02:39 PM EDT, 10/04/2024 (MT Newswires) -- For Telus ( TU ), UBS believe the competitive backdrop was similar to recent quarters in both wireless and wireline. Looking for 0.2% consolidated revenue and 1.3% EBITDA growth in the third quarter vs. +0.6%/+5.5% in the second quarter This is driven by TTech EBITDA growth of 5%+ (helped by cost cuts) while Telus Digital sees EBITDA declines (after one-time benefits in recent quarters).

"We are updating our estimates to reflect slightly lower ARPU/wireless sub assumptions and softer T.I. (albeit in-line with street). Our full year estimates for 1.1% TTech revenue and 5.2% EBITDA growth (vs. 1.4%/5.5% prior) are slightly below the low-end of management's guidance," UBS notes.

In wireless, UBS expects Telus ( TU ) to add 135K total phone subs (150K prior; 160K a year ago) as loadings growth helps offset higher churn. ARPU expected to fall 3.4% amid sustained competition while wireless service revenues grow 0.9%, in-line with last quarter.

Forecasting 32K broadband net adds in wireline, down from 37K a year ago, largely driven by competition from Rogers/Shaw.

UBS believe T.I. continues to be impacted by macro factors. Looking for 6% contract revenue declines.

Price: 22.27, Change: -0.01, Percent Change: -0.04