TELUS Reports 10% Growth In Q2 Revenue And EBITDA, Reiterates FY21 Outlook

TELUS Corp TU reported second-quarter operating revenues and other income growth of 10.3% year-on-year to C$4.1 billion.
Total subscriber connections grew 5.9% Y/Y to 16.3 million.
The robust performance reflected the effectiveness of its globally leading customer-centric culture and broadband networks, CEO Darren Entwistle stated.
In the quarter, it added 223,000 new customer additions, up 82,000 over last year, and inclusive of 89,000 mobile phones, 84,000 connected devices, 30,000 internet, 19,000 security and 11,000 TV customer connections.
Notably, blended mobile phone, voice, PureFibre internet, and Optik TV churn was below 1% in Q2, while the postpaid mobile phone churn was 0.64%.
Adjusted net income rose 10% Y/Y to C$348 million. Adjusted basic EPS was C$0.26, versus C$0.25 prior year.
Adjusted EBITDA increased by 9.5% Y/Y to C$1.5 billion. Adjusted EBITDA margin contracted 26 bps to 36.2%.
The company generated $210 million in free cash flow.
Outlook: TELUS reaffirmed FY21 revenue growth outlook of up to 10% and EBITDA growth of 8%.
The board declared a quarterly dividend of C$0.3162 per share payable on Oct. 1 to shareholders of record on Sep. 10, reflecting an 8.6% hike Y/Y.
Price action: TU shares are trading higher by 0.72% at $22.24 on the last check Friday.

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