TELUS Q3 Earnings Down Y/Y, Health & Digital Units Drive Revenues

Core Insights - TELUS Corporation reported third-quarter 2025 adjusted earnings per share (EPS) of C$0.24, a decrease from C$0.28 a year ago, with total operating revenues remaining almost flat at C$5,106 million [1][8] - The company experienced total mobile and fixed customer growth of 288,000 during the quarter, with significant contributions from mobile phone and Internet customer additions [2] Financial Performance - TELUS' operating revenues from contracts with customers were C$5,067 million, slightly up from C$5,042 million in the same period last year [1] - TTech revenues decreased 3% year over year to C$3,877 million, with mobile network revenues declining 1% to C$1,755 million due to lower mobile phone ARPU [5][9] - Fixed data service revenues increased 1% to C$1,185 million, driven by an expanding subscriber base, while fixed voice services revenues fell 7% to C$167 million [9][10] - Health services revenues surged 18% year over year to C$516 million, supported by acquisitions and strong digital health solutions [13] Strategic Developments - TELUS finalized a partnership with La Caisse to form Terrion, enhancing national wireless connectivity and accelerating deleveraging efforts [3] - The company acquired full ownership of TELUS Digital, aiming to drive AI-powered transformation and achieve approximately C$150 million in annual cash synergies [4] Cash Flow and Guidance - TELUS generated C$1,493 million of cash from operating activities, with free cash flow increasing 8% to C$611 million [18] - For 2025, TTech operating revenue is expected to be at the lower end of the 2%-4% target range, with adjusted EBITDA growth projected at 3-5% [20][21]