Financial Data and Key Metrics Changes - TELUS achieved total mobile and fixed customer growth of 198,000 in Q2 2025, driven by mobile phone and connected device additions of 167,000 and fixed customer additions of 31,000 [7][8] - Postpaid mobile phone churn remained at 0.9%, consistent with Q2 of the previous year, marking the twelfth consecutive year below the 1% level [8] - TTEC EBITDA growth, including TELUS Health, was up 4%, consistent with Q1 results [8][19] - Free cash flow increased by 11% year-over-year to CAD 535 million, driven by higher EBITDA and lower capital expenditures [23][25] - Adjusted net income was CAD 342 million, with an EPS of CAD 0.22 [22] Business Line Data and Key Metrics Changes - TELUS Health reported an extraordinary adjusted EBITDA growth of 1629%, with operating revenue also reflecting significant growth [10][19] - Fixed data services revenue grew by 3% year-over-year, marking the eighteenth consecutive quarter of positive growth [19] - Mobile network revenue experienced a slight decline due to lower mobile phone ARPU, which fell by 3.3% [18][19] Market Data and Key Metrics Changes - The competitive landscape in the mobile sector remains challenging, with ongoing pressures on ARPU due to market conditions [18][19] - TELUS is the only company in the industry to deliver positive net additions in the wireline sector, highlighting its competitive advantage [9] Company Strategy and Development Direction - TELUS announced a CAD 2 billion investment to expand broadband services in Ontario and Quebec, reflecting its commitment to enhancing connectivity [5][6] - The company is focusing on bundling wireless and wireline broadband services to differentiate itself from competitors [6][10] - TELUS is pursuing a strategy of monetizing its tower infrastructure through the establishment of Terion, which will build new towers and enhance financial flexibility [13][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Canadian market, emphasizing the importance of private investment and innovation [6][7] - The company anticipates continued improvements in its leverage ratio, aiming for a net debt to EBITDA ratio of three times by 2027 [24][26] - Management highlighted the importance of AI and digital solutions in driving operational efficiencies and enhancing customer experiences [82][83] Other Important Information - TELUS Friendly Future Foundation raised over CAD 2.6 million to support student bursaries, demonstrating the company's commitment to community engagement [16] - The company is actively pursuing partnerships to enhance its service offerings and expand its market reach [14][76] Q&A Session Summary Question: Strategic shift regarding the proposed privatization of TIAXT - Management clarified that the move is related to supporting deleveraging goals and does not indicate a change in monetization strategies for other tech ventures [31][32] Question: Financial details on the towers and EBITDA - Management did not disclose specific EBITDA figures but confirmed that all towers will operate at fair market value rent, ensuring transparency [34] Question: Long-term impact of tower deals and colocation opportunities - Management indicated that demand for data continues to rise, and the partnership with Terion will support cash flow positivity through tower construction and colocation [40] Question: Market pricing discipline and sustainability - Management expressed cautious optimism about the current pricing trends, noting that irrational pricing cannot be sustained in the long term [41][42] Question: Sustainability of fixed data growth - Management highlighted the diversity of contributions to fixed data growth and expressed confidence in the sustainability of this growth moving forward [68] Question: Update on deleveraging drivers, particularly real estate - Management discussed ongoing efforts to rationalize real estate and the potential for significant monetization opportunities in the future [72][73] Question: Role of traditional telcos in the AI ecosystem - Management identified three key areas for growth in the AI ecosystem, including leveraging existing infrastructure and enhancing internal operations through AI [81][82]

Financial Data and Key Metrics Changes - TELUS achieved total mobile and fixed customer growth of 198,000 in Q2 2025, driven by mobile phone and connected device additions of 167,000 and fixed customer additions of 31,000 [5][6] - TTEC EBITDA growth, including TELUS Health, was up 4%, consistent with Q1 results, while mobile phone net additions were 55,000 and connected device net additions were 112,000 [6][7] - Free cash flow increased by CAD 535 million, an 11% rise compared to the same period last year, driven by higher EBITDA and lower capital expenditures [21][23] Business Line Data and Key Metrics Changes - TELUS Health reported an extraordinary growth in operating revenue and adjusted EBITDA of 1629% respectively, with a significant increase in global lives covered to almost 160 million [8][19] - Fixed data services revenue grew by 3%, marking the eighteenth consecutive quarter of positive growth, supported by subscriber ARPU growth in Internet and security services [18][19] - Mobile network revenue saw a slight decline due to lower mobile phone ARPU, which decreased by 3.3% amid competitive pressures [17] Market Data and Key Metrics Changes - The Canadian market is showing signs of stabilization, with improvements in ARPU trends across new activations and customer renewals [17][39] - TELUS is committed to expanding broadband services in Ontario and Quebec with a CAD 2 billion investment, reflecting confidence in the Canadian market [4][5] Company Strategy and Development Direction - TELUS is focusing on bundling wireless and wireline broadband services, aiming to differentiate itself through innovative offerings such as AI-driven smart home solutions and next-generation healthcare [4][5] - The company is pursuing a strategy of monetizing its tower infrastructure through a partnership with Akeis, which will enhance financial flexibility and support balance sheet deleveraging [11][24] - TELUS is leveraging its existing assets for new opportunities, particularly in AI and data centers, to drive long-term value creation [79][99] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, noting that the market is transitioning from irrational pricing to more sustainable pricing models [39][41] - The company anticipates continued improvements in its leverage ratio, aiming for a net debt to EBITDA ratio of three times by 2027 [22][24] - Management emphasized the importance of customer experience and product differentiation as key drivers for future growth [44][46] Other Important Information - TELUS Friendly Future Foundation raised over CAD 2.6 million to support student bursaries, reflecting the company's commitment to community support [15] - The company is actively working on real estate rationalization and copper monetization, with significant opportunities identified in these areas [71][73] Q&A Session Summary Question: Strategic shift regarding the proposed privatization of TIAXT - Management clarified that the move is related to supporting deleveraging goals and should not be interpreted as a change in monetization strategy for other tech ventures [28][29] Question: Financial details on the tower entity - Management did not disclose specific EBITDA figures but confirmed that all towers will operate at fair market value rent, ensuring positive cash flow [30][31] Question: Long-term impact of tower deal and deployment of more towers - The demand for data is increasing, and the partnership with Terion will allow for continued tower construction and co-location opportunities, enhancing cash flow [36][38] Question: Sustainability of recent pricing improvements in wireless - Management noted that while certainty is not guaranteed, the current trend is encouraging, and the market must shift from irrational pricing to rational pricing for sustainability [39][41] Question: Update on fixed data growth sustainability - Management expressed confidence in the sustainability of fixed data growth, supported by diverse service offerings and strong customer experience [66][68] Question: Plans for new data center construction - TELUS has already invested in world-class data centers and is leveraging these assets for AI initiatives, minimizing the need for additional capital investment [97][99]

Financial Performance - TELUS reported consolidated operating revenues of $5 billion, a 3% year-over-year increase[35] - Adjusted EBITDA reached $1.8 billion, up 1% year-over-year[35] - Free cash flow increased by 11% year-over-year to $535 million[35] - Capital expenditures (excluding real estate) decreased by 2% year-over-year to $657 million[35] Customer Growth & Operations - Total customer additions were 198,000, with industry-leading postpaid mobile phone churn of 0.90%[8] - Mobile phone net additions were +55,000[10] - Connected device net additions were +112,000[10] - Internet net additions were +27,000[13] - TV net additions were +12,000[13] TELUS Health - TELUS Health external revenues grew by 16% year-over-year to $517 million[27] - TELUS Health Adjusted EBITDA increased by 29% year-over-year to $91 million[27] - TELUS Health covered 157.1 million lives, including 79.3 million added due to the Workplace Options acquisition and a change in definition[27] Strategic Initiatives - Strategic infrastructure expansion includes a $2 billion investment to expand PureFibre in Ontario and Quebec[8] - A definitive agreement was announced with La Caisse, who will acquire a 49.9% interest in Terrion for $1.26 billion[49] - Terrion is valued at over $2.5 billion and is expected to reduce TELUS' net debt by approximately $1.26 billion[49]

Core Insights - TELUS Corporation reported a total customer growth of 198,000 in the second quarter of 2025, driven by strong demand for bundled services and expansion of TELUS PureFibre connectivity [1][3] - The company achieved operating revenue growth of 2% to $5.1 billion and adjusted EBITDA growth of 4%, indicating a robust diversified business portfolio [2][12] - TELUS Health segment saw significant growth, with operating revenue and adjusted EBITDA increasing by 16% and 29% respectively, covering 157 million lives globally [3][8] Financial Performance - Consolidated free cash flow increased by 11% to $535 million, reflecting improved operational efficiency [1][9] - Operating revenues from TTech, including TELUS Health, rose by 2% while adjusted EBITDA grew by 4%, aligning with the company's financial targets for 2025 [2][6] - The company recognized a net loss of $245 million due to a $500 million impairment of goodwill related to TELUS Digital, but adjusted net income was $342 million, down 7% year-over-year [5][12] Customer Growth and Segments - TELUS added 198,000 net customers, with mobile phone and connected device additions contributing significantly [3][7] - The total TTech subscriber base reached 20.5 million, a 5% increase year-over-year, with notable growth in mobile phones and connected devices [7][12] - TELUS Health's healthcare lives covered increased by 82 million over the past year, primarily due to the acquisition of Workplace Options [8][24] Capital Expenditures and Investments - Consolidated capital expenditures were $678 million, a decrease of 2% from the previous year, with a focus on TTech operations and TELUS Health expansions [10][12] - The company announced a definitive agreement with La Caisse to acquire a 49.9% interest in a new wireless tower operator for $1.26 billion, aimed at monetizing its tower infrastructure [2][4] Strategic Outlook - TELUS reaffirmed its 2025 financial targets, including operating revenue growth of 2-4% and adjusted EBITDA growth of 3-5% [1][2] - The company aims to achieve a net debt to EBITDA ratio of 3 times by 2027, supported by ongoing asset monetization initiatives [4][6] - TELUS continues to focus on customer expansion, product innovation, and service enhancement to drive long-term value creation [4][6]