By Adriano Marchese

Telus reported a higher profit and better-than-expected revenue, thanks to stronger performance from its core segments in the quarter.

The Canadian telecom giant posted net income attributable to shareholders that rose to 280 million Canadian dollars ($202 million), or C$0.19 a share, from C$136 million, or C$0.09 a share, in the comparable quarter a year ago.

Adjusted earnings were C$0.28 a share. According to FactSet, analysts were expecting C$0.24 a share.

Operating revenues and other income rose to C$5.1 billion from C$5.01 billion, topping expectations of a more modest rise to C$5.04 billion.

Of its core segments, the company said its technology solutions business, TTech, saw operating revenues rise 1.9%, largely from increases in its mobile network and mobile equipment and other services revenues. The company noted that it expects operating revenue to be slightly lower than previously expected for the full year due to competitive market conditions.

Its mobile products and services segment saw revenue increase 0.7%, thanks to more mobile phone additions, but offset by lower average revenue per unit, which has been an industry-wide thorn in the sides of telecom companies for several quarters now due to increased competition.

Health services also saw a revenue increase, rising 4%, driven primarily by pharmacy upgrades, virtual pharmacy sales and increased demand for health benefits management services, it said.

Overall, Telus added fewer users across all its services in the quarter than a year ago, with 347,000 net customer additions, down 59,000 over the same period last year. This includes 130,000 and 159,000 new mobile phone and connected devices, respectively, with a churn of 0.9% for its postpaid mobile phones.

According to FactSet, analysts had expected 131,500 new mobile phone additions and 149,000 new connected devices.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

November 08, 2024 07:21 ET (12:21 GMT)

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