TELUS(US:TU)2020-11-07 07:07Financial Data and Key Metrics Changes - In Q3 2020, consolidated revenue increased by 7.7%, while EBITDA decreased by 0.6%, primarily due to pandemic-related impacts [8][9] - Without the effects of COVID-19, EBITDA would have grown by approximately 5% at the consolidated level [9][36] - Free cash flow for the quarter was $161 million, down $159 million year-over-year, mainly due to the timing of income tax payments [38] Business Line Data and Key Metrics Changes - Wireless network revenue decreased by 2.9%, with wireless EBITDA down 1.6%, impacted by reduced roaming revenue [10][34] - The wireless segment achieved 111,000 mobile phone net additions, with a total of 198,000 net additions including connected devices, up 3% year-over-year [10][33] - Wireline revenues increased by 18%, with EBITDA up 1.6%, driven by a 23% growth in data revenue [14][35] - Internet net additions reached 50,000, the highest quarterly loading since 2002, with an internet churn rate below 1% [17][18] Market Data and Key Metrics Changes - The company expanded its pure fiber coverage to approximately 78% of its high-speed broadband footprint [18] - TELUS was recognized as having the fastest mobile network in Canada and the fastest Internet service provider in Canada by various independent authorities [11][18] Company Strategy and Development Direction - TELUS announced the planned acquisition of Lionbridge AI to enhance its capabilities in data annotation services for AI algorithms [21][27] - The company is targeting an IPO for TELUS International in Q1 2021, which is expected to support organic expansion and selective acquisitions [22][29] - TELUS aims to resume its multiyear dividend growth program, targeting annual growth between 7% and 10% through 2022 [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's operational and financial performance, highlighting strong customer loyalty and engagement [7][19] - The ongoing pandemic has created challenges, but the company remains focused on cost management and growth opportunities, particularly in the digital space [8][36] - Management emphasized the importance of 5G and fiber networks in driving future growth and innovation across various sectors [12][46] Other Important Information - TELUS has returned nearly $19 billion to shareholders since 2004, including $13.6 billion in dividends [19] - The company continues to support community initiatives, providing low-cost Internet to low-income families and free smartphones to youth transitioning out of foster care [23][25] Q&A Session Summary Question: Insights on 5G rollout and competitive environment - Management discussed the gradual rollout of 5G, emphasizing its potential to drive customer upgrades to premium plans and the importance of rural expansion [43][44] - The competitive landscape has intensified with aggressive promotions from competitors, but TELUS remains focused on high-value customer acquisition [48][67] Question: Details on TELUS International and acquisition financing - Management clarified that TELUS and Bearing will maintain similar ownership ratios post-acquisition, with a focus on retaining control [56][62] - The acquisition of Lionbridge AI is expected to enhance TELUS International's capabilities in AI-driven services, with a strong growth profile anticipated [55][57]