Core Insights - The TELUS Digital survey indicates that AI assistants are becoming competitive with traditional apps as consumers increasingly prefer faster and smarter digital experiences [1] Group 1 - The survey highlights a significant shift in consumer behavior towards AI-driven solutions, suggesting a growing demand for enhanced digital interactions [1] - AI assistants are being recognized for their ability to streamline tasks and provide immediate responses, which aligns with consumer expectations for efficiency [1] - The findings suggest that companies may need to adapt their digital strategies to incorporate AI technologies to meet evolving consumer preferences [1]

Core Points - TELUS International (Cda) Inc. is urging shareholders to vote in favor of the proposed arrangement with TELUS Corporation [1] - The arrangement involves TELUS acquiring all outstanding multiple voting shares and subordinate voting shares of TELUS Digital not already owned by TELUS [1] - The acquisition price is set at US$4.50 per share, amounting to an aggregate consideration of US$539 million [1]

Core Viewpoint - TELUS Digital shareholders are encouraged to vote in favor of the proposed arrangement with TELUS Corporation, which has received strong endorsements from independent proxy advisory firms, indicating the transaction's attractiveness and fairness to minority shareholders [1][3][4]. Summary by Sections Transaction Details - The proposed arrangement offers a 51.8% premium to the unaffected share price, making it an attractive mixed-consideration offer for TELUS Digital shareholders [3]. - The arrangement requires approval from at least two-thirds (66%) of votes cast by holders of subordinate and multiple voting shares, as well as a simple majority from subordinate voting shareholders, excluding TELUS and its affiliates [8]. Proxy Advisory Support - Institutional Shareholder Services Inc. (ISS) has recommended that TELUS Digital shareholders vote in favor of the arrangement, highlighting the likelihood of no more compelling offers emerging in the near term [2][3]. - The special committee of independent directors unanimously supports the arrangement, asserting it is in the best interests of TELUS Digital and fair to minority shareholders [3][4]. Voting Information - The Special Meeting for shareholders is scheduled for October 27, 2025, and will be conducted virtually [5]. - Shareholders can vote online or via telephone, with detailed instructions provided in the management information circular [7]. Consideration Election - Shareholders can elect to receive either US$4.50 in cash, 0.273 of a common share of TELUS, or a combination of both, with a deadline for election set for October 22, 2025 [14][16]. - Those who do not make a valid election will be deemed to have chosen the combination consideration for their shares [16]. Company Overview - TELUS Digital focuses on creating digital transformations and enhancing customer experiences through a range of integrated capabilities, including AI solutions and customer experience management [17]. - The company emphasizes responsible technology development guided by its Humanity-in-the-Loop principles, aiming to address broader impacts of its work [18].

Core Points - TELUS Digital is facing potential delays in postal delivery of shareholder meeting materials due to a Canada Post labour strike, encouraging shareholders to access materials electronically [1][2] - The Special Meeting of shareholders is scheduled for October 27, 2025, to discuss a proposed arrangement with TELUS Corporation [1] - Shareholders must submit their election regarding preferred consideration by October 22, 2025, at 9:00 a.m. (Vancouver time) [7][9] Voting Process - Registered shareholders experiencing delays should contact Computershare Investor Services for individual control numbers to vote [3] - Beneficial shareholders should reach out to their brokers for assistance in obtaining control numbers and are encouraged to vote online or via telephone [4] - The proxy voting deadline is set for October 23, 2025, at 9:00 a.m. (Vancouver time) [3][4] Consideration Options - Shareholders can elect to receive either US$4.50 in cash, 0.273 of a common share of TELUS, or a combination of US$2.25 in cash and 0.136 of a TELUS share, subject to proration [8][11] - Those who do not make a valid election will be deemed to have chosen the Combination Consideration for all their shares [11] Company Overview - TELUS Digital focuses on creating digital transformations and enhancing customer experiences through various integrated capabilities, including AI and cloud solutions [18][19] - The company emphasizes responsible technology development, guided by principles that consider the broader impacts of its work [19]

Core Insights - TELUS Digital has launched Fuel iX Fortify, an application designed for automated AI red-teaming to assist enterprises in identifying vulnerabilities within Generative AI systems [1] Company Summary - TELUS Digital is focusing on enhancing cybersecurity measures for enterprises by introducing innovative solutions like Fuel iX Fortify [1] Industry Summary - The launch of Fuel iX Fortify highlights the growing importance of cybersecurity in the context of Generative AI, as companies seek to protect their systems from potential vulnerabilities [1]

Core Insights - The telecom sector has shown an 11% gain in 2024, but it has underperformed compared to the broader market, with the S&P 500 increasing by approximately 25% and the NASDAQ by nearly 30% [1] Industry Overview - The telecom industry has experienced periods of significant revenue growth, initially driven by wireline services and later by mobile connectivity and broadband internet. Outside these high-growth phases, the sector is generally characterized by steady but slower revenue growth, typically in the single digits, with global average dividend yields around 4% [2] - Future expectations for telecom companies include a focus on cost reductions, careful capital spending management, monetizing past investments, and leveraging mergers and acquisitions to enhance value. Companies with a growth focus may seek to accelerate revenue beyond traditional connectivity services [3] Methodology for Stock Selection - The stock selection process involved scanning Insider Monkey's database of nearly 1,000 hedge funds as of Q2 2025, identifying telecom sector stocks that pay dividends, and ranking them based on the number of hedge fund investors [5] Company Highlights - **TELUS Corporation (NYSE:TU)**: - Ranked among Canada's top telecom providers, TELUS benefits from a subscription-driven model that ensures consistent revenue. The company has a strong dividend growth record, having raised payouts for 21 consecutive years, currently offering a quarterly dividend of $0.4163 per share and a dividend yield of 7.66% as of September 24 [7][8] - TELUS is investing approximately $70 billion through 2029 to enhance its 5G and broadband networks, aiming to support customer growth and service quality [9] - The healthcare division, TELUS Health, is experiencing solid momentum due to strategic investments and innovative offerings [10] - **Ubiquiti Inc. (NYSE:UI)**: - A networking technology firm that serves clients in over 75 countries, Ubiquiti employs a community-driven marketing strategy rather than a large direct sales team. The company has maintained a solid dividend policy since 2018, increasing its quarterly dividend by 33.3% to $0.80 per share in August, resulting in a dividend yield of 0.50% as of September 24 [11][13] - **Iridium Communications Inc. (NASDAQ:IRDM)**: - Provides global satellite-based voice and data services through a network of 66 low Earth orbit satellites, focusing on government contracts and expanding into new areas like direct-to-device satellite connectivity. Iridium initiated its dividend policy in 2022, currently offering a quarterly dividend of $0.15 per share and a dividend yield of 3.44% as of September 24 [14][15][16]

Core Viewpoint - TELUS International has filed its management information circular in connection with a special meeting of shareholders to discuss a proposed arrangement with TELUS Corporation [1] Group 1 - The special meeting of shareholders is scheduled to be held virtually on October 27, 2025, at 9:00 a.m. Vancouver time [1] - The arrangement under consideration involves TELUS Corporation, which is listed on both TSX and NYSE [1]

TELUS FY Conference Summary Company Overview - **Company**: TELUS (NYSE: TU) - **Date of Conference**: September 09, 2025 Key Industry Insights - The telecommunications industry is facing pressure from shareholders regarding growth and debt levels, prompting companies like TELUS to reassess their strategies [3][4] - TELUS has maintained a consistent strategy focused on building superior networks, customer service, and relevant products [4][5] Core Strategies and Execution - **Network Development**: TELUS emphasizes the importance of fiber technology for internet services, having been an early adopter [4] - **Customer Service**: The company has led in customer service and churn management for over 15 years, leveraging AI and digitization to enhance service delivery [6][7] - **Product Relevance**: TELUS is focused on evolving its product offerings to remain relevant, particularly in health and technology sectors [6][7] Revenue Outlook - **Wireless Segment**: The wireless pricing environment is competitive but stable, with TELUS opting not to engage in unprofitable promotions [9][10][11] - **Wireline Segment**: Fixed data line revenue has shown a 3% growth, attributed to the bundling of services and strong traction in fiber and digital services [14][15] Capital Expenditure and Growth - TELUS plans to maintain a capital intensity of around 10%, with significant investments in Ontario and Quebec [19][20] - The company is exploring third-party partnerships for fiber deployment to manage costs effectively [21][22] Market Expansion - TELUS is expanding its footprint in Eastern Canada, focusing on small and medium-sized businesses (SMBs) and ensuring high service levels [17][18][26] - The company aims to avoid overbuilding and will assess market opportunities based on population density and service needs [23][24] Cost Management and Profitability - TELUS is implementing AI-driven tools to reduce churn and improve operational efficiency, which has already shown a reduction in churn rates [28][29] - The company is focused on maintaining a strong cost structure while expanding its service offerings [27][28] Financial Targets and Asset Monetization - TELUS aims to achieve a leverage ratio of 3 times by 2027 through operational execution, free cash flow generation, and monetization of non-core assets [33][34] - The company is in the early stages of monetizing its copper assets, with a target of $500 million in the medium term [37][39] Real Estate and Tower Agreements - TELUS is exploring monetization opportunities in real estate and has plans for a potential REIT by 2026 [41][42] - The company has monetized 49% of its tower assets and is open to further collaboration with other operators [43][44] Health Sector Growth - TELUS Health is experiencing double-digit growth, driven by synergies from acquisitions and international expansion [50][51] - The company is looking for strategic partnerships to enhance its health services and maximize valuation [52][53] TELUS Digital Integration - The integration of TELUS Digital aims to reduce costs and enhance AI capabilities within the organization [55][56] Conclusion - TELUS is strategically positioned to navigate industry challenges through a focus on network development, customer service, and innovative product offerings while managing costs and expanding its market presence. The company is optimistic about future growth in both its telecommunications and health sectors.

Core Insights - TELUS Corporation has reached a definitive agreement to acquire all outstanding shares of TELUS International, valuing each share at $4.50, totaling approximately $539 million [1][9] - The acquisition is expected to enhance TELUS's digital customer experience, accelerate AI capabilities, and drive SaaS transformation across its core businesses [3][9] - The deal has been unanimously approved by TELUS Digital's board and is supported by EQT, the largest minority shareholder [4][5] Financial Details - Shareholders will have three payment options: $4.50 in cash, 0.273 of a TELUS common share, or a combination of $2.25 in cash and 0.136 of a TELUS share, with no more than 25% of the total consideration paid in shares [2] - The agreed price represents a 52% premium over TELUS Digital's closing share price of $2.96 on June 11, 2025 [2] - The transaction values TELUS Digital at $2.9 billion and is subject to shareholder, court, and regulatory approvals [5] Strategic Implications - The acquisition aligns with TELUS's broader strategy to strengthen its position in digital transformation, AI, and global innovation across multiple industries [3][5] - TELUS Digital's operating revenues increased by 8% in Q2 2025, aided by a stronger U.S. dollar and euro, while adjusted EBITDA decreased by 25.8% year-over-year [6] - The integration aims to enhance TELUS's capabilities in fintech, gaming, media, and healthcare, ensuring substantial value creation for shareholders [3][5] Approval Process - A special shareholder meeting is scheduled for October 27, 2025, with TELUS Digital shareholders of record on September 12 eligible to vote [5] - If approved, the transaction is expected to close in Q4 2025, after which TELUS Digital's shares will be delisted [5][9]

Group 1 - The Conservative Income Portfolio targets high-value stocks with significant margins of safety and aims to reduce volatility through well-priced options [1] - The Enhanced Equity Income Solutions Portfolio is designed to generate yields of 7-9% while minimizing volatility [1] - TELUS (TSX: T:CA) was rated as a "hold" based on decent results but with factors that influenced the rating [1] Group 2 - Trapping Value is a team of analysts with over 40 years of combined experience in generating options income while focusing on capital preservation [2] - The Conservative Income Portfolio is run in partnership with Preferred Stock Trader and features two income-generating portfolios along with a bond ladder [2]