Telus Corp. is reporting a 75 per cent year-over-year drop in profits in its latest quarter, despite a solid revenue boost and record telecom customer growth. A Telus sign is shown in Toronto on Thursday, Feb. 11, 2021. THE CANADIAN PRESS/Frank Gunn
VANCOUVER – Telus Corp. saw a 74 per cent year-over-year drop in profit in its latest quarter, despite a solid revenue boost and record customer growth.
Net income attributable to shareholders fell to $136 million in the quarter ended Sept. 30 from $514 million in the same period the year before, the telecommunications company said.
Telus attributed the decrease to costs related to restructuring after it announced in August it would cut 6,000 jobs due to issues around regulation and competition.
The Vancouver-based company said operating revenues rose 7.5 per cent in its third quarter to $4.99 billion from $4.64 billion a year earlier.
Adjusted basic earnings fell nearly 27 per cent to 25 cents per share from 34 cents per share, but slightly beat analyst expectations of 24 cents per share, according to financial markets data firm Refinitiv.
Telus said that net customer growth hit a quarterly record of 406,000, an increase of 59,000 from the year before that it said was driven by demand for bundled services.
Results were overall in line with expectations, as the full benefits of Telus’ restructuring plans have yet to be reflected in results, Desjardins analyst Jerome Dubreuil said in a note to clients on Friday.
Shares in the company were up 2.54 per cent at $24.26 in mid-day trading.
This report by The Canadian Press was first published Nov. 3, 2023.
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