Q1 2025 Telus Corp Earnings Call Transcript
Key Points
- TELUS Corp (TU) achieved industry-best total mobile and fixed customer growth with 218,000 net additions, marking the strongest first quarter on record.
- The company reported a 4% growth in TTech EBITDA, supported by strong mobile net additions and record Q1 connected device net additions.
- TELUS Health segment showed impressive momentum with revenue and EBITDA growth of 12% and 30%, respectively, driven by global expansion and product enhancements.
- The acquisition of Workplace Options expanded TELUS Health's reach to over 160 million lives covered globally, enhancing its comprehensive suite of health and well-being solutions.
- TELUS Corp (TU) announced a 7% dividend increase, reflecting its commitment to delivering superior value to shareholders and extending its dividend growth program through 2028.
- Mobile network revenue declined slightly due to a 3.7% decrease in ARPU, reflecting ongoing competitive pressures and lower roaming.
- The wireless service revenue showed a decline, with ARPU under pressure, indicating challenges in balancing volume versus pricing in the competitive market.
- Leverage remains elevated at 3.9 times, although TELUS Corp (TU) is committed to improving its leverage ratio to 3 times by 2027.
- The company faces challenges in scaling its IoT and machine-to-machine business, particularly in health and agriculture sectors.
- TELUS Corp (TU) continues to operate with a Dividend Reinvestment Plan (DRIP) discount, which may cause dilution to shareholders until it is fully removed by 2027.
Good day everyone. Welcome to the TELUS 2025 Q1 earnings conference call. I would like to introduce your speaker, Mr. Robert Mitchell. Please go ahead.
Hello, everyone, thank you for joining us today. Our first quarter 2025 results news release, MD&A, financial statements, and detailed supplemental investor information were posted to our website earlier this morning. On our call today, we'll begin with remarks by Darren and Doug. The Q&A portion will be joined by Zainul, Naveen, Jason, and Tobias.
Briefly, prepared remarks, slides, and answers to questions contain forward-looking statements. Actual results could vary from these statements. The assumptions on which they're based and the material risks that could cause them to differ are outlined in our public filings of Securities Commissions in Canada and the US, including our first quarter of 2025 and our annual 2024 MDNA.
With that, over to you, Darren.
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