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“Telecom Triumph: TELUS Dominates Q3 with Customer Boom, Strategic Moves, and 5G Ambitions – What’s Behind the Numbers?”

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  • Financial Performance: EPS of $0.18, Operating revenue of $4.99 billion, a 7.5% increase from Q3 2022.
  • Customer Growth: Record customer growth, adding 406,000 net customers.
  • Strategic Initiatives: Acquisition of LifeWorks and WillowTree for growth in health services and digital transformation.

TELUS Corporation, a leading telecommunications company in Canada, delivered a strong financial performance in the third quarter of 2023. The company met market expectations, with an EPS of $0.18, and recorded an operating revenue of $4.99 billion, reflecting a notable 7.5% increase compared to the same period in 2022. TELUS demonstrated record customer growth, adding 406,000 net customers and achieving the best Q3 mobile phone net additions in its history. The company’s strategic initiatives, such as the acquisition of LifeWorks and WillowTree, provide a strong foundation for further growth in the health services and digital transformation sectors. Additionally, TELUS emphasized its focus on 5G productization and monetization opportunities, aiming to leverage its advanced technology to drive revenue growth across various industries.

Q3 2023 Performance

TELUS’ financial health in the third quarter of 2023 saw a decrease in net income and adjusted net income, primarily influenced by higher restructuring and other costs. Despite this, the company showcased a 7.2% increase in operating revenue and a 5.5% growth in adjusted EBITDA. Capital expenditures decreased by 17% to $769 million, showcasing TELUS’ commitment to cost management. The service revenue category played a significant role in driving TELUS’ overall revenue growth, experiencing an 8.4% increase in the third quarter, amounting to $4.39 billion. Equipment revenues also saw a modest uptick, reaching $602 million, reflecting a 1.7% growth. These balanced revenue growth figures across different categories underscore TELUS’ ability to meet customer demands and provide a diverse range of offerings.

Key Metrics Q3 2023 Results
Total Customer Growth 406,000 (59,000 more than the previous year)
Mobile Phone Net Additions 160,000 (best third quarter on record)
Connected Device Net Additions 179,000 (record setting for the quarter)
Fixed Customer Net Additions 67,000 (including 37,000 internet customers)
Operating Revenue Growth 7.2% increase
Adjusted EBITDA Growth 5.5% increase
Free Cash Flow Growth 7.3% increase


Strategic Initiatives and Acquisitions with Focus on 5G Technology

TELUS’ emphasis on enhancing average margin per user (AMPU) paid off, as the company achieved its best-ever Q3 mobile phone net adds, driven by new-to-Canada loading and strong bundling. The company strategically tapped into lower average revenue per user (ARPU) profiles by attracting customers through digital-heavy brands like Public Mobile, minimizing costs associated with retail commissions and call center expenses. TELUS Health, a key segment for the company, showcased substantial growth in revenues, reaching $422 million in the third quarter and achieving a 20% increase in EBITDA post the LifeWorks acquisition. TELUS Health’s strategic initiatives in employer health solutions and mental health services demonstrate its commitment to improving healthcare and wellness across Canada. The integration of generative AI into TELUS Health’s operations aims to enhance data analytics capabilities and provide personalized and efficient healthcare services.

TELUS is positioning itself strategically in the 5G space, with a focus on productization and monetization opportunities. The company aims to leverage 5G technology for private and public sector applications, driven by new 5G-enabled products and services. The large volumes of data generated by 5G present opportunities for data analytics commercialization and monetization, enhancing customer service, product development, and reducing operational costs.

Exceptional Customer Growth and Loyalty

TELUS demonstrated exceptional execution strength, achieving its strongest quarter of telecom customer growth on record. The company added 406,000 net customers, driven by strong demand for bundled services, resulting in all-time record quarterly connected device net additions of 179,000. The company’s focus on maintaining high-quality customer growth and leading client loyalty reflects its commitment to customer satisfaction.

Collaborations and Partnerships

TELUS’ strategic collaborations and partnerships further enhance its competitiveness and market reach. Collaborations with Norton and GrainFox strengthen its cybersecurity and agricultural services respectively, opening new revenue streams and market opportunities. The company’s investments in environmental initiatives and healthcare services demonstrate its commitment to corporate responsibility and addressing social challenges.


Given TELUS Corporation’s strong financial performance, record customer growth, strategic initiatives, and focus on 5G productization and monetization, we assign an “Outperform” rating to its stock. TELUS’ ability to meet customer demands, its expansion in the health services sector, and its emphasis on digital transformation position the company favorably for sustained growth and profitability. Investors are advised to conduct thorough due diligence, considering both optimistic and pessimistic scenarios, to make informed decisions aligned with their risk tolerance and investment objectives.

Disclosure: We don’t hold any position in the stock and this is not a recommendation of any kind

as investing carries risk.

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