TELUS Corporation has released its unaudited financial results for Q4 2024, showcasing significant customer growth and solid financial performance. The company also unveiled its financial targets for 2025, setting TELUS’s position for continued growth.
In Q4 2024, TELUS saw a 3.5% year-over-year increase in consolidated operating revenues and other income, reaching USD 5.4 billion, which is attributed to the impressive performance of the TELUS technology solutions (TTech) segment. Meanwhile, the TELUS Digital segment experienced a decline in operating revenues due to reduced revenue from certain technology and eCommerce clients.
TELUS achieved notable customer growth, attaining 328,000 customer net additions in Q4, with 70,000 mobile phone net additions, 194,000 connected devices, 64,000 fixed net additions, and 37,000 internet customer additions. This strong performance contributed to a total of 1.2 million new customer additions, surpassing one million mobility and fixed customer additions.
Darren Entwistle, President and CEO at TELUS, highlighted, “In the fourth quarter, our team's relentless pursuit of operational excellence continued to differentiate the TELUS organization, driving significant customer growth and excellent financial results. Through our premier asset portfolio and unwavering commitment to cost efficiency, we delivered strong profitable growth to close out 2024, momentum we intend to build upon in 2025.”
Related: TELUS’ Q3 2024: Strong Customer Growth and Continued Digital Investment
Key Highlights
TELUS’s global data businesses have delivered impressive results, with TELUS Health achieving accelerated revenue growth of 10% and a 20% increase in adjusted EBITDA contribution. TELUS Agriculture and Consumer Goods also demonstrated a strong performance, noting an increased revenue of 16%, driven by the growing profitability and margin contributions.
Entwistle emphasized, “Our strategic investments in our leading broadband network, particularly in our highly valuable fiber and wireless assets, underpin the continued advancement of our financial and operational performance. These investments enable consistent, long-term profitable growth, supported by our unique asset base, customer experience leadership, and world-leading networks.”
Doug French, Executive Vice President and CFO, commented on the financial results, stating, “Our fourth quarter results underscore our consistent operational execution amidst a dynamic environment. We achieved TTech operating revenue growth of 4.1%, driven by mobile equipment and fixed data revenue growth, as well as strong financial contributions from our health and agriculture and consumer goods lines of service. Notably, TTech Adjusted EBITDA increased by 7% in the fourth quarter, and for the full year, TTech Adjusted EBITDA growth was 5.5%, achieving the low end of our full year target, demonstrating our unparalleled track record of execution excellence.”
“This growth was driven by our consistent emphasis on profitable customer growth, the benefits from our ongoing focus on cost efficiency and effectiveness, gains from our real estate and copper monetization program, as well as increasing margin contribution from TELUS Health and TELUS Agriculture & Consumer Goods,” he added. “Free cash flow of approximately $2.0 billion was slightly below our updated full-year target due to contract asset and device financing, associated with our strong growth in contracted volumes, and increased restructuring payments. This was partially offset by lower capital expenditures, which came in below our full year target."
Read More: TELUS Q3 2022: Strongest Quarter Driven by Higher YoY Customer Growth
2025 Outlook
TELUS’s impressive financial results have given a boost to the company’s 2025 targets, which include TTech operating revenue and adjusted EBITDA growth of up to 4% and 5% respectively. The consolidated free cash flow is expected to reach approximately USD 2.15 billion, supported by moderating Consolidated Capital Expenditures of around USD 2.5 billion.
Looking forward, Entwistle highlighted the company’s goal of achieving a net debt to EBITDA ratio of approximately 3 times by 2027.
“Our TELUS team is equally committed to driving positive social outcomes in our communities. Demonstrating our passion for making the future friendly, our TELUS team members and retirees volunteered 1.5 million hours globally in 2024, marking our 8th consecutive year surpassing one million volunteer hours and making 2024 our most giving year ever.” The CEO stressed that the TELUS volunteers have given 2.4 million days since 2000–more than any other company in the world.
As of Q4 2024, TELUS maintained approximately USD 2.9 billion of available liquidity, with an average cost of long-term debt of 4.37% and an average term to maturity of long-term debt of over 10 years. The company expects to improve the net debt to EBITDA in 2025.
CFO Doug French highlighted his positive outlook on TELUS’s future, stating, “For 2025, we are confident in driving strong, sustainable growth despite a competitive market, supported by our powerful asset mix and resilient business strategy. We anticipate continued free cash flow expansion underpinned by strong EBITDA growth and stable capital expenditures as we drive towards the 10 percent capital intensity level. Our asset monetization opportunities, including our ongoing real estate and copper initiatives, as well as other strategic levers, will support our deleveraging plans and ensure we remain well-equipped to deliver strong, sustainable growth well into the future."
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