Canadian telecom firm Telus's Q2 revenue up 2%, sells stake in tower firm for C$1.26 bln

Telus

01/08/2025 11:59

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

Press Release: ID:nCNWdzHlka

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)