TELUS Conference Call Summary Company Overview - **Company**: TELUS (NYSE: TU) - **Date**: November 24, 2025 - **Speaker**: Doug French, CFO Key Points Industry and Competitive Landscape - TELUS focuses on three pillars: best networks, best products, and best customer service [4][5] - The competitive intensity in the mobile industry has eased since May, with a quieter Black Friday compared to previous years [7][8] - Pricing in Canada has decreased significantly, with rates down over 70% compared to initial asks, indicating a need for correction due to higher delivery costs [8][9] Financial Performance and Growth - Wireless Average Revenue Per User (ARPU) is showing slow and steady improvement, expected to continue into 2026, although still negative [12][13] - In Q3, TELUS added 40,000 internet subscribers, with growth evenly split between Eastern and Western Canada, and across business segments [16][17] - Fixed data revenue growth has slowed to 1%, primarily due to pressures in the business sector, while consumer internet revenue remains strong at over 6% [26][28] Fiber Deployment Strategy - TELUS is expanding fiber deployment into Eastern Canada, aligning with its capital intensity objectives [20][21] - The company aims to bundle internet services with existing wireless customers in the East, enhancing service offerings [24] AI and Digital Growth - TELUS aims to grow AI-enabling revenue from $800 million to $2 billion over the next few years, with significant contributions from TELUS Digital and B2B growth [31][32] - The company is leveraging its data centers for AI and compute services, with partnerships with NVIDIA and HP to enhance capabilities [33][34] Health Care and Monetization - TELUS Health is projected to grow significantly, with a valuation exceeding $5 billion, and potential partnerships to enhance commercial efficacy [40][41] - The integration of acquisitions is expected to yield synergies and improve profitability [40] Future Outlook - The company anticipates strong EBITDA growth driven by health care, technology, and digital initiatives, while managing ARPU challenges [44][48] - TELUS plans to monetize assets, including real estate and copper footprint, to support its deleveraging strategy and maintain dividend commitments [49][50] Capital Expenditure and Financial Strategy - TELUS maintains a capital intensity target of 10%, with a focus on efficient capital management and revenue generation from new investments [39][50] - The company is committed to reducing its Dividend Reinvestment Plan (DRIP) to zero by the end of 2027 [50] Additional Insights - TELUS is focused on improving customer service and reducing churn rates, with ongoing investments in digital and AI technologies [5][46] - The company is optimistic about the growth trajectory in health care and technology sectors, which are expected to contribute positively to overall performance [44][45]