EPS of 25c beat estimates of 22c; revenue of $5.38B beat estimates of $5.23B. EBITDA of $1.83B beat estimates by a fraction. Telus posted solid 4Q results, with revenue up 3.5% as a 4.9% gain in TTech sales offset a 4.6% drop in TELUS Digital, with the latter down on slack spending by large social-media customers. TTech rose on pockets of strength, including 3.5% growth in fixed-data services and a 10% gain in Health Services. The wireless results reflected heavy competitive pressure, with 4Q Mobile Network sales down 0.1%, though low-margin equipment sales rose 11.3%. Heavy promotional pressure drove down average revenue per user by 3.6% in 4Q. Service growth was also crimped by a migration to lower-priced plans and a decline in roaming fees, while phone net additions of 70,000 were well below 3Q and 4Q23. Telus sees 2025 free cash flow up 8.5% to $2.15 billion on a 5.1% decline in capital spending to $2.5 billion. No miracles here, but certainly a brighter light in the sector.
5i Research Answer: