TELUS Corporation’s Q4 Revenue Surges to $5.4 Billion, Exceeding Expectations

In the fourth quarter of 2024, TELUS Corporation (NYSE: TU) reported notable growth across its service segments, demonstrating a strong finish to the year. The company achieved a total of 328,000 net customer additions, marking its third consecutive year of surpassing one million mobility and fixed customer additions.

This growth was driven by TELUS’ extensive broadband networks and its comprehensive portfolio of bundled services. The company saw substantial increases in mobile phone and connected device net additions, alongside significant gains in fixed customer additions, including internet and TV services.

The TELUS technology solutions (TTech) segment reported a 4.1% increase in operating revenues, driven by growth in mobile equipment and service revenues, fixed data services, health services, and agriculture and consumer goods services. The TTech Adjusted EBITDA also grew by 7.0%, reflecting the company’s focus on cost efficiency and margin improvements. TELUS Health and TELUS Agriculture & Consumer Goods demonstrated robust performance, contributing to the overall financial strength of the company.

Despite these achievements, TELUS Digital experienced a slight decline in operating revenues, attributed to reduced revenue from certain technology and eCommerce clients. However, this was partially offset by favorable foreign currency impacts. Overall, TELUS’ consolidated operating revenues and other income increased by 3.5% year-over-year to $5.4 billion, underscoring the company’s strong operational execution and strategic investments.

TELUS’ Fourth-Quarter Results Beat Expectations

TELUS’ fourth-quarter results exceeded market expectations, showcasing the company’s ability to outperform in a competitive environment. The company reported basic earnings per share (EPS) of $0.24, surpassing the anticipated EPS of $0.23. This 20% increase in EPS from the previous year highlights TELUS’ effective cost management and strategic growth initiatives.

In terms of revenue, TELUS achieved $5.4 billion in consolidated operating revenues, slightly above the expected $5.24 billion. This growth was attributed to higher service revenue and gains from real estate and copper monetization within the TTech segment. However, TELUS Digital faced challenges with a 0.7% decrease in operating revenues, reflecting reduced service volumes from certain clients.

Comparatively, TELUS’ adjusted net income of $380 million represented an 11% increase over the same period last year, while adjusted basic EPS rose by 4.2% to $0.25. These figures indicate that, despite some challenges, TELUS effectively managed its operations to deliver higher-than-expected financial outcomes.

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TELUS Expects EBITDA Growth of 3% to 5% in 2025

Looking ahead to 2025, TELUS has set ambitious financial targets, aiming for TTech operating revenue growth of 2% to 4% and adjusted EBITDA growth of 3% to 5%. The company also plans to maintain consolidated capital expenditures at approximately $2.5 billion, with a focus on sustaining its industry-leading broadband networks and investing in strategic growth areas.

TELUS anticipates generating approximately $2.15 billion in consolidated free cash flow, supporting its balance sheet strength and ongoing deleveraging efforts. The company is committed to its dividend growth program, aiming to provide sustained returns to shareholders while pursuing opportunities for asset monetization and operational efficiency.

CEO Darren Entwistle emphasized TELUS’ strategic investments in broadband networks and its commitment to delivering long-term profitable growth. The company plans to leverage its unique asset base and customer-centric approach to achieve its 2025 financial targets, ensuring continued value creation for shareholders.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.