TELUS(US:TU)2023-02-09 12:25Financial Performance - TELUS Corporation reported operating revenues of $18,292 million for the year ended December 31, 2022, an increase of 8.6% from $16,838 million in 2021[20] - The net income for TELUS Corporation was $1,718 million in 2022, compared to $1,698 million in 2021, reflecting a growth of 1.2%[20] - Operating income decreased to $2,954 million in 2022 from $3,074 million in 2021, representing a decline of 3.9%[20] - Comprehensive income for the year ended December 31, 2022, was $1,797 million, compared to $2,349 million in 2021, reflecting a decrease of approximately 23.5%[21] - Net income attributable to common shares for 2022 was $1,615 million, down from $1,655 million in 2021, representing a decline of about 2.4%[21] - EBITDA excluding restructuring and other costs for 2022 was $6,646 million, compared to $6,476 million in 2021[91] - EBITDA for the 12-month period ended December 31, 2022, was $6,406 million, an increase from $6,290 million in 2021, reflecting a growth of 1.8%[95] - Free cash flow for the year ended December 31, 2022, was $1,274 million, up from $777 million in 2021, representing a significant increase of 63.9%[95] Expenses and Costs - The company's total operating expenses increased to $15,458 million in 2022, up from $14,184 million in 2021, marking a rise of 8.9%[20] - Employee benefits expense rose to $4,899 million in 2022, compared to $4,269 million in 2021, an increase of 14.7%[20] - Financing costs decreased to $632 million in 2022 from $796 million in 2021, a reduction of 20.6%[20] - The company reported a net employee defined benefit plans expense of $101 million in 2022, down from $113 million in 2021, indicating improved cost management[95] - Interest expense on long-term debt, excluding lease liabilities, increased to $779 million in 2022 from $683 million in 2021, a rise of 14.1%[160] Assets and Liabilities - Total assets as of December 31, 2022, increased to $54,046 million from $47,983 million in 2021, marking a growth of approximately 12.9%[22] - Long-term debt increased to $22,496 million in 2022, up from $17,925 million in 2021, representing a rise of about 25.5%[22] - Net debt as of December 31, 2022, was $24,152 million, an increase from $20,535 million in 2021[89] - The total undiscounted financial liabilities as of December 31, 2022, were $40,209 million, with long-term debt (excluding leases) at $33,664 million[117] Revenue Recognition - The company recognizes service revenues based on customer access to and usage of its telecommunications infrastructure, with mobile network and fixed data services being primary revenue sources[46] - Revenue from TELUS technology solutions includes mobile equipment and services, with a significant portion arising from digital customer experience solutions in the TELUS International segment[47] - The company recognizes revenues net of any value-added and sales taxes billed to customers concurrent with revenue-generating transactions[50] - The company recognized product revenues from mobile handsets and customer premises equipment upon delivery and acceptance by end-users[57] Acquisitions and Investments - The company acquired LifeWorks Inc. on September 1, 2022, which contributed total revenue of $350 million and a net loss of $5 million to the consolidated financial statements for the year ended December 31, 2022[5] - Cash payments for acquisitions in 2022 totaled $1,547 million, significantly higher than $468 million in 2021, marking a rise of 230.8%[26] - The company made material business acquisitions during the year ended December 31, 2022, enhancing its market position[29] Shareholder Information - Dividends paid to holders of common shares increased to $1,188 million in 2022 from $1,045 million in 2021, a rise of 13.7%[26] - The TELUS Corporation Common Share dividend payout ratio for 2022 was 95%, down from 140% in 2021[94] - The total dividends declared for the twelve-month period ended December 31, 2022, was $1,899 million, an increase from $1,711 million in 2021[168] Taxation - Current income tax expense for 2022 was $584 million, compared to $563 million in 2021, marking an increase of 3.7%[161] - The effective income tax rate for 2022 was 26.0%, compared to 25.5% in 2021, reflecting a slight increase[162] - The net deferred income tax liability as of December 31, 2022, is $4,418 million, an increase from $4,010 million in 2021[163] Employee Benefits and Compensation - The company’s obligations under employee defined benefit plans are actuarially determined and included as a component of financing costs[73] - Share-based compensation expense for 2022 was $201 million, compared to $244 million in 2021, with associated operating cash outflows of $79 million[170] - The number of non-vested restricted share units without market performance conditions decreased to 5,581,483 in 2022 from 5,848,469 in 2021[174] Risk Management - The company applies hedge accounting to manage currency risks associated with U.S. dollar-denominated future purchase commitments and debt repayments[43] - Currency risk management includes the use of foreign currency forward contracts to hedge 50% to 75% of U.S. dollar-denominated transactions[119] - The company is exposed to interest rate risk due to fluctuations in market interest rates affecting the fair values of temporary investments and long-term debt[121] Technology Solutions - The company is focused on expanding its technology solutions, including mobile and fixed voice and data telecommunications services, healthcare software, and data analytics-driven technologies[27] - TELUS technology solutions segment generated external revenues of $15,735 million in 2022, up from $14,948 million in 2021, representing a growth of 5.3%[146] - The digitally-led customer experiences segment, TELUS International, reported revenues of $2,677 million in 2022, compared to $2,310 million in 2021, marking an increase of 15.9%[146]