TELUS Corporation released its unaudited results for the third quarter of 2021.
Consolidated operating revenues and other income increased by 6.8% over the same period a year ago, reaching C$4.3 billion while EBITDA increased by 7.6%, reaching C$1.5 billion. Moreover, net income increased by 11.5%, reaching C$358 million, with the free cash flow of $203 million also increased by $42 million or 26% compared to last year.
This growth reflects higher internet and third-wave data service margins from subscriber base growth and expanded services; growth in network revenue from increases in mobile phone and connected devices subscriber bases; growth in mobile equipment margins; an increased contribution from digitally-led customer experiences of TELUS International (DLCX) segment; and lower debt expense.
“Our team once again achieved strong operational and financial results in the third quarter,” said Darren Entwistle, president and CEO. “Our robust performance reflects the effectiveness of our globally leading customer-centric culture and broadband networks, underpinned by our highly engaged team and their passion for delivering outstanding connected experiences. This contributed to leading total customer net additions of 320,000, an all-time quarterly record for TELUS, underpinned by industry-best client loyalty across our key mobile and fixed product lines. Notably, blended mobile phone, PureFibre internet, Optik TV, Security and voice churn are all below one percent year-to-date.”
Continued strong operating momentum in TELUS International (DLCX) and TELUS Health were recorded with double-double digit revenue growth, driven by a combination of robust organic customer growth and acquisitions. DLCX operating revenues increased by $126 million or 27% while health services revenues increased by $14 million or 12% in Q3.
Quarterly dividend also increased to $0.3274 per share, up 5.2% YoY as TELUS continues to execute on its leading, multi-year dividend growth program, supported by healthy cash flow generation and robust capital structure.
“Future dividend growth and affordability will be supported by EBITDA growth and value creation in our TI, Health, and Agriculture businesses, as well as by lower future capital expenditures, consistent with the preliminary guidance we have provided for significantly reduced capital investments of $2.5 billion or less, beginning in 2023, and the meaningful resulting free cash flow expansion,” expressed Darren.
“Our third-quarter performance was backed by our strong digital capabilities and superior service offerings, over our world-leading wireless and fiber broadband networks,” added Darren.
TELUS has been named the fastest mobile operator in Canada by Ookla for the fifth year in a row in their Q3 Canada Market Report for 2021. Also, TELUS earned the top spot in six of seven categories in Opensignal’s August 2021 Mobile Network Experience: Canada Report and was previously recognized as having the fastest mobile network in the world in 2020.
“Looking forward, our team is excited to continue delivering on our track record of execution excellence and to further advance our unique growth strategy. Powered by our leading and diversified asset base, at home and around the globe, we are in a strong position to continue to deliver superior operating and financial outcomes, further buttressing our return of capital objectives along with an eye on maintaining a strong balance sheet to support long-term value creation for our investors,” concluded Doug French, EVP and CFO, TELUS.