TELUS (T) Q3 2024 earnings summary

Executive summary

• Achieved industry-leading customer growth of 347,000, with strong net additions in mobile phones (130,000), connected devices (159,000), and fixed services (58,000), supported by a differentiated global growth strategy and exceptional customer experiences.

• Maintained postpaid mobile phone churn below 1% for the 11th consecutive year, with churn at 1.09% in Q3.

• Focused on margin-accretive customer expansion, cost efficiency, and operational effectiveness, driving sustainable, profitable growth.

• Continued strong performance in bundled product offerings, digital transformation, and product intensity, with over 3.2 products per household.

• Progressed on efficiency programs and product differentiation, supporting robust dividend growth.

Financial highlights

• Q3 2024 consolidated operating revenues reached $5.1 billion, up 1.8% year-over-year, driven by TTech segment growth and real estate monetization.

• Net income rose 88% year-over-year to $257 million; basic EPS up 111% to $0.19; adjusted net income up 11% to $413 million; adjusted EPS up 12% to $0.28.

• Free cash flow reached $561 million, up 58% year-over-year, driven by lower restructuring disbursements and CapEx.

• TTech EBITDA grew 5.6% year-over-year, with adjusted margin expanding by 110 basis points to 39%.

• Consolidated CapEx declined 13% year-over-year to $668 million; CapEx intensity at 13%, down 200 basis points.

Outlook and guidance

• 2024 TTech operating revenue growth now expected slightly below the lower end of the original 2–4% range, but above analyst consensus.

• TTech adjusted EBITDA growth (5.5–7.5%), consolidated CapEx (~$2.6B), and free cash flow (~$2.1–2.3B) targets remain unchanged.

• Restructuring expenses for 2024 anticipated at ~$450 million, up from prior guidance.

• Confident in continued strong cash flow generation, supported by EBITDA growth and moderating CapEx intensity.

• Targeting 7–10% annual dividend growth from 2023 through 2025.