Telus International cuts FY23 EPS view to 90c-97c from $1.20-$1.25

Consensus $1.56. Cuts FY23 revenue view to $2.70B-$2.73B from $2.97B-$3.03B, consensus $3.87B. Vanessa Kanu, CFO, said, “The magnitude of the headwinds we’re experiencing and our preview of second quarter performance data prompted a revision to the full-year outlook for 2023 to better reflect our updated expectations for the remainder of the year. We’ve actioned significant cost efficiency programs, including staff reductions to address lower service volumes in the technology vertical. Additionally, we are driving further automation and generative AI enabled solutions to further optimize our cost structure. The benefits of these efficiency programs will help mitigate the near-term challenges we are facing. Moreover, we do see meaningful opportunities as it relates to digital transformation, generative AI adoption, and the continuing critical importance of differentiated digital customer experience solutions in the market that we believe will be a tailwind for TELUS International’s long-term growth and profitability.”