By Adriano Marchese

Telus logged better-than-expected profit and revenue thanks to its technology solutions segment which offset a slowdown in mobile subscribers in the fourth quarter.

The Canadian telecom giant on Thursday posted net income of 320 million Canadian dollars ($223.6 million), or C$0.24 a share, up from C$310 million, or C$0.20 a share, in the comparable quarter a year ago.

Adjusted earnings were C$0.25 a share. According to FactSet, analysts were expecting C$0.22 a share.

Operating revenues rose to C$5.38 billion from C$5.2 billion, topping analysts expectations of a rise to C$5.24 billion.

Telus credits the rise to an increased performance at its TTech segment, also known as Telus Technology Solutions, which covers telecommunications and technology products. In the quarter, TTech operating revenues rose 4.1% thanks largely to efficiency improvements and higher margins per user.

The growth was tempered by rate reductions across its mobile network and lower fixed legacy voice and TV services revenues due to technological substitution.

In the period, Telus mobile phone and connected device additions were 70,000, down from 126,000 a year earlier. Analysts expected a decline in subscribers, which has been the theme for the past quarters thanks to increased competition among Canadian carriers, but not as precipitously, forecasting 81,400 additions.

Internet additions were 37,000 new customers, up slightly from 36,000 a year ago, and topping expectations of 31,200 new additions.

On the healthcare front, Telus said it saw a 9.6% increase in healthcare lives covered compared with a year ago, bringing it to 76.2 million.

Telus' board declared a quarterly dividend of C$0.4023, a 7% increase over the prior-year period's dividend rate.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

February 13, 2025 07:19 ET (12:19 GMT)

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