TELUS(TU)2024-05-09 20:40Financial Data and Key Metrics Changes - TELUS achieved resilient EBITDA growth of 4.3% and margin expansion of 170 basis points, reflecting the effectiveness of ongoing efficiency programs [70][36] - Consolidated operating revenues decreased by 1.2% year-over-year, while consolidated net income was down 38% year-over-year, and basic EPS was lower by 40% [36][21] - Free cash flow of 139 million primarily due to higher cash restructuring disbursements [37][36] Business Line Data and Key Metrics Changes - TELUS reported record first quarter mobile subscriber growth of 146,000 net additions, including 101,000 connected device net additions, a 74% increase year-over-year [71][74] - TTech operating revenues were up slightly by 0.4%, while adjusted EBITDA increased by 4.1% with an adjusted EBITDA margin expanding by 170 basis points [32][70] - TELUS Health achieved first quarter revenues of 59.31, down year-over-year due to intense promotional market activity [76][29] Company Strategy and Development Direction - TELUS is focused on margin accretive customer growth and enhancing its premium offerings to drive customer loyalty and profitability [3][4] - The company is leveraging its digital transformation to lower costs and improve customer experience, which is expected to support future growth [77][79] - TELUS aims to maintain a strong balance sheet while investing in growth opportunities across its business lines, including health and agriculture [41][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the competitive environment and macroeconomic challenges but expressed confidence in achieving financial targets for 2024 [24][38] - The company anticipates improvement in TELUS International and TELUS Health in the second half of the year, supported by strong sales bookings and operational efficiencies [40][138] - Management reiterated a commitment to delivering superior value to shareholders through a consistent dividend growth program [21][41] Other Important Information - TELUS announced a 7% dividend increase, reflecting its commitment to delivering superior value to shareholders [21][41] - The company is focused on cross-selling opportunities across its various business lines to enhance revenue growth [141][140] Q&A Session All Questions and Answers Question: Will TTech EBITDA growth pick up in subsequent quarters? - Management confirmed that they expect EBITDA growth for TTech to pick up, although they do not provide specific guidance [85] Question: What is the rationale for the recent changes in ARPU metrics? - Management explained that ARPU is influenced by competitive pressures and promotional activities, and they are focusing on profitability and customer segmentation [45][50] Question: Can you provide more details on the fixed data services revenue growth? - Management indicated that competitive pressure is affecting ARPU, but they are optimistic about growth opportunities through bundling and new product development [111][114] Question: What is the outlook for TELUS Health revenue growth? - Management expressed confidence in steady improvement in revenue growth for TELUS Health, driven by strong sales performance and integration synergies [138][139]