The dividend will be payable on April 1, 2025, to shareholders who are recorded as holders at the close of business on March 11, 2025.

TELUS Digital (NYSE/TSX: TIXT) reported Q4 2024 and full-year results, showing stable performance. Q4 revenue was $691 million, flat year-over-year, while full-year revenue decreased 2% to $2,658 million. The company reported a Q4 net loss of $54 million ($(0.20) per share) compared to net income of $38 million ($0.10 per share) in Q4 2023.

Key operational highlights include adding 55 net new clients in 2024, with 13 in Q4, including two large American retailers. The company expanded business with 162 existing clients and saw momentum in AI Data Solutions. Adjusted EBITDA for Q4 was $103 million (14.9% margin) versus $184 million (26.6% margin) in Q4 2023.

For 2025 outlook, TELUS Digital projects approximately 2% organic revenue growth, Adjusted EBITDA of about $400 million, and Adjusted Diluted EPS of approximately $0.32.

TELUS reported strong Q4 2024 results with consolidated operating revenues increasing 3.5% to $5.4 billion. The company achieved industry-leading customer growth of 328,000 in Q4, including 70,000 mobile phone and 194,000 connected device additions.

TTech segment showed robust performance with Operating Revenues up 4.1% and Adjusted EBITDA growth of 7.0%. The company's health services demonstrated strong momentum with 10% revenue growth and 20% Adjusted EBITDA growth. TELUS Health now covers over 76 million lives, up 9.6% year-over-year.

For 2025, TELUS is targeting TTech Operating Revenues and Adjusted EBITDA growth of 2-4% and 3-5% respectively, with Consolidated Free Cash Flow projected at $2.15 billion. The company plans to reduce capital expenditures to approximately $2.5 billion and aims to achieve a net debt to EBITDA ratio of about 3-times by 2027.