Telus reports solid Q1, jump in profit

As Telus Corp. reported its first quarter of 2025 on Friday, May 9, the western telecom said it had good revenues and managed to increase its dividend to shareholders. “This performance was driven by strong demand for our highly differentiated, integrated product offering across mobile and home, powered by our leading pure fibre and wireless broadband network,” company CEO Darren Entwistle said in a conference call with telecom analysts. Dividends went up seven per cent to 21 cents, a hike from nine cents in Q1 2024. Entwistle anticipates three- to eight-per-cent growth in dividends from 2026 to 2028. That is a contrast to BCE Inc., which slashed its dividend on Thursday. Operating revenues from customer contracts in Q1 2025 came in at $5.01 billion, compared to Q1 2024’s $4.86 billion. Operating revenues and other income registered at $5.05 billion, up from $4.93 billion a year earlier. Both categories showed a three per cent increase year-to-year. Operating expenses were $4.3 billion, down one per cent from 2024’s $4.35 billion. This left a net profit of $301 million in Q1 2025, a jump from Q1 2024 profit of $140 million. Capital expenditures (capex) were $587 million, down 19 per cent from the $725 million posted a year previous. Average revenue per user (ARPU) for wireless subscribers was $57.13 in Q1 2025, a decline of $2.18 or 3.7 per cent from a year earlier. This is because of base rate plans with lower prices in response to intense competition. Telus said it saw an increase in the adoption of unlimited data and Canada-US-Mexico plans which it said should provide higher and more stable ARPU. Entwistle called for changes to the way the sector sells its products. “We have to change the psychology of the industry as it relates to marketing and sales,” the CEO said during the question period of the analyst call. “We have a wireless industry where we have to have price competition parity. I for one don’t understand that. Why can’t we have a price premium?” He opined that having a better product and better service should outplay a race to the economic bottom. “Customers value reliability more than affordability,” he concluded. For the first time, the Telus Health division reported as a separate service segment. Health services revenues grew by $54 million, or 13 per cent. This was attributable to global business acquisitions; growth in benefits management services, and growth in the retirement benefits business. Equipment revenues for Q1 2025 fell by 75 per cent to $3 million due to increased revenue in 2024 from a pharmacy hardware upgrade. Telus’ health care programs now cover 76.5 million people worldwide, a jump of 4.8 million over the previous year. This was attributed to the growth of the employee and family assistance programs the company offers. CFO Doug French congratulated Entwistle for taking part in his 100th quarterly conference call. The CEO has been at the helm of the company since 2000. ppark@thewirereport.ca

Telus reports solid Q1, jump in profit

Telecom |
By Paul Park
| May 9, 2025

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Telus reports solid Q1, jump in profit

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Telecom |
By Paul Park
| May 9, 2025