T Earning Date, Transcript Summary & Report

Customer Growth Achievement: In the first quarter, TELUS achieved industry-leading customer growth with 218,000 net additions, marking the strongest first quarter on record.

Postpaid Churn Improvement: Postpaid mobile phone churn improved to 0.84%, reflecting a six basis point improvement over the previous year, maintaining a twelfth consecutive year below 1%.

Impressive Revenue and EBITDA Growth: TELUS Health reported impressive revenue and EBITDA growth of 1230%, driven by global expansion and product enhancements, with a 7% year-over-year increase in global lives covered to 76.5 million.

Market Expansion Through Acquisition: The acquisition of Workplace Options is expected to enhance TELUS Health's offerings, bringing the total lives covered to over 160 million, representing roughly 8% of the global market.

Dividend Increase Announcement: TELUS announced a 7% dividend increase, continuing its commitment to delivering superior value to shareholders and extending its multi-year dividend growth program.

Dividend Growth Target: The company is targeting 3% to 8% annual dividend growth from 2026 through 2028, allowing flexibility to support deleveraging efforts.

Free Cash Flow Growth: TELUS achieved a 22.3% growth in quarterly free cash flow, driven by lower capital expenditures and higher EBITDA, indicating strong financial health.

Operational Efficiency Improvement: The company is focused on improving operational efficiency and cost management, with TTEC adjusted EBITDA growth of 4% and margin expansion of 30 basis points to 42.4%.

2025 Financial Targets: TELUS is committed to achieving its 2025 targets, including TTEC operating revenues and adjusted EBITDA growth of 2% to 5%, and confirmed free cash flow guidance of $2.15 billion for 2025.

Mobile Revenue Decline: Mobile network revenue was down slightly, with a 3.7% decline in ARPU due to ongoing competitive pressures and lower roaming.

Wireless Revenue Decline: Despite strong customer growth, wireless service revenue showed a decline of almost 1%, indicating dissatisfaction with market performance.

Wireless Segment Performance Issues: The company acknowledged that it is not satisfied with the performance of its wireless segment, particularly in terms of ARPU and market competitiveness.

B2C Wireless Market Concerns: There is a concern regarding the commoditization of the B2C wireless market, which may lead to further ARPU declines as the market stabilizes.

Product Bundling Challenges: The company is facing challenges in improving product bundling and customer loyalty, which are critical for enhancing revenue and reducing churn.

Market Dynamics Challenge: The management team expressed frustration over the need to compete on price rather than service quality, indicating a struggle to shift market dynamics.

IoT Segment Performance Issues: The performance in IoT and machine-to-machine segments has been underwhelming, with a need for better product development and scaling to improve revenue growth.

Restructuring Cost Impact: The company is experiencing elevated restructuring costs as it adjusts to digital and economic challenges, impacting overall profitability.