Telus Q4 2022: Revenue Up, But Profits Down 60%

Telus today announced its unaudited financial results for the fourth quarter and full year that ended December 31, 2022.

For Q4 2022, the national telecom operator reported consolidated operating revenues of $5.1 billion, up 3.8% year-over-year from Q4 2021 and representing its strongest fourth quarter since 2010.

Across all of its segments, Telus reported a net income of $265 million, down a massive 60% from the same period last year. Basic earnings per share (EPS) dropped 64% to $0.17, while Unadjusted EBITDA was down 15% to $1.6 billion.

“These decreases were driven by the after-tax impacts of lower other income and higher financing costs, as well as higher goods and services purchased, employee benefit expense and depreciation and amortization; and, as it relates to EPS, higher shares outstanding,” Telus explained.

For the full year, Telus said its consolidated operating revenues, adjusted EBITDA, and free cash flow grew by an industry-leading 8.6%, 9.5%, and 64%, respectively.

Telus reported industry-leading net customer additions of 301,000 for the quarter, up 29,000 year-over-year, including a total of 112,000 new mobile phone subscribers.

In comparison, fellow telecom giant Rogers recently reported net new wireless additions of 193,000 for the same period, while Bell recorded 122,621 new subscribers.

For 2022 as a whole, Telus reported all-time high annual net customer additions of 1,043,000, exceeding one million for the first time. The company saw its highest net wireless additions since 2010, at 401,000 new customers, along with yet another best-ever year for fixed subscriber growth, at 274,000.

Telus’s mobile network revenue rose by $104 million (or 6.5%) year-over-year in Q4. Revenue from wireless network equipment and other services was also up, jumping by $61 million (or 9.7%).

Telus’s mobile subscription churn rate for Q4 was 1.22%, slightly higher than 1.04% in the same period last year.

“Throughout 2022, TELUS achieved strong operational and financial results across our business, including leading our North American peer group with respect to 2022 Operating Revenues, Adjusted EBITDA and Free Cash Flow growth,” said Telus President and CEO Darren Entwistle.

“This is a trend the TELUS team has consistently demonstrated over the long-term. Our robust performance in the fourth quarter, and for the full year, reflects the chemistry of our globally leading broadband networks and customers first culture, driving our hallmark combination of profitable customer growth, alongside strong financial results.”

Entwistle also touted that Telus was repeatedly named the fastest mobile network in Canada by Opensignal and U.S.-based Ookla.

“In the fourth quarter, our team delivered strong operational and financial results, demonstrating our ongoing cadence of execution excellence. Indeed, in 2022, we achieved our financial targets, including Operating Revenues and Adjusted EBITDA growth, supported by our record customer growth on our leading mobile and fixed broadband networks, diversified and powerful asset mix, and our company-wide focus on delivering exceptional customer service,” said Doug French, Executive Vice President and CFO at Telus.

“For the year, cash flow from operations increased by nearly 10 per cent, and free cash flow increased by 64 per cent to nearly $1.3 billion, surpassing our original target for 2022.”

Telus’s Board of Directors has declared a quarterly dividend of $0.3511 per share on all of the company’s issued and outstanding common shares, payable on April 3, 2023, to holders of record at the end of business on March 10, 2023.