TELUS(US:TU)2024-11-08 20:06Financial Data and Key Metrics Changes - TELUS achieved a third quarter EBITDA growth of 5.6%, reflecting the success of ongoing efficiency programs [6][34] - Net consolidated income increased by 80% year-over-year, with basic EPS rising by 111% [41] - Free cash flow reached $561 million, up 58% year-over-year, driven by lower restructuring disbursements and reduced CapEx [43] Business Line Data and Key Metrics Changes - TELUS reported industry-leading mobile customer growth of 289,000 net additions, including 130,000 mobile phone net additions [7][9] - Fixed data service revenue grew by 1.9% year-over-year, supported by strong customer net additions of 67,000 [35] - TELUS Health revenue grew by 4%, with significant increases in sales bookings across key growth portfolios [22] Market Data and Key Metrics Changes - The company achieved total net additions of 347,000 customers, showcasing strong customer loyalty with postpaid mobile phone churn below 1% [5][9] - The blended mobile phone churn was 1.09%, slightly up due to competitive activity, but still represents an industry-best result [9] - TELUS Digital reported a revenue decline of 4.4% year-over-year, reflecting macroeconomic challenges [37] Company Strategy and Development Direction - TELUS is focused on margin-accretive customer expansion and enhancing product intensity through bundled offerings [4][11] - The company is investing in new product and platform development, particularly in smart home automation and 5G commercialization [53][84] - TELUS aims to leverage its fiber infrastructure for cost efficiency and revenue growth, targeting a capital intensity of around 10% [58][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to generate strong cash flow driven by ongoing EBITDA growth and moderating CapEx intensity [45] - The company anticipates significant opportunities in fiber and 5G, with a focus on cross-selling within the existing customer base [52][83] - Management highlighted the importance of digital transformation and AI capabilities in driving operational efficiency and customer experience [71][74] Other Important Information - TELUS announced a 7% year-over-year dividend increase, marking the 27th increase since initiating its multi-year dividend growth program in 2011 [29][30] - The company has returned over $26 billion to shareholders since 2004, including over $21 billion in dividends [30] Q&A Session Summary Question: What is the revenue growth potential for the industry? - Management highlighted significant opportunities in fiber and 5G, with potential for 5% EBITDA growth through cross-selling existing products [52][54] Question: Is there any reason TELUS shouldn't keep growing its dividend by 7%? - Management confirmed there is no reason not to continue the 7% dividend growth [60][62] Question: How does the real estate revenue recognition work? - Management explained that 50% of the gain from real estate sales is recognized as revenue, with low associated costs due to long-held land [63][66] Question: Is TELUS considering divestitures of non-core assets? - Management stated they are continuously evaluating non-core assets for monetization opportunities while focusing on strengthening their balance sheet [68] Question: What is the approach to wireless loading and prepaid trends? - Management noted consistent performance in their prepaid mix and emphasized lifecycle management of customers to optimize revenue growth [78][80]