Overview

* Telus ( TU ) Q3 revenue flat yr/yr at C$5.1 bln, with service revenue growth offset by declines in mobile equipment revenue

* Adjusted EPS for Q3 missed analyst expectations

* Net income for Q3 rises 68% yr/yr, driven by gain on debt purchase

* Free cash flow grows 8%, supporting dividend increase

Outlook

* Telus ( TU ) expects 2025 TTech revenue growth at lower end of original range

* Company maintains 2025 targets for TTech Adjusted EBITDA and capital expenditures

* Telus ( TU ) foresees sustained EBITDA expansion and robust free cash flow growth

Result Drivers

* CUSTOMER GROWTH - Achieved 288,000 net customer additions, driven by demand for core connectivity services and TELUS PureFibre expansion

* TELUS HEALTH GROWTH - Operating revenue and adjusted EBITDA grew by 18% and 24%, driven by global business acquisitions and growth in payor and provider solutions

* FLAT REVENUE - Overall revenue remained flat due to declines in mobile equipment revenue and other income, despite a 2% increase in service revenue

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss C$0.24 C$0.27

Adjusted (11

EPS Analysts

)

Q3 C$370

Adjusted mln

Net

Income

Q3 Net C$431

Income mln

Q3 C$1.86

Adjusted bln

EBITDA

Q3 Basic C$0.32

EPS

Q3 C$1.75

EBITDA bln

Q3 Free C$611

Cash mln

Flow

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 ( TU ) is C$23.00, about 10.2% above its November 6 closing price of C$20.66

Press Release:

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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.)