VANCOUVER - TELUS Corporation (TSX:T, NYSE:TU) reported strong first-quarter results for 2025, showcasing continued customer growth and steady financial performance. The earnings announcement, made on May 9, 2025, revealed that the company added 218,000 net new mobile and fixed customers during the quarter, marking its strongest first quarter on record for customer additions. This growth comes despite a competitive landscape that has seen other telecom companies struggle.
In terms of financials, TELUS reported adjusted earnings per share of $0.26, aligning with analyst expectations. The company’s revenue increased by 3% year-over-year to $5.1 billion, slightly surpassing projections. Darren Entwistle, President and CEO of TELUS, emphasized the company's performance, stating, "Our first quarter results demonstrate the resiliency of our business within a dynamic operating environment." He highlighted that the strong customer growth is a key driver of this performance.
The company’s TTech segment, which encompasses its core telecom operations along with the new TELUS Health unit, saw operating revenue grow by 3% and adjusted EBITDA rise by 4% compared to the same quarter in 2024. TELUS Health has proven to be a standout performer, achieving a 12% increase in revenue and a remarkable 30% rise in adjusted EBITDA.
In addition to these financial metrics, TELUS declared a quarterly dividend of $0.4163 per share, representing a 7% increase from the previous year. The company also extended its dividend growth program, targeting annual increases of 3-8% through 2028. This commitment to returning value to shareholders is further underscored by an attractive dividend yield of approximately 8% based on the current share price.
Despite the positive results, TELUS faced challenges in certain areas. The average revenue per user (ARPU) for mobile phones decreased to $57.13, down 3.7% from the previous year. This decline was attributed to customers opting for base rate plans with lower prices amidst intense competition, which has pressured pricing across the industry. Furthermore, the company reported a mobile phone churn rate of 1.06%, a slight improvement from 1.13% in the previous year, reflecting TELUS’s ongoing focus on customer retention through effective promotions and bundled offerings.
In terms of operational efficiency, TELUS reported a free cash flow increase of 22% year-over-year to $488 million, alongside a 13% rise in cash from operations. This robust financial foundation allows TELUS to continue investing in strategic growth initiatives while maintaining strong liquidity.
The company’s strategic management has also been evident in its approach to capital expenditures, which were reduced by 19% compared to the previous year, amounting to $587 million. This reduction is part of TELUS's broader strategy to optimize its asset portfolio and enhance operational efficiency.
In the realm of digital transformation, TELUS Digital reported its first-quarter results, indicating a 2% revenue increase to $670 million, driven by growth in AI and data solutions. However, it also faced a net loss of $25 million due to rising operating expenses. Despite these challenges, TELUS Digital remains optimistic about future growth and continues to focus on enhancing client engagement through automation and cost efficiency.
As TELUS navigates the competitive telecom landscape, its strategic focus on bundled services and premium broadband networks has positioned it favorably. The company’s total telecom subscriber connections reached 20.3 million, reflecting a 6% increase from the previous year, supported by significant growth in connected devices and internet subscriptions.
TELUS Health continues to expand its reach, now covering 76.5 million lives globally, a 7% increase year-over-year. This growth is fueled by strategic investments and a commitment to enhancing healthcare access through technology-driven solutions.
Looking ahead, TELUS has reaffirmed its financial targets for 2025, projecting revenue growth of 2-4% and adjusted EBITDA growth of 3-5% in its TTech segment. This outlook is supported by a strong demand for its bundled service offerings and a commitment to operational excellence.
Overall, TELUS's first-quarter results highlight its resilience and adaptability in a challenging market. As it continues to invest in customer service and technological advancements, the company is well-positioned to sustain its growth trajectory and deliver value to its stakeholders.
