Telus Reports Significant Growth in Q3 Net Income

Telus Corp. has reported a remarkable surge in its net income for the third quarter, surpassing expectations despite adding fewer new customers compared to last year.

Financial Highlights

During the quarter ending September 30, the telecommunications giant's net income attributable to common shares skyrocketed to $280 million, reflecting a staggering increase of 105.9% from the same period in 2023. This brought earnings per diluted share up to 19 cents, a significant rise from the nine cents reported a year prior.

Dividend Increase

In an exciting development for shareholders, Telus also announced a 7% increase in its dividend, signaling confidence in its financial performance.

Adjusted Net Income and Revenues

The company disclosed an adjusted net income of $413 million, an increase of 10.7% year-over-year from $373 million in the previous year. Telus' operating revenue and other income reached $5.1 billion, marking a 1.8% rise compared to the same quarter last year.

Customer Growth Trends

While Telus successfully added 347,000 net new customers, this figure represents a decline of about 14.5% from the previous year. This customer growth included 130,000 new mobile phone subscribers and 34,000 internet customers, which is a drop of 30,000 and 3,000 respectively year-over-year.

Mobile Phone Churn Rate

The telecommunications company noted a slight increase in its mobile phone churn rate—an indicator of subscriber cancellations—jumping to 1.09% from 1.03% in the same period last year. This included a postpaid mobile phone churn rate of 0.90%. The increase was attributed to a competitive market environment, where aggressive marketing and promotional pricing led some customers to switch providers. However, Telus emphasized that they are actively working to retain customers by providing top-notch service and network quality alongside attractive bundled offers.

Average Revenue Per User (ARPU) Trends

Average revenue per user (ARPU) for mobile phones stood at $58.85 this quarter, experiencing a decline of $2.09 or 3.4% from the previous year. This drop was largely due to an increase in customers opting for lower-priced base rate plans, as well as a reduction in revenues from overage and roaming charges. Interestingly, there has been a noticeable uptick in customer adoption of unlimited data plans and Canada-U.S. plans, which are designed to provide a more stable and higher monthly ARPU.

Looking Forward

As Telus continues to navigate a competitive landscape, its robust financial results, increased dividends, and strategic customer retention efforts position it well for future growth. With the telecommunications industry evolving rapidly, only time will tell how Telus adapts to ongoing challenges and opportunities.