TELUS Q4 2024: Divergent Views on Dividends, Wireless Competition, and Data Services Growth

These are the key contradictions discussed in TELUS's latest 2024Q4 earnings call, specifically including: Dividend Strategy and Growth Expectations, Competition in the Wireless Market, and Fixed Data Services Growth Strategy:



Revenue Growth and Profitability:
- TELUS Corporation reported a 5.5% TTech EBITDA growth for 2024, meeting their target range, and 7% TTech EBITDA growth in Q4.
- This growth was driven by strong and profitable customer expansion, margin accretive customer acquisitions, and cost efficiency efforts.

Fixed Data Services Growth:
- TELUS's fixed data services revenue grew 3.5% year-over-year, driven by industry-leading internet net additions of 37,000 in Q4.
- Growth was supported by a diversified product portfolio, customer volume expansion, and strategic pricing.

TELUS Health and Agriculture Growth:
- TELUS Health achieved 10% revenue growth in Q4, with a 20% increase in EBITDA contribution. TELUS Agriculture & Consumer Goods saw 16% revenue growth.
- These growth areas benefited from strategic acquisitions, cross-selling, and strong digitization initiatives.

Capital Expenditure Reduction and Cash Flow:
- CapEx, excluding real estate, declined by $294 million or 11% in 2024, contributing to a lower capital intensity ratio.
- This was part of TELUS's strategy to support free cash flow expansion and sustainable dividend growth.