TELUS Q2 2025: Unpacking Contradictions in AI, Dividends, and 5G Progress

AI's impact on TELUS operations, dividend growth plan and leverage targets, dividend and free cash flow, wireless pricing strategy, and 5G rollout and network traffic are the key contradictions discussed in TELUS's latest 2025Q2 earnings call



Customer Growth and Retention:
- TELUS reported a total mobile and fixed customer growth of 198,000 in Q2, driven by mobile phone and connected device additions of 167,000 and fixed customer additions of 31,000.
- The growth was supported by customer service excellence, resulting in consistent low churn rates, with postpaid mobile phone churn at 0.9%.
- This was achieved through strategic expansion of TELUS PureFibre connectivity and bundling of wireless and wireline services.

Wireless Revenue and ARPU Challenges:
- Wireless network revenue was down slightly due to a 3.3% decline in ARPU, reflecting ongoing competitive pressures and lower overage and roaming revenues.
- The company observed improved ARPU trends quarter-over-quarter across new activations, rate plan changes, and customer renewals.
- The focus on economic margin-accretive customer growth and AI-enabled cost efficiencies were drivers for mitigating revenue pressures.

Wireline and Broadband Expansion:
- TELUS delivered 27,000 Internet net additions alongside industry-leading fixed data services revenue growth of 73%.
- The growth was underpinned by the leading PureFibre offering and strategic leveraging of superior bundled products and services on a national basis.
- This strategy differentiates TELUS from competition and drives extensive socioeconomic benefits through smart broadband network builds.

TELUS Health and Digital Growth:
- TELUS Health achieved operating revenue and adjusted EBITDA growth of 16% and 29%, respectively, with a year-over-year increase in global lives covered to nearly 160 million.
- The growth was driven by product enhancements, expanded sales channels, and effective cost management through technology and synergy optimization.
- The integration of LifeWorks and Workplace Options, along with strategic cross-selling and AI initiatives, contributed to the momentum in TELUS Health's operations.