Canadian telecom firm Telus's Q2 revenue up 2%, sells stake in tower firm for C$1.26 bln
Overview
Telus Q2 2025 operating revenue rises 2% yr/yr to C$5.1 bln
Adjusted EBITDA grows 1%, reflecting cost reduction and subscriber growth
Co sells 49.9% stake in newly formed wireless tower infrastructure operator Terrion for C$1.26 bln to reduce leverage
Outlook
Telus reaffirms 2025 revenue growth target of 2-4% for TTech
Company expects 2025 adjusted EBITDA growth of 3-5% for TTech
Telus projects $2.5 bln capital expenditures excluding real estate
Telus projects free cash flow of about C$2.15 bln for 2025
Company targets 3.55-times net debt to EBITDA ratio by end of 2025
Result Drivers
CUSTOMER GROWTH - Telus added 198,000 mobile and fixed customers, driven by demand for bundled services and PureFibre expansion
TELUS HEALTH - Segment achieved 16% revenue growth and 29% adjusted EBITDA growth, fueled by strategic investments and synergy optimization
COST REDUCTION - Adjusted EBITDA increased by 1%, supported by cost reduction efforts and subscriber growth
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Adjusted Net Income | C$342 mln | ||
Q2 Net Income | -C$245 mln | ||
Q2 Adjusted EBITDA | C$1.81 bln | ||
Q2 EBITDA | C$1.68 bln | ||
Q2 Free Cash Flow | C$535 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the integrated telecommunications services peer group is "buy."
Wall Street's median 12-month price target for Telus Corp is C$23.00, about 3% above its July 31 closing price of C$22.32
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago
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