02:21 PM EDT, 07/02/2024 (MT Newswires) -- UBS believes Telus ( TU ) saw elevated competition in the second quarter across wireless and wireline but expects EBITDA growth helped by cost cuts. The brokerage is looking for 0.4% revenue and 3.5% EBITDA growth in the second quarter vs. -0.6%/+3.4% in the first quarter.

In wireless, Telus ( TU ) is expected to add 90K total phone subs (100K prior; 110K a yr ago) as healthy gross add growth (UBSe +13% yoy vs. +25% in Q1) helps offset elevated churn. ARPU is expected to fall 2% (1.3% prior; -1.8% in Q1), driven by competition and tougher roaming comps.

UBS is forecasting 30K broadband net adds, from 35K a year ago, largely driven by competition from Rogers/Shaw.

UBS expects Telus International will continue to be impacted by elongated sales cycles. Expecting 3% revenue decline and ~1% EBITDA growth in the second quarter, helped by cost cuts.

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