Telus Corp.

Overview Key strengths Key risks One of the three-largest national wireless providers in Canada and the incumbent telecom provider in Western Canada, with a combined base of more than 19 million telecom subscriptions Credit metrics remain elevated through 2024 owing to ongoing restructuring costs, wireless spectrum investments, a high dividend payout, and slower growth at non-telecom operations Fiber-to-the-home (FTTH) deployment to over 80% of the company?s high-speed internet footprint strengthens long-term competitive position and improves cost profile Rising competitive risks from a bigger telecom rival-- Rogers Communications Inc. (post-Shaw)--and to a lesser extent from Videotron Ltee following its acquisition of Freedom Mobile Industry-leading revenue and earnings growth supported by customer retention and focus on higher value customers Weak track record

...Telus Corp.'s strong execution should increase steady topline growth despite increasing competition and macroeconomic pressures. In 2023, Telus Corp.'s revenues increased by 9.3%, led by strong growth in the company's telecom segment, which is composed of about 85% consolidated revenue and the majority of the company's cash flow. Specifically in 2023, mobile network segment and fixed-data services segment revenues increased by 5.1% and 5.3%, respectively, driven by significant steady subscriber growth and a focus on bundling. Telus should be able to leverage its strong network position (fiber broadband availability to 3 million- plus homes and businesses representing over 80% of its internet footprint; shared nationwide 4G-A and 5G wireless radio networks with Bell Canada) and, similar to other telecom operators in Canada, benefit from immigration-led population growth. However, despite this, S&P Global Ratings expects Telus' wireless operations will face pressure, considering the aggressive...

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