Canada's Telus Q3 service revenue falls on digital weakness

Telus

Yesterday 11:52

Overview
Canada telecom provider's Q3 service revenue declined 1% yr/yr as digital segment weakened
Adjusted EPS for Q3 fell 33% yr/yr; adjusted net income dropped 32%
Company launched C$900 mln annualized efficiency program, reaffirmed 2026 guidance

Outlook
Telus reaffirms full-year 2026 guidance issued with Q2 results
Company targets annualized cash savings of about C$900 mln exiting 2028 via efficiency program
Company expects capital expenditures of about C$2.6 bln and free cash flow of about C$1.8 bln for 2026

Result Drivers
DIGITAL SEGMENT WEAKNESS - TELUS said lower client service volumes from two hyperscale clients and ramp-downs in trust and safety and AI/data solutions led to declines in TELUS Digital revenue and EBITDA
ONE-TIME ITEMS - TELUS said prior-year real estate gains and other one-time items contributed to the decline in Adjusted EBITDA
HEALTH SEGMENT IMPAIRMENT - TELUS recognized a non-cash goodwill impairment of C$800 mln for TELUS Health due to updated growth expectations and market conditions amid active divestiture process

Company press release: ID:nPn2GcCzDa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted Net Income
 
C$251 mln
 
Q3 Net Loss
 
C$660 mln
 
Q3 Adjusted EBITDA
 
C$1.76 bln
 
Q3 EBITDA
 
C$1.55 bln
 
Q3 Free Cash Flow
 
C$396 mln
 

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(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.)