Telus Q4 Profit More Than Doubles

Telus (TSE: T) (NYSE: TU) reported higher revenues and profits in the fourth quarter, boosted by the sale of its financial solutions business.

Revenues & Earnings

Operating revenues and other income came in at C$4.88 billion for the quarter ended December 31, up 20% from C$4.06 billion in the prior-year quarter. EBITDA increased 40.8% to C$1.88 billion, while Adjusted EBITDA increased 7.6% to C$1.52 billion.

Net income was C$663 million (C$0.47 per share) in the fourth quarter of 2021, an increase of 144.6% from C$271 million (C$0.20 per share) in the same quarter last year.

Excluding some items, Telus’ earnings came in at C$0.23 per share in Q4 2021, up from C$0.22 per share in Q4 2020.

Mobile phone average billing per unit (ABPU) was C$70.09 in the fourth quarter, compared to C$69.70 in the prior-year quarter.

The Canadian telecom company reported 193,000 net additions of mobile customers and 79,000 wireline customers.

CEO Commentary

Telus president and CEO Darren Entwistle said, “Our performance in the fourth quarter, and for the full year, was characterized by our hallmark
combination of robust, high-quality and profitable customer growth, alongside strong financial results. The quarter concluded another year of industry-leading customer growth, with all-time record total net customer
additions of 960,000, including another best-ever year for Fixed customer growth of 255,000 reflecting the potency of our expansive PureFibre network capabilities. Furthermore, over the last two years we have
added over 1.7 million customer additions, demonstrating the significant economic value we are creating through the strong demand for our leading product portfolio.”

Wall Street’s Take

On February 8, Scotiabank analyst Jeff Fan kept a Buy rating on T with a C$36. This implies 14.5% upside potential.

Overall, consensus on the Street is that Telus is a Moderate Buy based on two Buys. The average Telus price target of C$34.50 implies an upside potential of about 9.7% to current levels.

TipRanks’ Smart Score

Telus scores a 7 out of 10 on TipRanks’ Smart Score rating system, indicating that its stock is likely to perform in line with the overall market.

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