Telus posts record net customer growth, 75% decline in profits

Telus Corp. reported a 75 per cent drop in profits for the three months ended Sept. 30 while also recording a record-breaking net customer additions. Friday, the Vancouver-based company posted its results for the third quarter of fiscal 2023. Net income fell to $137 million from $551 million in the same period the year before due to “higher efficiency-related restructuring and other costs, higher depreciation, amortization and financing costs.” In August Telus announced it was cutting 6,000 job. Telus International took 2,000 losses while its main business cut the remaining 4,000 positions. The company says it was offering packages for early retirement and voluntary departure. The company is expected to save $325 million with the cuts. Telus president and CEO Darren Entwistle told analysts that the effects of the restructuring will be felt in the next several quarters. Revenue increased by more than seven per cent to $5.01 billion from last year’s $4.67 billion. Telus achieved its strongest quarter of telecom customer growth to date, with a total of 406,000 net additions, marking a 17 per cent increase year-over-year. The growth was attributed to the strong demand for Telus' bundled services, which include an all-time record customer growth. The company now has a total of 18.9 million total telecom subscribers. Telus also experienced its strongest Q3 to date for mobile phone net additions, bringing in 160,000 customers or a 6.7 per cent increase from the year prior. Net additions for connected devices totalled 179,000, another record setting quarter for the company. That is a 44 per cent increase from last year’s 124,000 additions. Telus’ total connected device base now sits at 2.9 million. Net internet subscribers grew by 2.8 per cent from 36,000 to 37,000. Telus added 20,000 net television customers which is an 11 per cent increase from last year’s 18,000. Residential voice customers continue to decline with Telus losing 8,000 this year — that is 33 per cent more customers it lost compared to last year’s 6,000. The mobile average revenue per user (ARPU) dropped by $0.23, or 0.5 per cent, to $59.19. — Reporting by Jenna Cocullo at jcocullo@thewirereport.ca

Telus posts record net customer growth, 75% decline in profits

News | November 3, 2023

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Telus posts record net customer growth, 75% decline in profits

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