(Vancouver) Telus expects a strong increase in free cash flow and double-digit revenue and profit growth in the coming fiscal year as it completes the expansion of its broadband networks and strives to make the most of its acquisitions, including in its healthcare division.
The telecommunications group said on Thursday it expects its free cash flow to rise 60% from a year ago to $2 billion this year as its capital spending intensity falls to one. historic low.
“We expect a very significant decline in base capital spending,” Chief Executive Darren Entwistle said in a conference call with analysts.
Lower expenses and expected gains in several divisions should lead to operating revenue growth of 11% to 14% and an increase in adjusted earnings before deductions of 9.5% to 11.0%.
“Our distinctive asset base, unparalleled customer experience, world-class networks and unique growth areas give us confidence in our strong business prospects,” said Entwistle.
Telus reported net income attributable to shareholders of 248 million, or 17 cents per share, for the quarter ended Dec. 31. By comparison, it made a profit of $644 million, or 47 cents a share, for the same period last year — in which it enjoyed a $410 million gain from the sale of its solutions business. financial.
Operating and other revenue totaled $5.1 billion, down from $4.9 billion in the last three months of 2021.
On an adjusted basis, Telus posted earnings per share of 23 cents in the fourth quarter, the same as the same period a year earlier.
Analysts were expecting earnings per share of 28 cents, according to forecasts compiled by financial data firm Refinitiv.
While earnings per share were down, overall results were in line with Royal Bank’s expectations, analyst Drew McReynolds said, while the company’s capital spending forecast was slightly better than expected.
“Overall, we view the results as neutral for equities at their current valuation. »