TELUS Corporation Reports Industry-Best Total Mobile and Fixed Customer Growth
Strong Demand for Leading Services
TELUS Corporation has announced a total mobile and fixed customer growth of 347,000 in the third quarter of 2024. This growth has been primarily driven by the strong demand for their leading portfolio of services across Mobility and Fixed. The company reported robust net additions for both mobile phones and connected devices, with 130,000 and 159,000 new additions, respectively. TELUS also achieved an industry-leading postpaid mobile phone churn of 0.90 per cent.
Focus on Fixed Customer Net Additions
In addition to their mobile growth, TELUS saw strong third quarter fixed customer net additions of 58,000. This includes 34,000 new internet customers. The growth in fixed customers has been attributed to TELUS’s PureFibre network and premier portfolio of bundled services across Mobile and Home.
Financial Performance Highlights
TELUS reported an increase in Operating Revenue and Adjusted EBITDA, with growth rates of 1.9 per cent and 5.6 per cent, respectively. The company also achieved a strong margin expansion of 110 basis points to 39 per cent. This reflects a lower cost-to-serve, focus on driving higher margin per user, gains from copper and real estate monetization, and continued double-digit momentum in health services EBITDA contribution growth. Net income and earnings per share were higher by 88 per cent and 111 per cent, respectively, and on an adjusted basis increased by 11 and 12 per cent. Consolidated free cash flow was up 58 per cent.
Dividend Increase and 2024 Targets
TELUS announced an increase in their quarterly dividend to $0.4023, up 7.0 per cent over the same period last year. This represents a dividend yield of approximately 7.7 per cent. The company also updated their 2024 target for TTech operating revenue growth to slightly below the lower end of the original range. Targets for TTech Adjusted EBITDA, along with Consolidated targets for Capital Expenditures and Free cash flow, remain unchanged from the second quarter 2024 results.
Impact on Individuals
For consumers, TELUS’s strong performance in the third quarter of 2024 could lead to improved services, better network coverage, and potentially more competitive pricing in the telecommunications industry. Customers may experience enhanced connectivity and service reliability as a result of the company’s focus on network infrastructure and customer growth.
Global Implications
On a larger scale, TELUS’s continued growth and financial success can have positive effects on the economy and the telecommunications sector as a whole. The company’s performance may contribute to job creation, investment in technology and innovation, and overall industry growth. As a leading telecommunications provider, TELUS’s success sets a benchmark for other companies in the industry and influences trends in technology adoption and consumer preferences.
Conclusion
TELUS Corporation’s third quarter results for 2024 reflect strong customer growth, financial performance, and strategic initiatives that have positioned the company for continued success in the telecommunications industry. With a focus on innovation, network expansion, and customer satisfaction, TELUS is well-positioned to drive further growth and deliver value to its customers and shareholders in the future.
