TELUS Corporation today released its unaudited results for the second quarter of 2024. Consolidated operating revenues and other income increased by 0.6 per cent over the same period a year ago to $5.0 billion. This growth was driven by higher service revenue in our TELUS technology solutions (TTech) segment offset by lower service revenue in our TELUS digital experience segment (TELUS Digital), formerly known as Digitally-led customer experiences – TELUS International. Within TTech, higher revenue from mobile network, residential internet and security services, driven largely by subscriber growth, higher organic growth across multiple lines of business in health services and higher agriculture and consumer goods service revenues related to business acquisitions and improving organic growth across certain lines of business in agriculture services was partially offset by declines in TV and fixed legacy voice services revenues due to technological substitution. The decline in TELUS Digital operating revenues were from lower external revenues reflecting macroeconomic conditions. See Second Quarter 2024 Operating Highlights within this news release for a discussion on TTech and TELUS digital experience results.
"In the second quarter, our team built upon our track record of execution excellence to drive industry-leading customer growth and strong financial results, leveraging our premier portfolio of assets, coupled with a relentless pursuit to drive cost efficiency and effectiveness," said Darren Entwistle, President and CEO. "Our results demonstrate how we are delivering sustainable profitable growth, underpinned by our consistent strategic focus on margin-accretive customer expansion, globally leading broadband networks and customer-centric culture. This enabled a record second quarter, with total customer net additions of 332,000, up 13 per cent, year-over-year, including healthy mobile phone net additions of 101,000, and record second quarter customer additions for both connected devices of 161,000 and total fixed net additions of 70,000. Our team's passion for delivering customer service excellence once again contributed to leading loyalty across our key product lines. Notably, postpaid mobile phone churn was 0.89 per cent, alongside PureFibre churn circa one per cent, further showcasing the consistent potency of our unmatched bundled product offerings across Mobile and Home, over our industry-best PureFibre and wireless broadband networks."
"Today, TELUS International, which will formally complete its rebranding to TELUS Digital Experience (TELUS Digital) in the third quarter, reported its second quarter results that reflect a macroeconomic and operating environment that remains challenged. Notwithstanding the persistent headwinds, TELUS Digital continues to generate consistently strong cash flows that are being leveraged to reinvest into the business to support the reacceleration of top line growth along with an ongoing focus on surfacing cost efficiency initiatives to optimize its operations. As our TELUS Digital team advances opportunities with existing and prospective clients, their comprehensive and growing suite of AI solutions is capturing customer demand as demonstrated by the double-digit revenue growth within its AI Data Solutions line of service in the first half of this year. Furthermore, the strength of the generative AI fueled solutions, and tools created for TELUS across all areas of our business, fortify their go-to-market efforts with other clients. While we are encouraged by these positive indicators of longer-term growth opportunities, the challenged near-term environment impacts the expected levels of revenue and profit for 2024, leading TELUS Digital to revise its annual outlook for the full year. Our confidence in TELUS Digital remains steadfast as the business continues its evolution to a technology-centric model with significant opportunities in respect of digital transformation. This includes driving innovative generative AI solutions for our customers to elevate leading and differentiated digital client experiences in the market, creating a positive tailwind for TELUS Digital's medium- and long-term growth."
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