Welcome to our dedicated page for Telus news (Ticker: TU), a resource for investors and traders seeking the latest updates and insights on Telus stock.
Business Overview
TELUS (TU) is a dynamic Canadian telecommunications company known for its robust portfolio in wireless communications, broadband services, digital solutions, and healthcare IT. As one of Canada’s major telecom providers, TELUS not only delivers high-quality messaging and connectivity services but also integrates advanced digital and AI innovations to enhance customer experience across its diverse business segments. The company’s operations extend beyond traditional telecommunications, including a strong presence in international business services and transformative digital platforms.
Core Operations and Revenue Model
TELUS generates revenue through a multi-faceted approach that spans wireless services, landline communications, residential and business broadband, television and entertainment solutions, and integrated digital offerings. The company’s core business is anchored in its high-speed networks, which support an extensive customer base across Canada. By offering bundled solutions that combine mobile, home internet, and digital media products, TELUS ensures steady subscriber growth and improves customer retention. Additionally, TELUS has strategically expanded into international digital services and healthcare IT, broadening its revenue streams and reinforcing its position across multiple market segments.
Market Position and Competitive Landscape
TELUS holds an influential position in the hypercompetitive Canadian telecommunications market. With a focus on operational efficiency, innovative service delivery, and a customer-centric business model, TELUS consistently outperforms many of its peers. The company’s robust infrastructure, particularly its world-class wireless and broadband networks, positions it favorably against competitors such as Bell and Rogers. TELUS differentiates itself through extensive investment in digital transformation and AI integration, ensuring that its service offerings remain adaptable, efficient, and aligned with evolving consumer demands. Its commitment to bundled products and cross-sell synergies across various segments further solidifies its market stance.
Innovation and Digital Transformation
Technology and innovation lie at the heart of TELUS’s operational strategy. The company has been a pioneer in integrating advanced digital solutions into its service frameworks, which include digital customer experience platforms, AI-driven customer support, and cybersecurity enhancements. TELUS leverages its expertise in digital transformation to continuously upgrade its technological capabilities, ensuring that its networks and service platforms are scalable, secure, and efficient. By adopting cutting-edge AI and data analytics technologies, TELUS creates intelligent solutions designed to optimize network performance, improve operational efficiency, and deliver personalized customer interactions.
Advanced Telecommunications and Healthcare IT
Beyond traditional telecom services, TELUS is recognized for its role as a leading provider of healthcare IT solutions in Canada. Its integrated healthcare services combine digital technology with clinical expertise to offer innovative solutions in remote care, digital health transactions, and patient data analytics. This unique integration of telecommunications and healthcare not only broadens TELUS’s market reach but also establishes it as a critical player in improving health outcomes nationwide.
Global Reach and Diversification
TELUS’s business strategy emphasizes diversification across several verticals. Internationally, its subsidiary operations in digital customer experience extend the company’s expertise beyond North American borders, serving clients in complex and emerging markets. Diversification into sectors such as agriculture and consumer goods has further reinforced TELUS’s business model by integrating innovative digital solutions that optimize supply chain and production practices. The company’s ability to cross-leverage its telecommunications infrastructure and digital platforms contributes to its resilient and adaptive growth strategy.
Operational Excellence and Customer Service
A key factor in TELUS’s sustained excellence is its unwavering focus on customer service. The company has built a reputation for delivering a high-quality, reliable, and customer-oriented service experience. With an emphasis on streamlined operational processes, cost efficiency, and continual network improvements, TELUS ensures long-term service reliability and competitive pricing. This dedication to customer service excellence is supported by significant investments in next-generation broadband and smart technologies, providing an ever-evolving suite of products designed to meet today’s digital demands.
Corporate Social Responsibility and Community Impact
TELUS is equally committed to social impact and corporate responsibility. Guided by its enduring philosophy of "give where we live," the company actively contributes to community development through volunteerism, charitable funding, and digital inclusion initiatives. TELUS’s community engagement highlights its passion for fostering social change and driving positive outcomes in the communities it serves. These initiatives, paired with its robust operational performance, position TELUS as an organization that is not only commercially successful but also socially responsible.
Expertise in Digital and AI Technologies
Emphasizing expertise in digital technologies, TELUS harnesses the potential of AI to enhance the efficiency and effectiveness of its network operations and digital platform offerings. The early integration of AI-driven customer support tools and data analytics solutions exemplify its forward-thinking approach to leveraging technology for operational improvement. By continuously investing in next-generation solutions, TELUS remains at the forefront of digital evolution, ensuring that its infrastructure and services set benchmarks in the competitive telecommunications landscape.
Summary
In summary, TELUS stands out as a comprehensive communications technology company that seamlessly blends traditional telecom services with leading-edge digital innovation and healthcare IT solutions. Its robust operational model, commitment to customer satisfaction, and proactive investment in digital transformation underscore its significant role within the industry. With diversified revenue streams, strategic market positioning, and a proven track record of operational excellence, TELUS continues to excel as an influential and trusted name across various sectors.
This comprehensive overview reflects expert-level insights into TELUS’s business model, operational strategies, and market significance, providing a detailed understanding for investors, industry analysts, and stakeholders seeking to comprehend the company's expansive role in modern telecommunications and digital services.
TELUS has acquired 2,593,631 subordinate voting shares of TELUS Digital through market purchases on the Toronto Stock Exchange. This acquisition represents an additional 2.35% interest in TELUS Digital subordinate voting shares since TELUS' prior early warning report on August 16, 2024. TELUS now holds approximately 5.99% of the outstanding subordinate voting shares.
The purchase was made under the normal course purchase exemption. After the acquisition, TELUS holds 152,004,019 multiple voting shares and 6,624,822 subordinate voting shares, representing about 92.5% of outstanding multiple voting shares, 6.0% of outstanding subordinate voting shares, and 87.0% of outstanding voting rights of TELUS Digital.
TELUS CEO Darren Entwistle stated that these purchases reflect their confidence in TELUS Digital's long-term profitable growth strategy and are not part of a privatization plan.
TELUS has joined the U.S. AI Safety Institute Consortium (AISIC), becoming the first Canadian telecom to participate in this initiative aimed at developing safe and trustworthy AI. The consortium, established by the U.S. Department of Commerce's National Institute of Standards and Technology, includes over 280 leading AI stakeholders from various sectors. TELUS's involvement underscores its commitment to responsible AI development and deployment.
TELUS has been a pioneer in AI ethics, recently launching a generative AI customer support tool that became the first in the world to be internationally certified in Privacy by Design (ISO 31700-1). The company also won an Outstanding Organization 2023 prize from the Responsible AI Institute and is the first Canadian telecom to sign the Government of Canada's voluntary code of conduct for generative AI.
TELUS Digital reported its Q2 2024 results, showcasing strong cash flows despite macroeconomic pressures.
Revenue decreased by 2% year-over-year to $652 million due to lower revenues from a leading social media client. Net loss was $3 million with a diluted EPS of $(0.08). However, Adjusted Net Income increased by 5% to $46 million, and Adjusted EBITDA rose by 10% to $130 million.
Full-year 2024 guidance has been revised: revenue between $2,610-$2,665 million, Adjusted EBITDA $465-$485 million, and Adjusted Diluted EPS $0.39-$0.44.
Key executive changes include Jeff Puritt's retirement as CEO, with Jason Macdonnell as Acting CEO, and Tobias Dengel elevated to President of TELUS Digital Solutions.
Notable achievements include growing AI-related business accounting for ~15% of total revenue and new contracts with prominent clients. Cash flows remain strong, supporting debt repayment and reinvestments.
TELUS reported its Q2 2024 results, highlighting a 13% increase in net income to $221 million and a 7.1% rise in EPS to $0.15. The company's consolidated EBITDA rose by 5.5% to $1.7 billion, while adjusted EBITDA saw a 5.6% increase to $1.8 billion. Key drivers included subscriber growth in mobile, internet, and security services, alongside efficiency improvements and cost reductions.
Customer additions reached a record 332,000, with notable contributions from 101,000 mobile phones and 161,000 connected devices. TELUS Health and TELUS Agriculture also showed strong performance, with healthcare lives covered increasing by 10% to 75.1 million and agriculture revenue up by 15%.
Despite a competitive environment, TELUS maintained its guidance for capital expenditures at $2.6 billion but revised its free cash flow forecast to $2.1 billion. The company continues to focus on driving margin-accretive customer growth and operational efficiency.
Mobile Klinik, TELUS' device care and repair subsidiary, and MCE Systems have launched a new end-to-end trade-in solution integrated into the Mobile Klinik Device Checkup app. This solution offers a seamless, digital-first trade-in journey for customers and operational efficiencies for TELUS. Key features include:
1. Instant assessment and valuation on the device through diagnostic tests
2. A connected retail experience using QR codes to transfer information from app to store
3. Reduced friction and uncertainty for customers
4. Accelerated in-store process
5. Integrated pricing and promotion engine
6. Direct connectivity to the warehouse for downstream efficiency
This innovation reinforces Mobile Klinik's position as Canada's leading smartphone repair brand and demonstrates TELUS' commitment to superior customer service.
Magnite (NASDAQ: MGNI), the largest independent sell-side advertising company, has been chosen by TELUS (TSX: T) (NYSE: TU) as its preferred ad technology solutions partner in Canada. TELUS will utilize Magnite's SpringServe ad server and Streaming SSP for its Free Ad-Supported TV (FAST) and online video advertising inventory. This partnership aligns with the growing trend of ad-supported streaming, as 74% of Canadian consumers now watch streaming TV. The collaboration aims to enhance TELUS's TV offerings at no additional cost to customers, while providing advertisers with better insights and control over their campaigns.
Magnite's technology will allow TELUS to manage and monetize its connected TV (CTV) inventory more effectively. TELUS has already deployed FAST channels like TIME, Tastemade, and The Washington Post to its TV+ customers, offering new opportunities for advertisers and agencies to connect with audiences. Both companies are excited about the potential to redefine the Canadian advertising landscape and deliver premium ad experiences to consumers and brands alike.
TELUS announced the election of directors at its annual meeting. The 14 nominees proposed by management were elected, with high percentages of votes in favor for each director. The detailed voting results were disclosed, showing strong support from shareholders.
Telus CEO, Darren Entwistle, has decided to receive his salary in shares indefinitely, reflecting his confidence in the company's financial health, long-term strategy, and the team's skill. This decision comes after Telus reported industry-leading customer additions and solid financial results. Entwistle's move demonstrates his alignment with shareholders and past practice of investing significantly in Telus shares.
TELUS International reported its first quarter 2024 results, showing revenue of $657 million, net income of $28 million, and diluted EPS of $0.05. The company maintained profitability and strong cash flows despite economic pressures, with adjusted EBITDA increasing by 9%. The team member count decreased by 3% year-over-year. The outlook for 2024 includes revenue growth of 3% to 5%, adjusted EBITDA growth of 7% to 10%, and adjusted diluted EPS growth of 7% to 13%.
TELUS reported strong operational and financial results for the first quarter of 2024, with total mobile and fixed customer growth of 209,000, a record first quarter. Notable highlights include robust net additions across mobile phones, connected devices, and fixed services, resulting in revenue growth. The company raised its dividend by 7.0%, reiterated its 2024 financial targets, and remains committed to delivering value to shareholders. Despite a decline in operating revenues, TELUS demonstrated resilience in a competitive environment.
FAQ
What is the current stock price of Telus (TU)?
What is the market cap of Telus (TU)?
What are the core business segments of TELUS?
How does TELUS generate its revenue?
What differentiates TELUS from its competitors?
How is TELUS advancing its digital transformation?
In which additional industries does TELUS have a significant presence?
What role does customer service play in TELUS’s strategy?
