TELUS International (Cda) Inc. (NYSE: TIXT ) reports contracts with large corporations in Japan and the United States as well as the exposure to the growing AI industry. Recently, TIXT noted efforts to increase its sales capacity as well as newLike the common kingfisher or Alcedo Atthis searches for small fish, I research small, and medium cap companies in Europe, the United States, and South America. You can find a common kingfisher in my profile.With close to 14 years in the financial industry, I worked f ...

Industry Overview - Canadian telecommunications companies, including TELUS Corporation (TSX: T:CA), have faced significant pressure over the past year [1] - Telecom stocks are often considered bond proxies due to their stable dividend yields, but their share prices have been under pressure [1] Company Focus: TELUS Corporation - TELUS Corporation is part of the Canadian telecom sector, which has been experiencing challenges [1] - The company's stock performance has been impacted by broader industry pressures [1] Investment Philosophy - The author emphasizes investing in high-quality stocks and great businesses, particularly those led by disciplined capital allocators [1] - Preferred businesses are those that earn exceptional returns on capital and can compound invested capital over long periods [1]

Like the rest of Canada's telecom sector, Telus Corporation (TSX: T:CA )(NYSE: TU ) shares have sold off significantly over the last 18 months. This has caused many investors to worry about the security of its generous dividend. Can they dependNelson retired from the corporate world at 39 and now manages his own portfolio full-time. His focus is on under covered and unappreciated Canadian dividend stocks, excellent companies at solid values which happen to pay dividends.Analyst’s Disclosure: I/we have a ben ...

NEW YORK, Jan. 17, 2025 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against TELUS International (Cda) Inc. (“TELUS” or the “Company”) (NYSE:TIXT) on behalf of TELUS stockholders. Our investigation concerns whether TELUS has violated the federal securities laws and/or engaged in other unlawful business practices. Click here to participate in the action. On August 1, 2024, TELUS released its second quarter 2024 financi ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Telus (TU) , which belongs to the Zacks Diversified Communication Services industry.This telecommunications company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 18.01%.For the most recent quarter, Telus was expected to post earnings of $0.17 per sh ...

TELUS International (Cda) Inc. (NYSE: TIXT ) (TSX: TIXT:CA ), now branded as TELUS Digital, is Canada's largest-ever technology spinoff company. It has also been an unmitigated disaster in terms of shareholder value destruction. Shares 25 years+ in the financial/investment industry. Former Senior Managing Editor here at Seeking Alpha; the tail end of an ~11 year stint working for SA. Prior to this, I worked as a Treasury Manager for a large commodities firm, where I managed financial liquidity, currency ris ...

Group 1 - The article expresses a beneficial long position in the shares of TU and TLSNY, indicating a positive outlook on these companies [1] - The author emphasizes the importance of conducting due diligence and research prior to any investment, highlighting the risks associated with short-term trading and options trading [2] - The article clarifies that past performance is not indicative of future results, and no specific investment recommendations are provided [3] Group 2 - The author owns European/Scandinavian tickers of all European/Scandinavian companies mentioned, as well as Canadian tickers of Canadian stocks discussed [2] - There are specific withholding tax risks associated with investing in European/Non-US stocks, which investors should consider [2] - The article notes that the views expressed may not reflect those of Seeking Alpha as a whole, indicating a diversity of opinions among analysts [3]

TELUS Corporation (TU) reported third-quarter 2024 adjusted earnings per share (EPS) of C$0.28 (21 cents) compared with C$0.25 in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 23.5%.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Quarterly total operating revenues increased 1.8% year over year to C$5,099 million ($3,738 million) owing to higher service revenues in the TELUS technology solutions (TTech) segment offset by lower service revenues in t ...

[Financial Statements](index=3&type=section&id=Financial%20Statements) [Condensed Interim Consolidated Statements of Income and Other Comprehensive Income](index=3&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Income%20and%20Other%20Comprehensive%20Income) TELUS reported a significant increase in Q3 2024 Net Income to $257 million and a rise to $618 million for the nine-month period, with diluted EPS more than doubling Q3 2024 vs Q3 2023 Performance (Three Months Ended Sep 30) | Metric | 2024 (in millions CAD) | 2023 (in millions CAD) | Change | | :--- | :--- | :--- | :--- | | Operating Revenues and Other Income | 5,099 | 5,008 | +1.8% | | Operating Income | 788 | 517 | +52.4% | | Net Income | 257 | 137 | +87.6% | | Diluted EPS | $0.19 | $0.09 | +111.1% | Nine Months 2024 vs 2023 Performance (Nine Months Ended Sep 30) | Metric | 2024 (in millions CAD) | 2023 (in millions CAD) | Change | | :--- | :--- | :--- | :--- | | Operating Revenues and Other Income | 15,005 | 14,918 | +0.6% | | Operating Income | 2,045 | 1,698 | +20.4% | | Net Income | 618 | 557 | +10.9% | | Diluted EPS | $0.43 | $0.38 | +13.2% | - The increase in operating income was primarily due to a significant reduction in employee benefits expense, which decreased from **$1,633 million** in Q3 2023 to **$1,475 million** in Q3 2024[3](index=3&type=chunk) [Condensed Interim Consolidated Statements of Financial Position](index=4&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Financial%20Position) Total assets increased to $57.0 billion as of September 30, 2024, while total liabilities grew to $40.1 billion, leading to a slight decrease in owners' equity Financial Position Summary (as of Sep 30, 2024 vs Dec 31, 2023) | Account | Sep 30, 2024 (in millions CAD) | Dec 31, 2023 (in millions CAD) | | :--- | :--- | :--- | | **Total Assets** | **56,986** | **56,136** | | Total Current Assets | 6,124 | 6,313 | | Property, Plant and Equipment, net | 17,210 | 17,248 | | Intangible Assets, net | 20,526 | 19,721 | | Goodwill, net | 10,323 | 10,058 | | **Total Liabilities** | **40,059** | **38,834** | | Total Current Liabilities | 8,891 | 9,478 | | Long-term Debt | 25,387 | 23,355 | | **Total Owners' Equity** | **16,927** | **17,302** | [Condensed Interim Consolidated Statements of Changes in Owners' Equity](index=5&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Changes%20in%20Owners%27%20Equity) Total owners' equity decreased to $16.9 billion for the nine months ended September 30, 2024, primarily due to dividends outweighing net income and reinvestments Changes in Owners' Equity (Nine Months Ended Sep 30, 2024) | Item | Amount (in millions CAD) | | :--- | :--- | | Balance as at Jan 1, 2024 | 17,302 | | Net Income | 618 | | Other Comprehensive Income | 104 | | Dividends | (1,709) | | Dividends Reinvested & Optional Cash Payments | 508 | | Other Changes | 4 | | **Balance as at Sep 30, 2024** | **16,927** | [Condensed Interim Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to $3.8 billion, while investing cash outflow decreased to $3.0 billion, and financing activities shifted to a $791 million outflow Cash Flow Summary (Nine Months Ended Sep 30) | Activity | 2024 (in millions CAD) | 2023 (in millions CAD) | | :--- | :--- | :--- | | Cash provided by operating activities | 3,770 | 3,185 | | Cash used by investing activities | (3,029) | (4,032) | | Cash provided (used) by financing activities | (791) | 1,077 | | **Increase (decrease) in cash** | **(50)** | **230** | - Key investing activities included **$2.2 billion** in capital asset payments and **$620 million** for spectrum licenses. Financing activities were marked by **$5.1 billion** in new long-term debt issuance, offset by **$5.5 billion** in redemptions and repayments, and **$1.2 billion** in dividend payments[9](index=9&type=chunk) [Notes to Condensed Interim Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Interim%20Consolidated%20Financial%20Statements) [General Application](index=7&type=section&id=General%20Application) This section outlines fundamental accounting principles, recent policy developments, capital structure management, and financial instrument risk analysis [1. Condensed interim consolidated financial statements](index=8&type=section&id=1.%20Condensed%20interim%20consolidated%20financial%20statements) The financial statements are prepared under IFRS-IASB and IAS 34, authorized on November 8, 2024, and should be read with 2023 annual statements - The condensed interim consolidated financial statements follow the same accounting policies as the 2023 annual financial statements and are presented in Canadian dollars[16](index=16&type=chunk) [2. Accounting policy developments](index=8&type=section&id=2.%20Accounting%20policy%20developments) The company is assessing new accounting standards like IFRS 18 and has applied temporary relief for deferred taxes related to OECD's Pillar Two tax rules - The company is assessing the impact of IFRS 18, effective Jan 1, 2027, which will change the presentation of operating profit and management-defined performance measures, but is not expected to materially affect overall financial disclosure[20](index=20&type=chunk)[21](index=21&type=chunk)[23](index=23&type=chunk) - The company has adopted temporary relief from deferred income tax accounting for the OECD's Pillar Two model rules, which mandate a minimum **15%** income tax rate in every jurisdiction[20](index=20&type=chunk) [3. Capital structure financial policies](index=9&type=section&id=3.%20Capital%20structure%20financial%20policies) TELUS manages its capital structure using Net Debt to EBITDA and dividend payout ratios, with current metrics outside long-term objectives due to investments Key Financial Ratios | Ratio | Objective | As of Sep 30, 2024 | As of Sep 30, 2023 | | :--- | :--- | :--- | :--- | | Net debt to EBITDA | 2.20 – 2.70 | 3.83 | 3.82 | | Dividend payout ratio | 60% – 75% | 77% | 88% | - The Net Debt to EBITDA ratio remains outside the long-term objective range, which the company has permitted for long-term investment opportunities like spectrum auctions, with a goal to return to circa **2.70 times** in the medium term[28](index=28&type=chunk)[33](index=33&type=chunk) - Free cash flow for the twelve months ended September 30, 2024, was **$2,025 million**, an increase from **$1,492 million** in the prior year period[34](index=34&type=chunk) [4. Financial instruments](index=14&type=section&id=4.%20Financial%20instruments) This note details the company's management of credit, liquidity, and market risks through diverse customer bases, credit facilities, and derivative instruments - Credit risk is managed through a diverse customer base and credit evaluation programs. The allowance for doubtful accounts was **$127 million** as of September 30, 2024, up from **$117 million** at year-end 2023[38](index=38&type=chunk)[39](index=39&type=chunk)[41](index=41&type=chunk) - Liquidity risk is managed by maintaining a **$2.75 billion** syndicated credit facility, a commercial paper program, and in-effect shelf prospectuses in Canada and the U.S[49](index=49&type=chunk)[50](index=50&type=chunk) Market Risk Sensitivity (Nine Months Ended Sep 30, 2024) | Reasonably Possible Change | Impact on Net Income (in millions CAD) | Impact on OCI (in millions CAD) | | :--- | :--- | :--- | | 10% C$ appreciation vs US$ | (7) | 97 | | 25 basis point increase in Canadian interest rate | (4) | 77 | [Consolidated Results of Operations Focused](index=25&type=section&id=Consolidated%20Results%20of%20Operations%20Focused) This section details operational results, including segment performance, revenue, key expenses, income taxes, per-share amounts, dividends, and share-based compensation [5. Segment information](index=25&type=section&id=5.%20Segment%20information) The company operates two segments, TELUS technology solutions and TELUS digital experience, with detailed external revenues and Adjusted EBITDA reported for each - The TELUS technology solutions segment includes mobile, data, healthcare, and agriculture technology services[82](index=82&type=chunk) - The TELUS digital experience segment, comprised of TELUS International, provides digital customer experience and transformation solutions[83](index=83&type=chunk) Segment Performance (Nine Months Ended Sep 30, 2024 vs 2023) | Segment | External Revenue 2024 (CAD millions) | External Revenue 2023 (CAD millions) | Adjusted EBITDA 2024 (CAD millions) | Adjusted EBITDA 2023 (CAD millions) | | :--- | :--- | :--- | :--- | :--- | | TELUS technology solutions | 12,897 | 12,733 | 5,013 | 4,777 | | TELUS digital experience | 2,108 | 2,185 | 516 | 525 | [14. Share-based compensation](index=36&type=section&id=14.%20Share-based%20compensation) Share-based compensation expense increased to $148 million, utilizing restricted share units and share options with various vesting conditions Share-Based Compensation Expense (Nine Months Ended Sep 30) | Item | 2024 (in millions CAD) | 2023 (in millions CAD) | | :--- | :--- | :--- | | Restricted share units | 123 | 105 | | Employee share purchase plan | 25 | 33 | | Share option awards | 0 | 1 | | **Total** | **148** | **139** | - As of September 30, 2024, there were over **12 million** non-vested TELUS Corporation RSUs and over **20.8 million** non-vested TELUS International RSUs outstanding[115](index=115&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk) [16. Restructuring and other costs](index=44&type=section&id=16.%20Restructuring%20and%20other%20costs) Restructuring and other costs decreased to $425 million, driven by efficiency initiatives including personnel and real estate rationalization Restructuring and Other Costs (Nine Months Ended Sep 30) | Expense Category | 2024 (in millions CAD) | 2023 (in millions CAD) | | :--- | :--- | :--- | | Goods and services purchased | 166 | 139 | | Employee benefits expense | 259 | 438 | | **Total** | **425** | **577** | - Restructuring activities in 2024 included ongoing efficiency initiatives involving personnel costs and real estate rationalization to enhance long-term operating productivity and competitiveness[142](index=142&type=chunk) [Consolidated Financial Position Focused](index=45&type=section&id=Consolidated%20Financial%20Position%20Focused) This section details balance sheet components, including assets, liabilities, equity, and contingent liabilities, with analyses of property, intangibles, debt, and provisions [18. Intangible assets and goodwill](index=46&type=section&id=18.%20Intangible%20assets%20and%20goodwill) Net intangible assets and goodwill totaled $30.8 billion, driven by increased spectrum licenses and recent business acquisitions adding $203 million to goodwill - The company was the successful bidder for **1,430** spectrum licenses in the 3800 MHz band auction for a total price of **$620 million**, paid in 2024[153](index=153&type=chunk) - A goodwill impairment test was conducted for the TELUS digital experience cash-generating unit, with the recoverable amount exceeding its carrying amount by approximately **$800 million** (**16%**)[149](index=149&type=chunk) - During the nine-month period, the company acquired several complementary businesses for a total of **$310 million**, resulting in **$203 million** of goodwill[155](index=155&type=chunk)[156](index=156&type=chunk) [26. Long-term debt](index=59&type=section&id=26.%20Long-term%20debt) Total long-term debt reached $28.0 billion, primarily comprising senior notes, commercial paper, and a credit facility, supported by a $2.75 billion revolving credit facility Long-Term Debt Composition (as of Sep 30, 2024) | Category | Amount (in millions CAD) | | :--- | :--- | | TELUS Corporation senior notes | 21,783 | | TELUS Corporation commercial paper | 1,063 | | TELUS International (Cda) Inc. credit facility | 1,654 | | Lease liabilities | 2,703 | | Other | 797 | | **Total Long-term debt** | **28,000** | - The company has an unsecured commercial paper program of up to **$2.0 billion**, backstopped by its **$2.75 billion** revolving credit facility. As of September 30, 2024, **$1.1 billion** was outstanding[208](index=208&type=chunk) - The company must maintain financial covenants, including a leverage ratio not exceeding **4.25:1.00** and an operating cash flow to interest expense ratio not less than **2.00:1.00**[211](index=211&type=chunk) [29. Contingent liabilities](index=67&type=section&id=29.%20Contingent%20liabilities) The company faces pending claims and lawsuits, including class actions, but management believes any material financial impact is unlikely, except for enumerated cases - Certified class actions against the company include a system access fee class action from 2004 and a per-minute billing class action from 2008[240](index=240&type=chunk)[241](index=241&type=chunk) - The company has settled class actions in British Columbia and Alberta related to call set-up time charges, subject to court approval[243](index=243&type=chunk) - Management believes it has good defenses to these matters but acknowledges that a reliable estimate of exposure cannot be made due to various uncertainties[246](index=246&type=chunk) [Other](index=69&type=section&id=Other) This section covers related party transactions, including key management compensation, and provides supplementary cash flow details [30. Related party transactions](index=69&type=section&id=30.%20Related%20party%20transactions) Total compensation for key management personnel was $58 million, encompassing various benefits, with the company also engaging in transactions with pension plans and joint ventures Key Management Compensation (Nine Months Ended Sep 30) | Compensation Type | 2024 (in millions CAD) | 2023 (in millions CAD) | | :--- | :--- | :--- | | Short-term benefits | 13 | 16 | | Post-employment benefits | 8 | 9 | | Share-based compensation | 37 | 35 | | **Total** | **58** | **60** |

Core Insights - TELUS has successfully completed a significant data modernization project in collaboration with Google Cloud and Onix, transitioning to a unified cloud-based platform that enhances data access and usability while enabling advanced AI capabilities [1][2][3] Data Migration and Infrastructure - The project involved upgrading hundreds of enterprise-grade data pipelines and migrating over 14 petabytes of data from more than 100 legacy data sources to Google Cloud over three years, creating a central data hub [2][3] - The migration process eliminated over 30% of obsolete data from older systems, leading to reduced energy consumption and a smaller carbon footprint, alongside substantial cost savings [3] Business Operations and AI Development - Key business functions such as network operations, customer relationship management, billing, and marketing are now benefiting from improved data insights, resulting in faster issue resolution and more personalized customer interactions [3] - The modernization has facilitated the development of new AI-powered solutions, including Fuel iX, which assists companies in scaling their AI projects effectively [4][5] Strategic Partnerships and Future Outlook - The collaboration with Google Cloud is expected to unlock TELUS' data potential, enhancing operational efficiency and supporting ambitious AI initiatives [5] - Onix's expertise in data modernization and cloud infrastructure optimization has been instrumental in supporting TELUS' transformation [5]