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 ( TIXT ) 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/Mis Actual Consensu

s s

Estimate

Q2 Beat $699 mln $663 mln

Revenue (7

Analysts

)

Q2 Meet $0.06 $0.06 (6

Adjusted Analysts

EPS )

Q2 $94 mln

Adjusted

EBITDA

Q2 13.4%

Adjusted

EBITDA

Margin

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:

(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.)