TELUS Corporation (TSX:T) said its profit shrank by 75% in the third quarter due to restructuring charges and higher depreciation, amortization and financing costs.
The Vancouver, British Columbia-based company, whose subsidiaries offer a range of telecommunications, health, safety, and security products and services, reported profits of C$137 million for the quarter, down from C$551 million in the year-ago quarter.
Earnings per share declined 75.7% from C$0.37 to C$0.09, missing analysts’ forecast of C$0.27.
Telus’ revenue rose 7.5% over the year-ago quarter from C$4.64 billion to C$4.99 billion, missing estimates of about C$5.15 billion.
It added 406,000 new customers, up 17% year-over-year and a quarterly record.
It also reiterated its full-year 2023 outlook, continuing to expect sales growth of 9.5% to 11.5% and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) growth of 7% to 8%, and said it was increasing its dividend to $0.3761, up 7.1% over the year-ago quarter.
Telus CEO Darren Entwistle said the company continued to execute the extensive efficiency and effectiveness measures it announced in August across the business.
“The incremental cost savings are expected to begin to be realized in the fourth quarter, with the full run-rate expected by the second quarter of next year,” Entwistle said in a statement.
Telus’ Toronto-listed shares were flat at the opening bell on Friday at C$23.68.
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