EPS of 23c beat estimates of 22c; revenue of $5.01B missed estimates by 2%. Telus' revenue fell 0.9% on mixed segment results, with mobile network revenue up just 1% to 35% of sales amid a constrained promotional market, while equipment sales fell 9.5%, presenting a top-line drag. Fixed data services rose 0.6% on 21,000 net additions and growth in average revenue per customer, with gains likely to persist on fiber penetration and footprint expansion. Telus Health once again led with growth of 11.1% on acquisitions and recurring-revenue gains from payor and provider solutions. Telus Digital fell 2.5% on forex headwinds and weak spending at select tech clients, which may persist. Looking ahead, analysts expect further adjusted Ebitda margin gains on AI efficiencies, synergies from the Telus Digital privatization, copper and 3G network shutdowns and rising 2H data-center revenue.
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