Canada's Telus Digital  beats Q2 revenue expectations

TELUS International (CDA)

01/08/2025 11:57

Overview

Telus Digital Q2 revenue grows 7% yr/yr, beating analyst expectations

Adjusted EPS for Q2 meets consensus estimates

Company faced significant goodwill impairment, impacting net loss

Outlook

Company reiterates full-year 2025 revenue growth of approximately 2% on organic basis

Telus International expects adjusted EBITDA of approximately $400 mln for 2025

Company anticipates adjusted diluted EPS of $0.32 for full-year 2025

Result Drivers

EXISTING CLIENT GROWTH - Revenue increased 7% yr/yr to $699 mln, driven by growth in services to existing clients, including TELUS and social media clients

AI & DATA SOLUTIONS - Expansion in AI & Data Solutions service line with key clients contributed to revenue growth, per Acting CEO Jason Macdonnell

COST OPTIMIZATION DEMAND - Strong demand for cost optimization and efficiencies from automation in Digital Solutions segment, according to President Tobias Dengel

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$699 mln
$663 mln (7 Analysts)
Q2 Adjusted EPS
Meet
$0.06
$0.06 (6 Analysts)
Q2 Adjusted EBITDA
$94 mln
Q2 Adjusted EBITDA Margin
13.4%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy."

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nBwc06N4Sa

(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.)