Telus Lowers 2023 Annual Guidance; Shares Q2 Subscriber Numbers

Vancouver-based Telus today announced it has updated its annual projections for 2023, a decision that reflects the revised yearly outlook of subsidiary Telus International. This news follows increased customer growth in Q2 2023, particularly in mobile phones and connected devices.

Telus International has lowered its revenue forecast for the full year to a range of US $2.7 billion to US $2.73 billion and adjusted EBITDA to US $575 million to US $600 million. This revision is “due to more pronounced than anticipated demand challenges in the near-term from certain clients within the technology vertical.”

The subsidiary of Telus says it “builds and delivers next-generation digital solutions to enhance the customer experience (CX) for global and disruptive brands. The company’s services support the full lifecycle of its clients’ digital transformation journeys and enable them to more quickly embrace next-generation digital technologies to deliver better business outcomes.”

With the global economic outlook still yet to fully recover, companies are cutting costs left, right and centre. Now it seems the domino effect has resulted in lower guidance for Telus International.

Following this revised outlook, Telus has now set its sights on consolidated operating revenue growth of 9.5 to 11.5 per cent (down from 11 to 14 per cent) and adjusted EBITDA growth of 7 to 8 per cent (revised from 9.5 to 11 per cent). Despite this revision, the financial guidance for Telus’ TTech operating segment remains unchanged for 2023.

“Global economic pressures have prompted Telus International to update its financial annual outlook, resulting in Telus revising its full-year operating revenue and adjusted EBITDA growth guidance.” Despite the pressures, he emphasized that Telus International remains optimistic about medium and long-term growth, thanks to digital transformation and the adoption of AI solutions,” said Darren Entwistle, President and CEO of Telus in a statement.

Alongside this announcement, Telus also released promising customer growth figures for Q2 2023. Total mobile and fixed customer growth stood at 293,000, marking an increase of 46,000 from last year and representing the best second quarter on record. This growth was propelled by strong demand for Telus’ portfolio across mobility and fixed services.

Key growth metrics include 110,000 net additions in mobile phone subscriptions, 124,000 in connected devices, and 59,000 across Internet, TV, and security services.

Telus is set to announce its full Q2 2023 operating and financial results on August 4, 2023.

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