TELUS (T) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 customer net additions of 332,000, up 13% year-over-year, with strong growth in both mobile and fixed segments and industry-leading postpaid mobile phone churn of 0.89%.

• EBITDA grew 5.6% year-over-year to $1.8 billion, with margin expansion of 170 basis points, driven by cost efficiency programs.

• Net income rose 13% to $221 million, with adjusted net income and EPS up 34% and 32%, respectively.

• Continued focus on profitable growth, digital transformation, and product innovation across all business lines.

• Returned capital to shareholders through a leading dividend growth program and sustained free cash flow generation.

Financial highlights

• Consolidated operating revenues were $4.9 billion, down 0.7% year-over-year, while adjusted EBITDA increased by 5.6%.

• Free cash flow reached $478 million, up 71% year-over-year, driven by lower CapEx and higher EBITDA.

• CapEx declined by 14% to $691 million, with capital intensity at 13%, down 300 bps from Q2 last year.

• Dividend per share increased 7% to $0.3891, consistent with the multi-year dividend growth program.

• TTech operating revenues were $4.2 billion, up 0.5% year-over-year; adjusted EBITDA was $1.6 billion, up 5.1%.

Outlook and guidance

• 2024 TTech operating revenue and adjusted EBITDA growth expected at the lower end of original target ranges due to competitive pressures.

• Consolidated free cash flow guidance updated to approximately $2.1 billion, reflecting TELUS Digital's revised outlook.

• Annual CapEx target remains at approximately $2.6 billion; leverage ratio expected to improve as EBITDA grows and CapEx moderates.