Telus Corp. has reported significant growth in its third-quarter profits, achieving $493 million attributable to common shareholders. This marks an increase from $280 million in the same period last year. The company’s profit translates to 32 cents per share for the quarter ending September 30, up from 19 cents per share in 2022.
Financial Highlights
Key financial figures include:
- Operating Revenue: $5.11 billion, slightly up from $5.10 billion.
- Adjusted Earnings: 24 cents per share, down from 28 cents a year ago.
- Analyst Estimates: Expected adjusted profit was 26 cents per share.
Desjardins analyst Jerome Dubreuil commented on the results, noting that although the profits were below expectations, there were positive signs, specifically in customer growth.
Customer Growth and Market Performance
Telus experienced robust net additions in its internet customer base, gaining 40,000 new customers, an increase of 6,000 compared to last year. Additionally, the company added 82,000 net mobile subscribers, although this figure represents a decline of 48,000 from the same quarter last year.
The mobile phone churn rate, indicating subscribers who canceled services, rose to 1.11 percent from 1.09 percent a year ago. The postpaid mobile churn rate was reported at 0.91 percent. Telus attributed the increase in churn to heightened competitive pricing in the market. However, the company continues to focus on customer retention, network quality, and bundled services.
Revenue per User and Connected Devices
Telus reported an average revenue of $57.21 per mobile user in the third quarter, reflecting a decrease of $1.64, or 2.8 percent, compared to last year. This decline was largely due to customers opting for lower-priced rate plans and a reduction in roaming revenues, as more Canadians shift to unlimited data plans.
Moreover, the company saw a promising growth in connected devices, adding 169,000 new devices, an increase of 10,000 from the previous year. This growth has been fueled primarily by new customers in the transportation and connectivity sectors.
In a recent statement, Telus President and CEO Darren Entwistle emphasized the value of the company’s bundled services across mobile and home solutions, highlighting the ongoing rollout of Telus PureFibre connectivity to households and businesses throughout the nation.
