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TELUS Enhances Wellness With GameRx Launch: Will TU Stock Benefit?
ZACKSยท 2025-04-14 12:40
Core Insights - TELUS Corporation has launched GameRx, an interactive wellness resource aimed at enhancing Canadians' mental, emotional, and physical well-being through gaming [1] - The company is leveraging its robust infrastructure, including PureFibre Internet and a 5G network, to support gamers with reliable connectivity [2] - TELUS Health emphasizes the positive aspects of gaming, with a survey indicating that over one-third of Canadians use gaming to cope with challenges, and nearly half view it as a means to improve health and foster community [3] GameRx Initiative - GameRx curates video game recommendations based on specific wellness goals such as stress relief, focus, loneliness, mobility, or memory [4] - The platform is initially available in English, with French support expected by April 2025, broadening its accessibility [5] - This initiative is anticipated to gain traction among Canadians, potentially enhancing TELUS's revenue and share price [6] Health Services Growth - TELUS's health services unit is experiencing strong revenue growth due to acquisitions in employee and family support programs, organic growth, and increased demand for health benefits management [7] - The acquisition of LifeWorks has strengthened TELUS's position in digital health services, achieving $355 million in synergies since 2022, with a target of $427 million by the end of 2025 [8] Mental Health Support Expansion - TELUS Health partnered with MetLife to integrate mental health support into New Hampshire's Paid Family Medical Leave plan, providing access to Cognitive Behavioral Therapy and making mental health care more accessible [9] Financial Outlook - TELUS has set financial targets for 2025, expecting 2-4% growth in operating revenues and 3-5% growth in adjusted EBITDA for the Technology segment [10] Stock Performance - TELUS currently holds a Zacks Rank of 3 (Hold), with shares declining by 7.4% over the past year, compared to a 4.9% decline in the sub-industry [11]