Telus kept adding phone customers over the summer while fewer people cancelled, according to third quarter results the company released on Friday, with its wireless business holding steady even as the rest of the company goes through some big changes.
Telus added 84,000 net new phone customers between July and September, up from 82,000 at the same time last year. That’s well ahead of Bell, which added about 24,000 postpaid customers, and Rogers, which added just 6,000. Quebecor, which owns Freedom Mobile, Fizz and Videotron, still grew the fastest with nearly 137,000 new lines.
Customers are also sticking around longer, with monthly phone churn, the share of customers who cancel each month, falling to 1.01 per cent. That’s a three-year low and down 0.10 percentage points from a year ago. Telus credits better network quality, its retention efforts and promotions. Gross phone additions, which count every new signup before cancellations, dropped by 24,000 to 395,000, as Telus chased customers on pricier plans rather than going after everyone with deep discounts.
ARPU, or average revenue per user, held flat at $57.22 a month after a long stretch of declines. Telus says more people are on unlimited data and Canada-U.S.-Mexico plans, which makes bills more predictable and cuts down on surprise roaming and overage charges. Mobile network revenue rose 1 per cent thanks to the larger customer base and steadier ARPU.
Outside of phones, Telus added 289,000 connected devices, like vehicle trackers and other smart gear, which is 120,000 more than a year ago. Home internet additions were 10,000, down 30,000, again because Telus is focusing on higher-paying customers.
The bigger picture for Telus is less rosy, with total revenue falling 2 per cent to $5.0 billion and adjusted EBITDA, a common measure of operating profit, dropping 5 per cent to $1.76 billion. Telus also took an $800 million write-down on its health business, which it’s trying to sell, and that pushed the company to a $660 million loss for the quarter. Adjusted net income fell 32 per cent to $251 million, and free cash flow dropped 35 per cent to $396 million.
Telus is also launching a cost-cutting plan that aims to save about $900 million a year by the end of 2028, and it wants to sell off side businesses like Telus Health and its agriculture unit soon. The company says it’s still on track for the targets it set for 2026.
For Telus customers, the takeaway is simple: the company is holding on to more subscribers and ARPU has stopped falling, while it trims costs elsewhere. If you’re shopping around, our best cell phone plans in Canada guide has the latest pricing from the Big 3 and their flanker brands.
Are you sticking with Telus, or did you switch for a better deal? Let us know in the comments.
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