TELUS Corporation (TU) Q2 2024 Earnings Call Transcript

TELUS Corporation held its Q2 2024 earnings call on August 2, 2024, revealing strong customer growth and financial results. The company achieved total customer net additions of 332,000, representing a 13% year-over-year increase, with healthy mobile phone net additions and record second quarter customer growth for both connected devices and total fixed net additions.

Key Themes and Trends

Strong Customer Growth: TELUS reported record customer growth, driven by a combination of healthy mobile phone net additions and record second quarter customer growth for both connected devices and total fixed net additions. This growth is a testament to the company's customer-centric approach and its focus on delivering superior service offerings and digital capabilities over its world-leading wireless and broadband fiber networks. Financial Performance: The company achieved resilient EBITDA growth of 5.6%, with margin expansion of 170 basis points, reflecting the progression of its ongoing transformational efficiency programs. TELUS also reported a record second quarter with total wireline customer growth, driven by robust Internet net additions and strong growth in its TV product line. Strategic Focus: TELUS is doubling down on its disciplined focus on profitability, with a clear emphasis on profitable margin accretive customer growth. The company is also investing in its product development and digital transformation efforts, including the development of a device-agnostic smart home platform and the expansion of its IoT services.

Investor Insights

During the Q&A session, key shareholders and investors raised concerns about the competitive pricing environment and the potential impact on wireless ARPU. TELUS executives responded by emphasizing their focus on AMPU and bundling to drive economic outcomes, as well as their ongoing efforts to drive lower cost to serve and leverage their significant digital capabilities.

Outlook and Future Plans

Looking ahead, TELUS is focused on driving strong, sustainable and margin-accretive growth while maintaining a focus on lowering its cost to serve. The company is also exploring opportunities for monetization of its emerging businesses, particularly in the areas of health and agriculture, and is committed to leveraging its digital and AI capabilities to drive innovation and improve operational efficiency.

In conclusion, TELUS Corporation's Q2 2024 earnings call highlighted the company's strong financial performance, strategic focus on customer growth and profitability, and its ongoing investments in digital transformation and product development. With a clear emphasis on delivering superior service offerings and digital capabilities over its world-leading networks, TELUS is well-positioned for continued growth and innovation in the years to come.