Telus Earnings Fall With Rise in Restructuring and Other Costs
By Robb M. Stewart
Telus logged a sharp drop in earnings in the first quarter as an increase in subscribers was offset by higher financing, restructuring and other expenses.
The Canadian communications-technology company recorded net income of 140 million Canadian dollars ($102 million), or $0.09 a share, down 38% from C$224 million, or C$0.15, a year earlier. On an adjusted basis that strips out a number of items including income tax-related adjustments and restructuring and other costs, per-share earnings came in at C$0.26, ahead of the C$0.24 mean estimate of analysts polled by FactSet.
Telus's first-quarter profit was dented by higher depreciation and amortization from network leases and increased real-estate consolidation, as will as a rise in financing costs with a rise in average long-term debt balances outstanding. The company also was hit with a rise in restructuring costs as it cut its workforce, scaled back on real estate and moved to made other cost-cutting moves.
Revenue for the first quarter slipped 0.6% to C$4.93 billion, where analysts had penciled in C$5.01 billion. The fall in revenue was driven by lower service sales in the company's technology-solutions and international segments.
Telus, whose operations span wireless, data, internet, voice and television, logged free cash flow for the three months of C$396 million, a fall from C$535 million in the same period last year.
Total telecom subscriber connections increased 6.8% to almost 19.2 million, and Telus said mobile and fixed customer growth of 209,000, up 46,000 over last year, was its strongest first quarter on record.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
May 09, 2024 07:36 ET (11:36 GMT)
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