TELUS posts 660 million Canadian dollars loss after health-business write-down
Canadian telecommunications company TELUS reported a third-quarter net loss of 660 million Canadian dollars after recording a 800 million Canadian dollars noncash goodwill impairment in its health business. Revenue and free cash flow declined. Management set a target of 900 million Canadian dollars in annual cash savings by the end of 2028 and plans to direct asset-sale proceeds toward debt reduction.
Economics & Markets··Midday
A health-business charge weighs on TELUS
TELUS, a Canadian telecommunications company, reported a third-quarter net loss of 660 million Canadian dollars on November 6, compared with a 431 million Canadian dollars profit a year earlier. The results included a 800 million Canadian dollars noncash goodwill impairment in its health business. Loss attributable to common shareholders reached 667 million Canadian dollars, or 0.42 Canadian dollars per share, compared with earnings of 0.32 Canadian dollars per share a year earlier.[1], [2]
Cash generation declines as spending rises
Total revenue including other operating income fell to 5,026 million Canadian dollars from 5,106 million Canadian dollars. Adjusted net income declined 32 per cent to 251 million Canadian dollars. Free cash flow decreased to 396 million Canadian dollars from 611 million Canadian dollars, while capital expenditure rose to 701 million Canadian dollars from 652 million Canadian dollars. Operating cash flow was 1,485 million Canadian dollars, slightly below 1,493 million Canadian dollars a year earlier.[1]
Savings and asset sales target debt reduction
Management aims for 900 million Canadian dollars in annual cash savings by the end of 2028, with 80 per cent from core telecom operations and 20 per cent from platforms. Planned monetisations of health and agriculture assets would fund debt reduction. Net debt was 3.6 times adjusted earnings before interest, taxes, depreciation and amortisation. The company targets a ratio of 3 or less by the end of 2028; the savings and leverage figures are management targets.[1]
