TELUS Corporation announced remarkable results for the third quarter of 2024, driven by significant growth in customer additions across mobile and fixed services, along with a strong financial performance and a dividend increase.
Financial Highlights
The TELUS technology solutions (TTech) segment saw a 1.9% rise in operating revenue and a 5.6% increase in adjusted EBITDA, due to reduced service costs, higher margins per user, and gains from real estate and copper monetization. The segment’s EBITDA margins grew by 110 basis points to 39%, supported by strong performance in health services.
TELUS’ net income rose by 88% year-over-year, while earnings per share (EPS) increased by 111%. On an adjusted basis, net income and EPS grew by 11% and 12%, respectively. Free cash flow increased significantly, up 58% from the prior year.
Doug French, TELUS’ Executive Vice President and CFO, emphasized the company’s strong financial position, which includes CAD 3.2 billion in available liquidity, an average long-term debt cost of 4.40%, and a net debt-to-EBITDA ratio of 3.83 times.
"In the third quarter, our team's dedication to operational excellence led to industry-leading customer growth and significant financial results, harnessing our premier asset portfolio and focused commitment to cost efficiency and effectiveness," said Darren Entwistle, President and CEO. "Our results demonstrate our ability to deliver sustainable profitable growth, anchored by our strategic emphasis on margin-accretive customer expansion, globally leading broadband networks, and a customer-centric culture.”
TELUS’ ongoing investments have further enhanced shareholder returns, with the recent 7% dividend increase marking the 27th consecutive rise since 2011. Over the past 20 years, TELUS has returned over CAD 26 billion to shareholders, demonstrating consistent value generation.
The company has adjusted its 2024 target for TTech operating revenue growth, now projected to be slightly below the initial range. However, TELUS’s targets for TTech adjusted EBITDA, capital expenditures, and free cash flow remain unchanged, reaffirming confidence in the company’s ongoing financial trajectory.
Customer Growth
The quarter saw TELUS achieving industry-best customer growth, adding 347,000 new mobile and fixed customers. This included 130,000 net additions in new mobile phone customers and 159,000 in connected devices, bolstered by a low postpaid mobile churn rate of 0.90%, one of the best in the industry. Fixed services also saw growth, adding 58,000 customers, including 34,000 new internet customers, supported by the TELUS PureFibre network and attractive bundled services for both mobile and home.
TELUS Health
The TELUS Health division achieved a 4% revenue boost, supported by increased digital health transactions, which rose 7.2% to 161.5 million in Q3. Virtual care services covered 6.5 million members, a notable 18% increase from the previous year, while total healthcare lives covered reached 76 million.
In September 2024, the company expanded its commitment to the TELUS Health for Good program to over CAD 16 million through 2027 and launched a new mobile health clinic. This initiative delivers essential primary care and harm reduction services directly to people experiencing homelessness across the B.C. Interior.
TELUS Digital
In the third-quarter of 2024, TELUS Digital reported stable financial performance, marking a positive step in its recovery. The segment’s expanding suite of advanced AI solutions is gaining traction, attracting new clients and earning increased market recognition as it advances next-generation technology applications.
TELUS Digital’s transformative, generative AI-powered tools, developed for use across all TELUS business lines, continue to strengthen go-to-market initiatives with both current and potential clients.
Read More:
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Generative AI: Transforming TELUS’ Productivity, Creativity and Strategy
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