TELUS (NYSE:TU) FY Conference Transcript

TELUS FY Conference Summary Company Overview - Company: TELUS (NYSE: TU) - Date of Conference: September 09, 2025 Key Industry Insights - The telecommunications industry is facing pressure from shareholders regarding growth and debt levels, prompting companies like TELUS to reassess their strategies [3][4] - TELUS has maintained a consistent strategy focused on building superior networks, customer service, and relevant products [4][5] Core Strategies and Execution - Network Development: TELUS emphasizes the importance of fiber technology for internet services, having been an early adopter [4] - Customer Service: The company has led in customer service and churn management for over 15 years, leveraging AI and digitization to enhance service delivery [6][7] - Product Relevance: TELUS is focused on evolving its product offerings to remain relevant, particularly in health and technology sectors [6][7] Revenue Outlook - Wireless Segment: The wireless pricing environment is competitive but stable, with TELUS opting not to engage in unprofitable promotions [9][10][11] - Wireline Segment: Fixed data line revenue has shown a 3% growth, attributed to the bundling of services and strong traction in fiber and digital services [14][15] Capital Expenditure and Growth - TELUS plans to maintain a capital intensity of around 10%, with significant investments in Ontario and Quebec [19][20] - The company is exploring third-party partnerships for fiber deployment to manage costs effectively [21][22] Market Expansion - TELUS is expanding its footprint in Eastern Canada, focusing on small and medium-sized businesses (SMBs) and ensuring high service levels [17][18][26] - The company aims to avoid overbuilding and will assess market opportunities based on population density and service needs [23][24] Cost Management and Profitability - TELUS is implementing AI-driven tools to reduce churn and improve operational efficiency, which has already shown a reduction in churn rates [28][29] - The company is focused on maintaining a strong cost structure while expanding its service offerings [27][28] Financial Targets and Asset Monetization - TELUS aims to achieve a leverage ratio of 3 times by 2027 through operational execution, free cash flow generation, and monetization of non-core assets [33][34] - The company is in the early stages of monetizing its copper assets, with a target of $500 million in the medium term [37][39] Real Estate and Tower Agreements - TELUS is exploring monetization opportunities in real estate and has plans for a potential REIT by 2026 [41][42] - The company has monetized 49% of its tower assets and is open to further collaboration with other operators [43][44] Health Sector Growth - TELUS Health is experiencing double-digit growth, driven by synergies from acquisitions and international expansion [50][51] - The company is looking for strategic partnerships to enhance its health services and maximize valuation [52][53] TELUS Digital Integration - The integration of TELUS Digital aims to reduce costs and enhance AI capabilities within the organization [55][56] Conclusion - TELUS is strategically positioned to navigate industry challenges through a focus on network development, customer service, and innovative product offerings while managing costs and expanding its market presence. The company is optimistic about future growth in both its telecommunications and health sectors.