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Canada's Telus Q3 service revenue falls on digital weakness

By Reuters News


Overview

  • Canada telecom provider's Q3 service revenue declined 1% yr/yr as digital segment weakened

  • Adjusted EPS for Q3 fell 33% yr/yr; adjusted net income dropped 32%

  • Company launched C$900 mln annualized efficiency program, reaffirmed 2026 guidance


Outlook

  • Telus reaffirms full-year 2026 guidance issued with Q2 results

  • Company targets annualized cash savings of about C$900 mln exiting 2028 via efficiency program

  • Company expects capital expenditures of about C$2.6 bln and free cash flow of about C$1.8 bln for 2026


Result Drivers

  • DIGITAL SEGMENT WEAKNESS - TELUS said lower client service volumes from two hyperscale clients and ramp-downs in trust and safety and AI/data solutions led to declines in TELUS Digital revenue and EBITDA

  • ONE-TIME ITEMS - TELUS said prior-year real estate gains and other one-time items contributed to the decline in Adjusted EBITDA

  • HEALTH SEGMENT IMPAIRMENT - TELUS recognized a non-cash goodwill impairment of C$800 mln for TELUS Health due to updated growth expectations and market conditions amid active divestiture process


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted Net Income

C$251 mln

Q3 Net Loss

C$660 mln

Q3 Adjusted EBITDA

C$1.76 bln

Q3 EBITDA

C$1.55 bln

Q3 Free Cash Flow

C$396 mln


Reuters Recommended Reads

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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