Telus Reports Second-Quarter Profit Decline
Telus reports a decline in second-quarter profit, primarily due to higher costs, but experiences revenue growth driven by an influx of new customers.
Telus, the Canadian telecom major, announced a significant decrease in second-quarter profit, primarily attributed to higher costs. However, despite this decline, the company experienced revenue growth fueled by an influx of new customers.
Telus reported a net income of 196 million Canadian dollars ($146.8 million) for the quarter, equivalent to C$0.14 per share. This marks a decline from the previous year's profit of C$498 million or C$0.34 per share.
The decrease in profit can be mainly attributed to increased depreciation and amortization expenses related to acquired capital assets, amplified costs from expanding its broadband network, and higher financing expenses on its long-term debt.
Adjusted Earnings and Revenues
On an adjusted basis, Telus saw a 41% decrease in per-share earnings, amounting to C$0.19. Analysts' predictions, according to a FactSet poll, were slightly higher at C$0.22 per share.
Despite the decline in profit, Telus witnessed a substantial rise in operating revenues and other income. These figures increased by over 12% and amounted to C$4.95 billion for the period, which aligns with analysts' forecasts.