Q1 2024 TELUS Corp Earnings Call

Operator: The conference is now being recorded. Good day, and welcome to the Telus 2024 Q1 earnings conference call. I would like to introduce your speaker, Robert Mitchell. Please go ahead.

The conference is now being recorded.

Good day and welcome.

The 2020 for Q1 earnings conference call I would like to introduce your Speaker Robert Mitchell. Please go ahead.

Robert Mitchell: Hello, everyone. Thank you for joining us today. Our first quarter 2024 news release, MD&A financial statements, and detailed supplemental investor information were posted on our website earlier this morning. On our call today, we will begin with remarks from Darren and Doug. For the Q&A portion, we will be joined by other members of our executive leadership team. In brief, prepared remarks, slides, and answers to questions contain forward-looking statements. However, actual results could differ materially from those statements.

Robert Mitchell: Hello, everyone. Thank you for joining us today, our first quarter 2024 news release MD&A financial statements and detailed supplemental investor information were posted on our website earlier. This morning on our call today, we will begin with remarks by Darren and Doug for the Q&A portion will be joined by other members of our executive leadership team.

Robert Mitchell: We've prepared remarks slides and answers to questions contain forward looking statements actual results could differ materially from those statements the assumptions on which they are based in the material risks that could cause them to differ are outlined in our public filings with securities commissions in Canada, and the U S, including our first quarter 2024 annual 2023 MD&A the fat.

Robert Mitchell: The assumptions on which they're based and the material risks that could cause them to differ are outlined in our public filings with securities commissions in Canada and the U.S., including our first quarter 2024 and annual 2023 MD&A. With that, over to you, Darren. Thanks, Rick. Hello, everyone.

Darren: Over to you Darren.

Darren Entwistle: In the first quarter, our team once again delivered against our differentiated growth strategy, leveraging our superior asset portfolio, consistent execution track record, and proactive cost efficiency initiatives to deliver industry-leading customer additions and solid financial results. This was achieved against the backdrop of a pretty dynamic operating environment, as you all well know. Our robust performance is underpinned by our strategic focus on margin-accretive customer growth, our customer-centric culture, and our globally leading broadband network.

Darren: Thanks, Rick Hello, everyone in the first quarter our team once again delivered against our differentiated growth strategy, leveraging our superior asset portfolio consistent execution track record and proactive cost efficiency initiatives to deliver industry, leading customer additions and solid financial results as was <unk>.

Darren: Achieved against the backdrop of a pretty dynamic operating environment as you all well know.

Darren: Our robust performance is underpinned by our strategic focus on margin accretive customer growth, our customer centric culture, and our globally, leading broadband networks.

Darren Entwistle: This enabled our strongest first quarter on record, with industry-leading total customer net additions of 209,000, up 28% on a year-over-year basis. Telus' industry-best growth reflects the consistent potency of our operational execution and our unmatched bundled portfolio offerings across mobile and home. Our team's passion for delivering customer service excellence contributed to continued leading loyalty across our key product lines. In the first quarter, Telus achieved resilient EBITDA growth of 4.3% and margin expansion of 170 basis points.

Darren: This enabled our stronger strongest first quarter on record with industry, leading total customer net additions of 209000 up 28% on a year over year basis.

Darren: Talented industry best growth reflect the consistent potency of our operational execution, and our unmatched bundled portfolio offerings across mobile and at home.

Darren: Our passion for delivering customer service excellence contributed to continued lead loyalty across our key product lines.

Darren: In the first quarter Telus achieved resilient EBITDA growth of $4 three present and margin expansion of 170 basis points.

Darren Entwistle: These results reflect the progression of our ongoing transformational efficiency programs that are clearly bearing fruit. Looking at our T-Check mobile results, Telus realized Robots' first quarter customer growth of 146,000 net additions, our strongest first quarter on record.

Darren: These results reflect the progression of our ongoing transformational efficiency programs that are clearly bearing fruit.

Darren: Looking at our G Tech mobile results Telus realized robust first quarter customer growth of 146000 net additions our strongest first quarter on record.

Darren Entwistle: This included healthy mobile phone net additions of $45,000, relatively stable as compared to this time last year. This consistent result was driven alongside our continued focus on profitable, margin-accretive customer growth, and of course, that's a hallmark of our organization. Indeed, we are continuing and now doubling down on this consistent and disciplined approach as we progress through 2024 and beyond. Our efforts in this regard will ensure that our mobile customer growth drives EBITDA and cash flow accretion. That is the formula for this organization. Mobile subscriber growth also included record first quarter connected device net additions of 101,000, which represents a 74% increase over the prior year.

Darren: This included healthy mobile phone net additions of 45000 relatively stable as compared to this time last year.

Darren: This consistent result was driven alongside our continued focus on profitable margin accretive customer growth and of course, that's a hallmark of our organization.

Darren: Indeed, we are continuing and now doubling down on this consistent and disciplined approach as we progressed through 2024 and beyond.

Darren: Our efforts in this regard will ensure our mobile customer growth drive EBITDA and cash flow accretion that is the formula for this organization.

Darren: About subscriber growth also included record first quarter connected device net additions of 101000, which represents a 74% increase over the prior year.

Darren Entwistle: This reflects continued strong momentum with respect to our 5G and IoT B2B solutions. Additionally, our team delivered another quarter of leading loyalty results, which continues to be the hallmark of the Telus team. Blooded mobile phone churn of 1.13% was up against the backdrop of elevated competitive activity relative to seasonal trends and not clearly at a level where this organization is content. However, this represented an industry-best result by a substantial margin of up to 46 basis points versus our peers. Notably, post-paid mobile phone churn was 0.91%, as we have now entered the 11th consecutive year below the 1% level.

Darren: This reflects continued strong momentum with respect to our five G in Iot and <unk> solutions.

Darren: Importantly, our team delivered another quarter of leading loyalty results, which continues to be the hallmark of the Telus team.

Darren: Blended mobile phone churn of one dot one 3% was up against the backdrop of elevated competitive activity relative to seasonal trends and not clearly at a level, where this organization is content.

Darren: However, this represented an industry best result by a substantial margin of up to 46 basis points versus our peers.

Darren: Notably postpaid mobile phone churn was zero dot nine 1% as we now have entered the 11th consecutive year below the 1% level this year.

Darren Entwistle: This is an outstanding result, and it's an outstanding result on a global basis, reflective of the industry-based customer experience that we deliver that's best in class. And it's done time and again by our Telus team delivering over our world-leading broadband networks. And that, for us, is the blend, network excellence combined with the excellence of our people and our digital technology at work. The close on mobile, first quarter ARPU of $59.31 was down year over year.

Darren: He is an outstanding result, and it's an outstanding result on a global basis reflective of the industry based customer experience that we deliver that best in class and it's done time and again by our Telus team delivering over our world, leading broadband networks and that broad is the blurred.

Darren: Org excellence combined with the excellence of our people and our digital technology at work.

Darren: Closed on mobile first quarter, our pool of $59 31, and was down year over year.

Darren Entwistle: This was the result of intense promotional market activity and heightened competition, and in particular, a cross-device financing subsidy. Our flanker brands offer strong customer value in certain segments with lower associated ARPU, but they have attractive AMPU attributes. Through digital transformation, we are lowering our cost to serve across the board, inclusive of supporting a compelling Ampu for BYOD and Flanker Activity. Furthermore, with respect to our premium brand, we are doubling down to reinforce our long-standing and distinctive focus on ampu-accretive loading.

Darren: This was a result of intense promotional market activity and heightened competition and in particular across device financing subsidies.

Darren: Our flanker brands offers strong customer value in certain segments with lower associated <unk>, however, notably attractive and who attributes.

Darren: Through a digital transformation, we are lowering our cost to serve across the board.

Darren: Inclusive of supporting at compelling Abu for B Y O D and flanker activity.

Darren: Furthermore, with respect to our premium brand, we are doubling down to reinforce our long standing and distinctive focus on Abu accretive loading.

Darren Entwistle: Notably, last week, we implemented changes to evolve our go-to-market offerings across our brands and, particularly, in order to enrich our premium Telus offering and afford customers enhanced and differentiated value. These efforts will continue to be supported by our team's passion for winning and retaining profitable customers, whilst remaining highly disciplined in respect of device subsidies. Furthermore, we continue to expect connected devices and IoT to increasingly contribute to network revenue, ARPU, and AMPU growth as we move forward.

Darren: Notably last week, we implemented changes to evolve our go to market offerings across our brands and particularly in order to enrich our premium telus offering and afford customers enhanced and differentiated value.

Darren: These efforts will continue to be supported by our team's passion for winning and retaining profitable customers whilst remaining highly disciplined in respect of device subsidies.

Darren: Furthermore, we continue to expect connected devices and Iot to increasingly contribute to network revenue.

Darren: <unk> and Amp, who grow as we move forward, regardless of the external environment within which we find ourselves.

Darren Entwistle: First quarter ARPU, alongside leading customer loyalty, continues to drive our industry-best mobile phone lifetime revenue, which consistently exceeds our national peers by a considerable margin, a considerable margin of up to 44% again in Q1. Now let's take a look at our TTAC fixed operating results, where Telus delivered another quarter of industry-best total wireline customer growth. Indeed, our team achieved robots first quarter net additions of 30,000. We also continue to drive healthy growth in our TV product line with industry-leading net additions of 19,000, more than double the prior year. Modest residential voice losses of some 8,000 were flat over last year and again represented an industry-best result.

Darren: First quarter ARPA, alongside leading customer loyalty continues to drive our industry best mobile phone lifetime revenue, which consistently exceed our national peers by a considerable margin a considerable margin of up to 44% again in Q1.

Darren: Now, let's take a look at our T chek fixed operating results, where Telus delivered another quarter of industry best total wireline customer grow.

Darren: Indeed, our team achieved robust first quarter Internet net additions of 30000.

Darren: We also continue to drive healthy growth in our TV product line with industry, leading net additions of 19000 more than double the prior year.

Darren: Modest residential voice losses of some 8000 were flat over last year and again represented an industry best result.

Darren Entwistle: Strong and leading security net additions of 22,000 were also similar to last year and continue to reflect our successful multi-product penetration strategy and also reflect a distinctive performance premium on loading versus our peers. And of course, that's reflected as well within the way we bundle security within the FFH portfolio at Telus. Overall, our industry-leading external fixed net additions of 63,000, notably, again, a Q1 record, demonstrate the strength of our unique and highly attractive bundled offers across our unmatched portfolio of products and services.

Darren: Strong and leading security net additions of 22000 were also similar to last year and continued to reflect our successful multi product penetration strategy.

Darren: And also reflect a distinctive performance premium on loading versus our peers and of course, that's reflected as well within the way we bundle security within the F. F H portfolio would tell us.

Darren: Overall, our industry, leading external big net additions of 63000, notably again, a Q1 record demonstrates the strength of our unique and highly attractive bundled offers across our unmatched portfolio of products and services.

Darren Entwistle: These will be further enhanced by continued and significant innovation on our home automation roadmap and the products that are resident within that particular ecosystem, which really does create a level of excitement in terms of new revenue sources to come in the quarters ahead. Our superior bundled offerings are buttressed by our leading customer experience over our ever-expanding, world-leading, pure fiber and wireless broadband network.

Darren: These will be further enhanced by continued and significant innovation on our home automation roadmap and the products that are resident within that particular ecosystem.

Darren: That really does create a level of excitement in terms of new revenue sources to come in the quarters ahead.

Darren: Our superior bundled offerings are buttressed by our leading customer experience over our ever expanding world, leading pure fiber and wireless broadband networks.

Darren Entwistle: These results are also bolstered by our strong and highly differentiated social capitalism attributes that truly underpin the strength of the Telus brand. Let's turn now and look at Telus Business Solutions, or TBS, which delivered another strong quarter and again differentiates us from telco B2B performance on a global basis. In the first quarter, TBS achieved robust EBITDA and cash flow contribution growth of 4.9%, respectively.

Darren: These results are also bolstered by our strong and highly differentiated social capitalism attribute that truly underpin the strength of the Telus brand.

Darren: Let's turn now and look at <unk> business solutions, our GBS, which delivered another strong quarter and again differentiates us from telco <unk> performance on a global basis.

Darren: In the first quarter GBS achieved robust EBITDA and cash flow contribution growth of bore and 9% on a respective basis.

Darren Entwistle: Building on our track record of continued profitable growth, TBS experienced strong demand and product growth across all areas of our business. These efforts are progressing our goal of leading the market across both core telecom capabilities, as well as our 5G-powered software-as-a-service and data insights industry solutions. And, on the back of record sales performances over the past two quarters, we accelerated our momentum in the first quarter. Indeed, we achieved a 36% year-over-year increase in bookings in consumer goods and agribusiness. Furthermore, we delivered 8% revenue growth in animal agriculture.

Darren Entwistle: Building on our track record of continued profitable growth GBS experienced strong demand and product growth across all areas of our business.

Darren: These efforts are progressing and our goal of leading the market across both core telecom capabilities as well as our <unk> powered software as a service and data insights industry solutions.

Darren Entwistle: Intel's agriculture, and consumer goods on the back of record sales performances over the past two quarters, we accelerated our momentum in the first quarter. Indeed, we achieved a 36% year over year increase in bookings and consumer goods and agribusiness.

Darren: Furthermore, we delivered 8% revenue growth and animal agriculture.

Darren Entwistle: We remain confident in the strong growth potential in this business and anticipate positive mid to high single-digit revenue growth in the second half of the year. Now, let's turn now and take a look at our Telus health business. We achieved first quarter revenues of $420 million, alongside 28% EBITDA contribution growth.

Darren: We remain confident in the strong growth potential in this business and anticipate positive mid to high single digit revenue growth in the second half of the year.

Darren: Let's turn now and take a look at our Telus health business.

Darren: We achieved first quarter revenues of $420 million alongside 28% EBITDA contribution growth.

Darren Entwistle: On the back of on target sales and bookings in Q1, we expect steady improvement in health services revenue growth in the quarters ahead. Strong first quarter EBITDA growth was supported by the achievement of $251 million in combined annualized LifeWorks integration and other cost synergies to date, leveraging Telus International along the way. We continue to work towards our overall Telus Health Synergy objective of $427 million to be realized by the end of 2025, as we've committed to the street in that regard.

Darren: On the back of on target sales and bookings in Q1, we expect steady improvement in health services revenue growth in the quarters ahead.

Darren: Strong first quarter EBITDA growth was supported by the achievement of $251 million in combined annualized Lifeworks integration and other cost synergies to date, leveraging <unk> international along the way.

Darren: We continued to work towards our overall Telus health synergy objective of $427 million to be realized by the end of 2025 as we've committed to the street in that regard.

Darren Entwistle: Furthermore, we drove a 7% year-over-year increase in our globalized coverage, which is now reaching nearly 72 million people. Moreover, we supported health outcomes on close to 160 million digital health transactions in the quarter, up 7% on a year-over-year basis. In addition, we increased our virtual care membership to nearly 6 million people, up 13.5% on a year-over-year basis.

Darren: Furthermore, we drove a 7% year over year increase in our Globalised covered that is now reaching nearly 72 million people.

Darren: Moreover, we supported health outcomes on close to 160 million digital health transactions in the quarter up 7% on a year over year basis.

Darren: In addition, we increased our virtual care membership to nearly 6 million people up 13, 5% on a year over year basis again.

Darren Entwistle: As we continue to make strong progress scaling TELUS Health and TELUS Agriculture and Consumer Goods, we remain intensely focused on accelerating the significant growth profile of these highly differentiated global businesses that are thirsty for digital disruption to deliver better client outcomes. Importantly, we are leveraging the expertise, experience, and high-performance culture and talent of our entire team, inclusive of leveraging significant cross-selling synergies across all lines of our business. This is bolstered by the blue chip customer relationships, leading digital customer experience, and AI cost transformation capabilities of Telus International. On that note, earlier today, TI also reported its first quarter results.

Darren Entwistle: As we continue to make strong progress scaling Telus health and Telus agriculture, and consumer goods, we remain intensely focused on accelerating the significant growth profile of these highly differentiated global businesses that are Thursday for digital disruption did deliver better client outcomes.

Darren: Importantly, we are leveraging the expertise experience and high performance culture and talent of our entire team inclusive of leveraging significant cross selling synergies across all lines of our business.

Darren: This is buttressed by the blue chip customer relationships, leading digital customer experience and AI cost transformation capabilities of Telus International.

Darren: On that note earlier today G. I also reported its first quarter results.

Darren Entwistle: Jeff and the team announced robust cash flow generation amidst what remains a challenging global macroeconomic operating environment and a difficult prior year comparable. Despite the near-term top-line challenges, our TI team has executed against significant cost efficiency programs over the past 10 months. These efforts are positioning the business to deliver a strong 2024 in totality. TI's capacity to generate strong cash flows remains highly visible in its quarterly results. Committed to delivering profitable growth, TI's ability to surface further efficiency gains will also help fuel its investment in sales and marketing, along with ongoing technological innovation. Telus remains highly confident in TI's strategy and investment thesis.

Darren: Jeff and the team announced robust cash flow generation amidst what remains a challenging global macroeconomic operating environment and a difficult prior year comparable.

Darren: Despite the near term topline challenges our team has executed against significant cost efficiency programs over the past 10 months.

Darren Entwistle: These efforts are positioning the business to deliver a strong 2024 in totality.

Darren: Gis capacity to generate strong cash flows remains highly visible and its quarterly results.

Darren Entwistle: Committed to delivering profitable growth <unk> ability to serve its further efficiency gains will also help fuel its investment in sales and marketing along with ongoing technology innovation.

Darren Entwistle: Tell us remains highly confident in Ti strategy and investment thesis.

Darren Entwistle: This is amplified by meaningful opportunities in respect of digital transformation and, particularly, TI's capabilities in AI solutions, including generative AI, and this technology's proliferation on a worldwide basis. The continuing critical importance of differentiated digital customer experience solutions in the market, including a welcome and needed disruption from Gen AI, is enabling us to serve customers better and win incremental business along the way. This is creating a vibrant tailwind for both TI and TELUS that will bear fruit over the medium and longer term in terms of growth and profitability.

Darren: This is amplified by meaningful opportunities in respect of digital transformation, and particularly with ti's capabilities in AI solutions, including generative AI and this technologies proliferation on a worldwide basis.

Darren: The continuing critical importance of just differentiated digital customer experience solutions in the market, including a welcome and needed disruption from Gen. AI is enabling us to serve customers better and win incremental business along the way.

Darren: This is creating a vibrant tailwind for both Gi and tell us that will bear fruit over the medium and longer term in terms of growth and profitability.

Darren Entwistle: Doug's going to have an opportunity in a minute to provide further commentary on both T-TEC and Telus International's results. In closing, the record customer growth we continue to report is underpinned by our dedicated team who are passionate about delivering superior service offerings and digital capabilities over our world-leading wireless and pure fiber broadband network. The significant broadband network investments we've made are driving extensive socioeconomic benefits for Canadians and communities across the country and will continue to do so for decades to come.

Darren: Doug is going to have an opportunity in a minute to provide further commentary on both T Chek and Telus International's results.

Darren: In closing the record customer growth. We continue to report is underpinned by our dedicated team who are passionate about delivering superior service offerings and digital capabilities over our world, leading wireless and pure fiber broadband networks.

Darren Entwistle: The significant broadband network investments, we've made are driving extensive socioeconomic benefits for Canadians and communities across the country and we'll continue to do so for decades to come.

Darren Entwistle: These investments also enable the continued advancement of our financial and operational performance at TELUS and the long-term sustainability of our industry-leading dividend growth program. Today, we announce a 7% dividend increase, reflecting our unwavering commitment to delivering superior value to our shareholders. This builds on our extraordinarily consistent track record of delivering on our multi-year dividend growth program, first established in 2011 and most recently extended through 2025, targeting annual growth in the range of 7 to 10 percent. Today's increase represents our 26th increase over the past 14 years.

Darren Entwistle: Investments also enabled the continued advancement of our financial and operational performance at <unk> and the long term sustainability of our industry, leading dividend growth program today.

Darren: Today, we announced a 7% dividend increase reflecting our unwavering commitment to delivering superior value to our shareholders.

Darren: This builds on our extraordinarily consistent track record of delivering on our multi year dividend growth program first established in 2011, and most recently extended through 2025 targeting annual growth in the range of 7% to 10%.

Darren Entwistle: Today's increase represents our 26 over the past 14 years. It also reflects our unwavering confidence in delivering leading operational and financial results on a chronic basis prospectively.

Darren Entwistle: It also reflects our unwavering confidence in delivering leading operational and financial results on a chronic basis, prospectively. Importantly, our strong outlook includes anticipated and continued free cash flow expansion in the years ahead, driven by ongoing strong EBITDA growth and moderating CapEx intensity. This will further support the long-term sustainability and the quality and growth of our dividend expansion program. Finally, reflecting our team's longstanding belief in the synergistic relationship between doing well in business and doing good in our communities, May marks the official kickoff of our 19th annual Telus Days of Giving. And we're glad that we've created emulators in this regard, giving societal benefits to all.

Darren Entwistle: Importantly, our strong outlook includes anticipated and continued free cash flow expansion in the years ahead, driven by ongoing strong EBITDA growth and moderating capex intensity.

Darren: This will further support the long term sustainability and the quality and growth of our dividend expansion program.

Darren Entwistle: Finally, reflecting our teams longstanding belief and the synergistic relationship between doing well in business and doing good in our communities may marks the official kickoff of our 19th annual Telus days of giving.

Darren: And we're glad that we've created emulators in this regard given the societal benefit for all this year with the support of our extended <unk> family I have every confidence that we will exceed our goal of inspiring 80000 volunteers supporting positive outcomes in communities across the 32 countries in which we now operate.

Darren Entwistle: This year, with the support of our extended Telus family, I have every confidence that we will exceed our goal of inspiring 80,000 volunteers, supporting positive outcomes in communities across the 32 countries in which we now operate as an organization. Indeed, it is thanks to the unparalleled level of caring and commitment that our team members and retirees globally have contributed 2.2 million days of giving since 2000, and this is more than any other company on the planet, and the cultural connection that we have to giving back and what it does for engagement at TELUS is the same recipe that underpins the customer service excellence at this organization and the very low churn rates that we consistently deliver again, such as the Alchemy in that regard.

As an organization.

Darren: Indeed, it is thanks to the unparalleled level of carrying and commitment that our team members and retirees globally have contributed $2 2 million days of giving since 2000.

Darren: And this is more than any other company on the planet.

Darren Entwistle: And the cultural connection that we have to giving back and what it does for engagement at Telus is the same recipe that underpins the customer service excellence at this organization and the very low churn rate that we consistently deliver again such as the alchemy in that regard.

Darren Entwistle: And on that note, myself, our leadership team, and our board of directors remain consistently and exceedingly grateful for our team's passionate efforts to support our global communities as we strive to deliver outstanding results for all of the stakeholders that we serve. Thank you, Darren. And hello, everyone.

Speaker Change: Self our leadership team and our board of directors remain consistently and exceedingly grateful for our team's passionate effort to support our global communities as we strive to deliver outstanding results for all of the stakeholders that we serve and on that note I'll turn the call over to uncle Doug.

Doug: Thank you Darren and Hello, everyone.

Douglas French: In the first quarter, our team navigated a highly competitive environment and challenging global macroeconomic climate to achieve strong operational and financial results. Despite the exogenous headwinds, our results are supported by our longstanding commitment to drive profitable customer growth, product intensity, execution excellence, and our ongoing focus on efficiency and effectiveness.

Darren Entwistle: In the first quarter, our team navigated a highly competitive environment and challenging global macroeconomic climate to achieve strong operational and financial results.

Doug: Despite exogenous headwinds our results are supported by our long standing commitment to drive profitable customer growth product intensity execution excellence and our ongoing focus for efficiency and effectiveness.

Douglas French: In mobility.

Douglas French: Continued mobile phone and connected device subscriber additions drove higher network revenue by 2.9%, partially offset by the high impact of competitive intensity. As we progress through the remainder of 2024, we expect a highly competitive environment could continue to pressurize ARPU in the near term, along with the lapping of some roaming recovery gains in the first half of 2023. Importantly, we continue to focus on AMPU to drive the right economic outcomes. This is supported by driving lower costs to serve and leveraging our significant digital and self-serve capabilities, along with critical support from TI.

Douglas French: Continued mobile following and connected device subscriber additions drove higher network revenue by $2, 9%.

Doug: Partially offset by a high impact of competitive intensity intensity.

Doug: As we progress through the remainder of 2024, and we expect a highly competitive environment could continue to pressurize argue in the near term along with the lapping of some roaming recovery experience in the first half of 2020 right.

Doug: Importantly, we continue to focus on <unk> to drive the right economic outcomes.

Douglas French: This is supported by driving lower cost to serve and leveraging our significant digital and self serve capabilities along with critical support from Ti.

Douglas French: Our significant and ongoing focus on cost efficiency will help offset top-line pressures across the business, driving sustainable EBITDA and margin accretion. Fixed data service revenue grew 2.7% year-over-year, driven by strong customer growth across internet, security, and TV, along with increased B2B revenue contribution. The solid growth reinforces our superior product diversity within the home and business enabled by our world-leading pure fiber network. At the segment level, T-TEC operating revenues were up slightly by 0.4%, while T-TEC adjusted EBITDA increased by 4.1%.

Doug: Our significant and ongoing focus on cost efficiency will help offset topline pressures across the business driving sustainable EBITDA.

Doug: And margin accretion.

Doug: Fixed data service revenue grew two 7% year over year, driven by strong customer growth across Internet security and TV, along with increased b to B revenue contribution.

Douglas French: Solid growth reinforces our superior product diversity within the home and business enabled by our world, leading pure fiber network.

Douglas French: At the segment level <unk> operating revenues were up slightly by four zero down 4%, while <unk> adjusted EBITDA increased by four 1%.

Douglas French: Adjusted EBITDA margin expanded by 160 basis points to over 39%, reflecting a 4% decline in employee benefits expense from our efficiency program. Turning to DLC Act, for more additional and comprehensive details, please listen to the Telus International webcast that occurred earlier today. DLCX had continued impact from the challenging macroeconomic environment that resulted in operating revenues declining by 4.6% year-over-year. The decline was primarily driven by lower revenue from a leading social media client and a reduction in revenue in other industry verticals, notably e-commerce, FinTech, and travel and hospitality.

Douglas French: Adjusted EBITDA margin expanded by 160 basis points to over 39% reflecting.

Douglas French: Reflecting a 4% decline in employee benefits expense from our efficiency programs.

Doug: India turning to DLC ask.

Douglas French: For more additional and comprehensive details please listen to the Telus International webcast that occurred earlier today.

Douglas French: <unk> had continued impact from the challenging macroeconomic macroeconomic environment that resulted in operating revenues declining by <unk>, 6% year over year. The decline was primarily driven by lower revenue from a leading social media client and a reduction in revenue in other industry verticals, notably.

Douglas French: E Commerce, Fintech and travel and hospitality this.

Douglas French: This was partially offset by growth in services provided by existing customers, including Telus and Google, as well as other new clients added over the past 12 months. DLCX adjusted EBITDA was up 11%, including the earn out adjustment with respect to WillowTree. In addition, the efficiency and effectiveness programs executed on to decline to address operating expenses included a decrease of over 3% in employee benefits.

Douglas French: This was partially offset by growth in services provided by existing customers, including <unk> and Google as well as other new clients added over the past 12 months.

Douglas French: <unk> adjusted EBITDA was up 11%, including the earn out adjustment with respect to Willow tree. In addition to the efficiency and effectiveness programs executed on.

Douglas French: And to decline two to address operating expenses included a decrease of over 3% and employee benefits looking for new opportunities with new and existing clients supported by building on our momentum within AI data solutions revenue will continue to improve as the year progresses well.

Douglas French: Looking forward, new opportunities with new and existing clients, supported by building on our momentum within A.I. Deddy Solutions revenue will continue to improve as the year progresses, while TI's ongoing focus on efficiency also puts them in a strong position to manage through some of the macroeconomic pressures as we progress throughout 2024. Overall, Telus consolidated operating revenues decreased by 1.2% year-over-year and adjusted EVTA grew by 4.3%. Consolidated net income was down 38% year-over-year, while basic EPS was lowered by 40%, in part driven by adjusted EBITDA growth being offset by higher restructuring, depreciation, and amortization, and financing costs.

Douglas French: <unk> ongoing focus on efficiency also puts them in a strong position to manage through some of the macroeconomic pressures as we progressed throughout 2024.

Douglas French: Overall <unk> consolidated operating revenues decreased by one 2% year over year and adjusted EBITDA grew by $4, 3% Consol.

Doug: Consolidated net income was down 38% year over year, while basic EPS was lower by 40.

Douglas French: In part driven by adjusted EBITDA growth being offset by higher restructuring depreciation amortization and financing costs on.

Douglas French: On an adjusted basis, net income and EPS were essentially unchanged year over year. Free cash flow of $396 million was lower by $139 million, primarily driven by higher cash restructuring disbursements, totaling $225 million in the quarter, of which $185 million was related to the 2023 restructuring that we discussed and disclosed in February.

Doug: On an adjusted basis net income and EPS were essentially unchanged year over year free cash flow of $396 million was lower by $139 million, primarily driven by higher cash restructuring disbursements totaling $225 million in the quarter of which 185 million was related to.

Douglas French: For the 2023 restructuring that we had discussed and disclosed in February.

Douglas French: We remain focused on driving towards achieving our financial targets for 2024, which we reiterated today. This includes targeting T-TEC operating growth of 2-4% and T-TEC adjusted EVTA growth of 5.5-7.5%. Consolidated capital expenditures, excluding circa $100 million that is earmarked for real estate development, are still targeted to remain approximately $2.6 billion.

Douglas French: We remain focused on driving towards achieving our financial targets for 2024, which we reiterated today. This includes targeting <unk> operating growth of Q2 to 4% and <unk> adjusted EBITDA growth of five five to seven 5% Consol.

Douglas French: Consolidated capital expenditures, excluding circa 100 million that is earmarked for real estate development are still targeted to remain approximately $2 6 billion.

Douglas French: Lastly, Consolidated Free Cash Flow for 2024 is forecasted to be approximately $2.3 billion, driven by higher EBITDA and stable CAPEX. While top line growth was pressured at the beginning of the year, in part due to the aggressive pricing environment, we remain laser focused on profitable customer growth, as evidenced by our recent and differentiated multi-brand pricing suite, and continue to drive demand for our superior bundled offerings over our leading broadband network. Furthermore, we anticipate improvement from TELUS International, particularly in the second half of the year, as well as from TELUS Health and TELUS Agriculture and Consumer Goods.

Douglas French: Lastly, consolidated free cash flow for 'twenty 'twenty four is forecasted to be approximately $2 3 billion driven by hybrid higher EBITDA and stable capex.

Douglas French: While top line growth was pressured at the beginning of the year in part to the aggressive pricing environment, we remain laser focused on profitable customer growth as evidenced by our recent and differentiated multi brand pricing sweet and continued to demand.

Douglas French: And continue to drive demand in our superior bundled offerings over our leading broadband networks. Furthermore, we anticipate improvement from Telus International, particularly in the second half of the year as well as Telus health and tell us agriculture and consumer goods.

Douglas French: Overall, we remain positive on our ability to continue to generate strong free cash flow for years to come, benefiting from our industry-leading growth profile that consistently showcases our superior asset mix and operational execution. This strong position further supports our industry-leading dividend growth program in place until 2025. Our commitment to deliver on this program is underpinned by our confidence in executing our growth strategy and generating meaningful free cash flow on a sustained basis. This is balanced with maintaining a strong balance sheet and providing us with ample flexibility to support our future growth ambitions, leverage reductions, and capital returns to shareholders. With that, I'll turn it back to Robert.

Douglas French: Overall, we remain positive on our ability to continue to generate strong free cash flow for years to come benefiting from our industry, leading growth profile that consistently showcases our superior asset mix and operational execution.

Doug: This strong position further supports our industry, leading dividend growth program in place for 2025.

Doug: Our commitment to deliver on this program is underpinned by our confidence in executing our growth strategy and generating meaningful free cash flow on a sustained basis. This.

Doug: This is balanced with maintaining a strong balance sheet and providing us ample flexibility to support our future growth ambitions leverage reductions and capital returns to shareholders.

Doug: With that I'll turn it back to Robert.

Robert Mitchell: Thanks, Doug. Mihaly, we're ready to proceed with questions, please. Yes, of course. The first question comes from Vince Valentini from TD. Please go ahead, Vince. Thanks very much. Hi. Can you hear me?

Robert Mitchell: Thanks, Doug we're ready to proceed with questions. Please.

Robert Mitchell: Yes of course first question.

Robert Mitchell: Comes from Vince Valentini from TD.

Vince Valentini: Please go ahead Vince.

Robert Mitchell: Yes.

Vince Valentini: Thanks very much.

Operator: Sorry, the operator was interrupting. Am I good? Yes, we can. Go ahead. Um, a couple of things.

Speaker Change: Hi can you hear me sorry, there operator was interrupted him again, yes. We can go ahead ray.

Speaker Change: Couple of a couple of things.

Vince Valentini: 4.1% is obviously a bit below the 5.5% to 7.5%. I think that was planned, Doug, but can you just confirm that you expect EBITDA growth for T-TEC to pick up with passing quarters and you're still confident, you know, not necessarily even at the low end but just somewhere in the guidance range? That is cracked, man.

Operator: Four 1%.

Ray: It's obviously a bit below the five 5% to seven five I think that was planned Doug but can you just confirm that you expect EBITDA growth for <unk> to pick up with passing quarters, and you're still confident you'll not necessarily even at the low end, but just somewhere in the guidance range.

Doug: That is correct events.

Douglas French: Perfect. Second on that is... Your focus on Ampu... I'm sure it's happening, but as you know, we can't really see it visually.

Speaker Change: Perfect checking on that is.

Douglas French: You're focused on <unk>.

Douglas French: And.

Douglas French: I'm sure it's happening, but as you know we can't really see it visibly is it fair to say that the wireless segment EBITDA would have been above that four 1% total GTECH.

Vince Valentini: Is it fair to say that the wireless segment EBITDA would have been above that 4.1% total TTEC? We actually don't go to that level on a full allocation. I would say it was directionally in that zone.

Ray: Okay.

Vince Valentini: We actually don't go to that level on a full allocation I would say it was directionally in that zone. The profitability on <unk> is also very strong with our bundled offerings. So.

Douglas French: The profitability on FFH is also very strong with our bundled offering. So I would say it's directionally where you're highlighting it, but we don't go to that level. So I can't.

Ray: I would say it's.

Douglas French: Directionally, where you're highlighting but we don't go to that level, So I can't confirm it.

Vince Valentini: Okay, and one last one. On your free cash flow calculation table, where you break everything down nicely, there's the effective lease principle for $178 million this quarter. I'm just asking you to confirm that that comes out of your free cash flow for guidance purposes, and when you're doing a dividend pay ratio, and I'm just wondering why, like, what are those? Can you give us some examples of those real costs of the business as opposed to just some sort of fabricated financing charge?

Ray: Hey.

Douglas French: And one last one on your your free cash flow calculation.

Vince Valentini: Table, where you break everything down nicely.

Vince Valentini: Theres the effective lease principle for $178 million this quarter.

Vince Valentini: I'm just can you confirm that that comes out of your free cash flow for guidance purposes, and when Youre doing a dividend payout ratio and I'm. Just wondering why like what are those can you give us. Some examples of those real cost of the business as opposed to just some sort of fabricated financing charge.

Vince Valentini: Yeah, when the accounting changed, and you put leasing on your books, we were the only ones that went full in that if it was an operating lease before, and it's now a lease on your books, we would still charge it through free cash flow, or others wouldn't have. So it is a clean view to the previous accounting. And it would be anything from building leases to equipment leases to any of those environments.

Vince Valentini: Yes.

Vince Valentini: When the accounting changed and Newport leasing on your box, we were the only ones that windfall in that if it was a operating lease before and it's now a lease on your books that we would still Jeff charges through free cash flow or others haven't.

Speaker Change: So it is a clean view to the previous accounting and it would be anything from building leases to equipment leases too.

Vince Valentini: Any of those environments. So it's all 100%.

Douglas French: So it's all one hundred percent supporting our business across the board. And it is in alignment with the accounting principles that were established with IFRS 16 a few years ago. And yes, they are completely legit, and they are completely on board with supporting our business. Thanks, Doug. Thanks, Vince. Next question, please, Maher. Of course. The next question comes from Jerome Dubreuil from Desjardins. Please go ahead. Please go

Vince Valentini: Supporting our business across the board and it is alignment with the accounting principles that were established with <unk> 16, a few years ago and yes. They are completely legit.

Jerome Dubreuil: And they are completely on board to supporting our business.

Jerome Dubreuil: Thanks Scott.

Jerome Dubreuil: Vince next question please.

Jerome Dubreuil: Of course, our next question comes from is that home debris from dues. Zhang. Please go ahead.

Speaker Change: Please go ahead, thanks for Xyrem.

Jerome Dubreuil: Yeah, thanks for taking the questions. I've been talking about lower CapEx objectives during the conference season lately. Maybe in the context of the dividend increase, if we could maybe just provide some more color on potentially reaching 10% CapEx intensity down the road and maybe a timeline for that objective. Yeah, so we've been holding our capex flat with the opportunity to continue to bring it down. You've seen our growth trajectory, and we're going to be 12 or lower, even in the current year.

Zhang: Thanks for taking the questions.

Zhang: <unk> been talking about lower Capex.

Zhang: Objective during the conference season lately maybe.

Jerome Dubreuil: Maybe in the context of the dividend increase if we could maybe just provide some more color on potentially reaching.

Jerome Dubreuil: 10% Capex intensity down the road and maybe a timeline for that objective.

Speaker Change: Yes so.

Jerome Dubreuil: We've been holding our capex flat with the opportunity to continue to bring it down you have seen our growth trajectory and we're going to be.

Zhang: <unk> or lower even in the current year and so as we assess our capital needs into the future. We're going to have continued growth and we do not see growth in our capital number if anything we can continue to bring it down as we've discussed so that is how we will get to Ken.

Douglas French: And so as we assess our capital needs into the future, we're going to have continued growth, and we do not see growth in our capital number. If anything, we can continue to bring it down, as we've discussed. So that is how we will get to 10, or, circa 10, let's say.

Zhang: Circa 10, let's say, but that is still significantly lower than others in the industry and.

Douglas French: But that is still significantly lower than others in the industry. And, you know, it's the result of all the investments we made in our fiber network way earlier than all of our peers. And the fact that we're bringing that to conclusion ahead of our peers at rates that are the lowest in history, at labor rates that are the lowest in history, is an advantage that we have that our peers don't. And I think that's why you're going to see it through that capital intensity level, complemented by an improving revenue profile. Yes, thanks. A second for me if you please.

Douglas French: The result of all of the investments we made in our fiber.

Douglas French: Way earlier than all of our peers and the fact that we are bringing that to conclusion.

Zhang: Ahead of our peers at rates that were the lowest in history at labor rates that were lowest in history is an advantage that we have that our peers do.

Zhang: Asks why youre going to see it through that capital intensity level.

Douglas French: Complemented by an improving revenue profile right.

Speaker Change: Yes, Thanks second for me.

Jerome Dubreuil: If you can provide more color on the rationale for giving 5G on the public mobile brand. I totally understand the Ampu strategy, but just looking forward to that, it seems like this marks a clear sign that this is difficult to monetize. Sure, so I think there's a couple things.

Speaker Change: If you can provide more color on the rational.

Speaker Change: Or for giving five G on the public mobile brand.

Jerome Dubreuil: I get totally the <unk> strategy, but just looking forward that seems like this.

Jerome Dubreuil: A clear sign that this is difficult to monetize.

Zainul Mawji: So there are bifurcated offers on public mobile for both 4G and 5G, depending on the profile of the customer. I think, fundamentally, it is a digital-first and subscription-on-demand brand. And that shouldn't prevail, you know, prevent it from offering services on the best network that we have. And secondly, you know, I think the key here is that, you know, it's a completely eSIM, digital-only, no-contact, no-store, no-device opportunity.

Jerome Dubreuil: Dan will go ahead and share. So I think there's a couple of things. So there are bifurcated offers on public mobile for both <unk> and <unk>.

Zainul Mawji: Depending on the profile of the customer.

Dan: Fundamentally it is a digital first and subscription on demand brand.

Zainul Mawji: And that shouldn't prevail prevented from offering at services on the best network that we have and secondly.

Zainul Mawji: And that digital-first entity does resonate with the population of the market that is looking for 5G service in a bring-your-own-device market. So we're playing in that market accordingly. We're being very clear about differentiating our bundles with respect to premium. As Darren mentioned, we have launched new premium capabilities in the market and are really pushing the value of our premium loading, as well as the fact that we are, you know, looking at, you know, the KUDO brand and working through different bundling options for our customers in that value segment as well. Yep, that's helpful.

Zainul Mawji: I think the key here is that it.

Dan: A completely E. Sam digital only no contact no store no device.

Zainul Mawji: <unk> opportunity and that digital first entity does resonate with a population of the market that is looking for <unk>.

Dan: In our bring your own device market. So we're playing in that market. Accordingly, we're being very clear about differentiating our bundled with respect to premium as Darren mentioned, we have launched new premium capabilities in the market now really pushing the value of our premium loading as.

Dan: Well as the fact that we are looking at the Kudo brand and top and working through different bundling options for our customers in that value segment as well.

Zainul Mawji: That's our rationale.

Speaker Change: Okay. That's helpful. Thank you.

Jerome Dubreuil: Thank you. Thanks, Jerome. Next question, please, may I? Yes, the next question comes from Drew McReynolds from RBC. Please go ahead, Joe.

Speaker Change: Thanks, Rob next question please.

Jerome Dubreuil: Yes.

Drew McReynolds: Question comes from drew Mcreynolds from RBC.

Drew McReynolds: Go ahead Joe.

Drew McReynolds: Thank you. Yeah, thanks very much. So, two for me.

Drew McReynolds: Yes, thanks very much.

Drew McReynolds: So two for me.

Drew McReynolds: Like obviously on the wireless ARPU side, I think a bunch of us are increasingly thinking it's an irrelevant metric. Like we continue to see denominator tweaks over the years, and I think yours actually worked against you this quarter, if I'm reading that footnote right in your deck.

Joe: Like obviously on the wireless <unk> side, I think a bunch of us are increasingly thinking it's an irrelevant metric like we continue to see denominate or tweaks over the years and I think yours actually worked against you. This quarter, if I'm reading that footnote right in your in your deck and any of that would just.

Speaker Change: I think I know the answer but would love to hear you.

Speaker Change: Your view on the relevance of wireless <unk> and why we're just not focused on network revenue growth instead, and then second just with respect to the leverage target maybe for you.

Drew McReynolds: Doug we saw BCE raise its target to three times.

Speaker Change: Honestly, you don't need to comment on that but just with reference to your two two to two seven times leverage target just what are the puts and takes too.

Dan: You either doing the same or maintaining that over time. Thank you.

Drew McReynolds: Why don't you kick it off and then Doug you can you can buy the commentary and then you can move on to leverage.

Drew McReynolds: In any event, I think I know the answer, but would love to hear your view on the relevance of wireless ARPUs and KPIs and why we're just not focused on network revenue growth instead. And then, second, just with respect to the leverage target, maybe for you, Doug, we saw BCE raise its target to three times. Obviously, no need to comment on that.

Speaker Change: Thanks for the question drew.

Speaker Change: I think the key thing that you're really zoning in on and highlighting is the degree to which our <unk> metric is a driver of how we're managing the business and of course, we are always focused on the profitability and the segmentation of our customer base and the right pricing dynamic.

Drew McReynolds: But just with reference to your 2.2 to 2.7 times leverage target, just what are the pros and cons of you either doing the same or maintaining that over time? Zainul, why don't you kick it off, and then, Doug, you can provide the commentary, and then you can move on to leverage, okay? Thank you. Thanks for the question, Drew. I think the key thing that you're really zoning in on and highlighting is the degree to which ARPU as a metric is a driver of how we're managing the business.

Speaker Change: But I think more so what youre going to see out of US is that we're focused on household <unk>.

Zainul Mawji: <unk>, our mobile in home business and customer lifetime value. So the key elements that are going to reflect within that metric our product intensity, our churn value the level of wallet share that we are able to clean and gain traction in our customer base and more still what you want what we want to achieve is we want to win.

Drew McReynolds: Of course, we are always focused on the profitability and the segmentation of our customer base and the right pricing dynamic, but I think more so what you're going to see out of us is that we're focused on household AMPU across our mobile and home business and customer lifetime value. The key elements that are going to reflect within that metric are product intensity, our churn value, the level of wallet share that we are able to glean and gain traction to in our customer base, and more so what we want to achieve is we want to ensure that areas that customers are already spending money, whether it's streaming services or you'll see that we're coming out with new home automation capabilities that save our customers money on their energy bill.

Drew McReynolds: Sure that areas that customers are already spending money, whether it's streaming services or you'll see that we're coming out with new home automation capabilities that save our customers money on their energy Bill those are the kinds of things that we're going to drive in the market from a differentiation perspective and will lead more to the indicator.

Zainul Mawji: Those are the kinds of things that we're going to drive in the market from a differentiation perspective and will lead more to the indicator of household AMPU in terms of improving our cost to serve over a broader revenue base and customer lifetime value in terms of driving better retention outcomes across a broader revenue base as well. So, that's a more relevant metric for us in terms of how we want to manage the business.

Zainul Mawji: Household <unk> in terms of improving our cost to serve over a broader revenue base and customer lifetime value in terms of driving better retention outcomes across a broader revenue breakdown as well. So that's a more relevant metric for us in terms of how we want to manage the business.

Zainul Mawji: And just confirming, you are correct. Because we applied the adjustment retroactively so you could have clean comparisons, it actually was negative for us on our ARPU growth in the quarter. And if you treat it prospectively, it would have been a completely different story.

Zainul Mawji: And does confirm and you are correct because we apply the adjustment retroactively. So you could have clean comparisons it actually was negative to us on our ARPA growth in the quarter.

Zainul Mawji: And treated prospectively it would have been completely different story, so trying to be transparent to the street on a retroactive impact on that front.

Zainul Mawji: So I'm trying to be transparent to the street on the retroactive impact on that front. On the leverage side. We definitely are managing to an optimal cost of capital, and that optimal cost of capital, if you look back at where we are today, has allowed us to be a little bit higher, but delevering is obviously in our objectives to get down to that three or below three. We've taken the position we will not change our, that's not even guidance, but our benchmark on what we want to be in for leverage until we are closer to that metric, So do I think that the range of anywhere around three to below three is the right zone?

Zainul Mawji: On the leverage side.

Zainul Mawji: <unk>.

Zainul Mawji: We definitely are are managing to an optimal cost of capital.

Zainul Mawji: That optimal cost of capital as you look back and where we are today.

Zainul Mawji: Has been allowed us to be a little bit higher but delevering is obviously and our objective is to get down to that three year below three.

Speaker Change: We've taken the position we will not change our.

Zainul Mawji: Our and that's not even guidance but are.

Zainul Mawji: Benchmark on what we want to be in for leverage until we are closer to that metric because we want to make sure we earn the right to do that so.

Speaker Change: Do I think that range of anywhere around the 3% below three is the right zone, yes does that probably where the optimal long term cost of capital is.

Douglas French: Yes. But is that probably where the optimal long-term cost of capital is? Yes, and we'll reassess it when we get closer to it, but our goal right now is to ensure we invest appropriately and continue to have a strong balance sheet. Just as a quick highlight, as well, even the spectrum purchases we've done in the past 12 months add 44 basis points to our numbers. So we'd be in the low threes without the high cost of spectrum as being one of the key drivers. Thank you. Thanks, Drew.

Drew McReynolds: Yes, and we'll reassess that when we get closer to you Ed.

Speaker Change: But our goal right now is to ensure we invest appropriately.

Douglas French: <unk> continued to have a strong balance sheet.

Speaker Change: Just as a quick highlight as well even the spectrum purchases we've done in the past 12 months at 44 basis points of our numbers so we'd be in the low threes.

Douglas French: High cost of spectrum.

Douglas French: As being one of the key drivers.

Speaker Change: Thank you.

Speaker Change: Thanks Drew next question please.

Drew McReynolds: Next question, please. The next question comes from Maher Yaghi from Scotiabank. Please go ahead. Thank you for taking my question. Can you hear me?

Douglas French: Next question comes from Maher Yaghi from Scotia Bank.

Maher Yaghi: Please go ahead.

Maher Yaghi: Thank you for taking my questions can you hear me.

Maher Yaghi: Yes, we can. Okay, great. Thank you. I wanted to touch on your fixed data services revenue growth rate. Last year, fixed data services revenue was growing at 7%, and now that growth is running around 3%. You indicated in the MD&A that ARPU for internet customers is now flat year-on-year versus growing last year. Can you dissect for us the forces at play here and what is causing your internet ARPU to come under pressure

Maher Yaghi: Yes, we can okay, great. Thank you.

Maher Yaghi: Wanted to touch based on touch on your fixed data services revenue growth rate.

Maher Yaghi: Last year fixed data services was growing at 7% and now that growth is running around 3% you indicated MBNA.

Speaker Change: That's.

Maher Yaghi: Our pool for Internet customers is now flat year on year versus growing last year.

Maher Yaghi: Can you dissect for us the forces at play here and what is causing your internet come under pressure more importantly.

Maher Yaghi: More importantly, I wondered if you can give us your view on where that line item growth rate is heading and if achieving and if achieving your revenue guidance for the year depends on seeing that growth rate re-accelerating in the back half of the year. Thank you. Zainul, why don't you take that?

Zainul Mawji: I wanted if you can give us your view on where.

Zainul Mawji: That line item growth rate is heading to and if achieving.

Zainul Mawji: Achieving your revenue guidance for the year depends on seeing that growth rate accelerating in the back half of the year. Thank you.

Zainul Mawji: So I don't want to take that.

Zainul Mawji: So I think the answer to that is very simple and clear. There is competitive pressure in the market, and we've talked about that before. You know, I think fundamentally you've seen that we've been able to grow based on, you know, the volume of our growth. You've seen that come through in the overall fixed data revenue. The ARPU, similar to wireless, is under significant pressure.

Zainul Mawji: So I think the answer to that is very simple and clear there is competitive pressure in the market and we've talked about that before.

Zainul Mawji: I think fundamentally you've seen that we've been able to grow based on.

Zainul Mawji: The volume of our growth you've seen that come through in the overall <unk> revenue the <unk> similar to wireless is under significant pressure.

Zainul Mawji: <unk> seen customer step up will continue to step up to higher broadband speeds.

Zainul Mawji: We are seeing customers step up, and continue to step up, to higher broadband speeds, and we are seeing customers continue to value our fiber capabilities. And what's really important there as well is that our pure fiber churn on high speed is well under.9. So, you know, we're continuing to see resonance in the market with our offering. But at the lower end of the market, and for the customers that are willing to make the switch, there is, you know, an ARPU pressure. I think the way that we think about that goes back to my answer on household ARPU.

Zainul Mawji: And we are seeing customers continue to value our fiber capabilities and what's really important there as well is that our care fiber churn on high speed is well under dot nine cell, we're continuing to see resonance in the market with our offering.

Zainul Mawji: The lower end of the market and for the customers that are willing to make the switch.

Zainul Mawji: There is.

Zainul Mawji: We're focused on product intensity, continued revenue drivers, and a significant focus on cost to serve, which you've seen come through in our restructuring efforts, as well as our digitization efforts, leveraging TI, both for our product development, as well as for our digitization and cost to serve improvement and customer experience improvement. So we have significant upside from a profitability perspective in that regard. And what's your view on... We're not going to give a view on the line item, expected growth rate, in terms of forward-looking guidance, but to maybe answer your question in a different way, our confirmation of our guidance range and what we're going to do is not contingent upon resurrecting that fixed data line growth back to 2023 levels.

Speaker Change: Pressure.

Zainul Mawji: Thank the way that we think about that goes back to my answer on household ampoule. We're focused on product intensity continued revenue drivers and our significant focus on cost to serve which you've seen come through in our restructuring efforts as well as our digitization.

Zainul Mawji: Efforts leveraging ti both for our product development as well as for our Digitization and cost to serve improvement and customer experience improvement. So we have significant upside from a profitability perspective in that regard.

Zainul Mawji: Okay.

Zainul Mawji: What's your view on the expected growth rate for that line item.

Zainul Mawji: We're not going to give a view on the line item expected growth rate in terms of forward looking guidance, but.

Zainul Mawji: To to maybe answer your question in a different way.

Zainul Mawji: Our confirmation of our guidance range and what we're going to do is not contingent upon resurrecting that fixed data line grow back to the 2023 levels that would be nice and we would welcome. It if supported by the competitive dynamics, but we think that.

Zainul Mawji: That would be nice, and we would welcome it if supported by the competitive dynamic, but we think that we have sufficient opportunities on the ARPH front, we have sufficient opportunities on the bundling and volume extension front, and we have sufficient opportunities on new product development to support getting into. Great, thank you very much. Thanks, Mayor.

Zainul Mawji: We have sufficient opportunities on the <unk>.

Zainul Mawji: Ph upfront, we have sufficient opportunities on the bundling and volume extension front, and we have sufficient opportunities on new product development.

Zainul Mawji: To support getting into our established guidance range.

Speaker Change: Great. Thank you very much.

Maher Yaghi: May I have the next question, please? All right, the next question comes from David Barden from Bank of America. Please go ahead, David. All right, thanks for taking the question. It's Matt sitting in for Dave.

Speaker Change: Thanks Mirror her next question please.

Maher Yaghi: Alright next question comes from David Barden.

David William Barden: From Bank of America.

David William Barden: Please go ahead David.

Speaker Change: Okay.

Maher Yaghi: Alright, Thanks for taking the question is Matt sitting in for Dave.

David William Barden: I guess, first, I wanted to, if I could, just please revisit the, um, the, uh... The margin expansion within TTAC, I heard you guys obviously say, driven by the efficiency program. I was wondering if you could maybe give some color around how much of the, if there should be more efficiency gains from that program coming in subsequent quarters. Should we be thinking that that 160 basis point range is something that could be sustained or grow? Just some commentary around here.

Matt: I guess first I wanted to if I could just please revisit.

David William Barden: The.

Matt: Can you kind of margin expansion within T Chek.

David William Barden: I heard you guys, obviously driven by the efficiency program I was wondering if you could maybe give some color around how much of the if there should be more efficiency gains from that program that are coming in subsequent quarters.

David William Barden: Should we be thinking that that.

David William Barden: 160 basis point range, it's something that can be sustained or grow just some commentary around there and then maybe secondarily.

Douglas French: Zainul, I heard you kind of highlight the importance of the sort of in-house measures of product intensity and churn, I think primarily on some of the wireline products and cost to serve. And I think you gave a broad range of what churn is for the internet, if I'm not mistaken, for the quarter. You know, is there any thought to providing on a more regular basis some of these measures, which are obviously internally important? Providing them externally, to the extent that you feel comfortable. And then maybe, you know, finally, just on the broadband net ads, I know that there are, obviously, they're still fairly robust. For example, White by Historic Trend.

David William Barden: Zeno I've heard twice in responses to answers you've kind of highlighting the important Stuart.

Douglas French: Kurt.

Douglas French: Measures of product intensity churn I think primarily on some of the wireline products.

Douglas French: Cost to serve.

Douglas French: And I think you gave a broad range on what churn is for Internet, if I'm not mistaken.

Douglas French: Quarter.

Matt: Is there any thought to providing on a rate more regular basis. Some of these measures, which are obviously internally important providing an externally to the extent that you feel comfortable and then maybe finally.

Matt: Just on the broadband net adds I know that there is.

Douglas French: Obviously, there is still fairly robust.

Douglas French: EBIT by historic.

Douglas French: Trends.

Zainul Mawji: I was wondering, I know there is some, you know, kind of Wholesale that's included in there. Out of Territory kind of internet ads. I was wondering if you could provide any color on what that split might be, if it's material, if it's growing, any kind of economy. Okay. I'll hand it over to Doug to talk about the margin expansion. It's $170 billion. Fifth, Matt, not 160.

Douglas French: I was wondering I know there is some kind.

Doug: Kind of a.

Doug: Wholesale that's included in there.

Zainul Mawji: Oratory kind of Internet ads I was wondering if you could provide any color on.

Doug: What that split might be if it's material it's growing.

Maher Yaghi: Typically it would be helpful. Thanks.

Zainul Mawji: Okay.

Doug: All right.

Zainul Mawji: Hand, it over to Doug to talk about the margin expansion that is 170.

Douglas French: And the answer simply to your question about whether it was finished and we're just seeing the impact of last year or whether it's still ongoing. It is indeed still ongoing as it relates to our major cost efficiency program. Insofar as staff level reductions are concerned, that won't be complete until the end of July.

Doug: Bips up Matt and up 160 and the answer.

Douglas French: <unk> to your question about weather.

Douglas French: It was finished and we're just seeing the impact of last year or whether it's still ongoing.

Douglas French: It is indeed still ongoing as it relates to our major cost efficiency program and so far as staff level reductions are concerned.

Douglas French: That won't be complete until the until the end of July so theres more to come on the efficiency upfront.

Douglas French: So there's more to come on the efficiency front to support what we're delivering in terms of EBITDA growth and margin expansion, but Doug can provide some additional color and then Zainul can follow up and answer the second part of your question or the second and third part of your question. Yeah, so you would have seen in our disclosure that we actually had a 4% reduction in our employee benefits costs, and that equates to over $50 million in the quarter on its own, which is not complete yet.

Douglas French: To support what we're delivering in terms of EBITDA growth and margin expansion, but.

Douglas French: Doug can provide some additional color and then zee.

Speaker Change: <unk> a follow up and answer the second part of your question or second two parts of your question.

Doug: Yes, so you would've seen in our disclosure that we actually had.

Doug: 4% reduction in our employee benefits cost burden and that would equate to over $50 million in the quarter on its own.

Doug: Which is not complete yet and there will still be more as we complete their finished the program and continue to drive Digitization and efficiencies as the year goes on we're also well through the health savings that we've talked to.

Douglas French: There will still be more as we complete or finish the program and continue to drive digitization and efficiencies as the year goes on. We're also well through the health savings that we've talked about and hitting our health targets, as Darren highlighted in his previous remarks. And so the combination of the two absolutely gets us on a trajectory that will be sustainable and will grow as the year goes on. We will start to lap up a little bit of those savings as we get in the back end of the year, but the margin expansion will hold. Okay, thanks for that.

Douglas French: Hitting our health target as Darren highlighted in his.

Douglas French: Previous remarks, and so the combination of the two absolutely gets us on a trajectory that that will be sustainable and we will grow as the year goes we will start to lap a little bit of the.

Douglas French: Those savings as you get in the back end of the year, but the margin expansion will hold.

Zainul Mawji: I think both your question and Drew's lead us to kind of want to take away and think about, you know, some better leading indicators with respect to whether it's product intensity, revenue growth, you know, customer lifetime value on a prospective basis. So we'll think about that in terms of what we should take away. You know, when you know, on an ad hoc basis, one of the things I can highlight as an example is that our product intensity is now 3.21 on a pure fiber household basis.

Douglas French: Okay. Thanks for that I think both your question and <unk> lead us to kind of want to take away and think about.

Zainul Mawji: Some better leading indicators with respect to.

Zainul Mawji: Whether it's product intensity revenue growth customer lifetime value on a prospective basis of what we will think about that in terms of what we should take away.

Zainul Mawji: On an AD hoc basis, one of the things that I can.

Zainul Mawji: Highlight as an example is that our.

Zainul Mawji: Product intensity is now $3 two one on a pure fiber household basis.

Zainul Mawji: And that has grown significantly, and it will continue to grow not just on the back of the existing products that we have but the new products that we're going to be introducing as well. In terms of your question on the split of the internet, I would say that, relative to the TPIA side of the business, it's fairly modest and continues to be modest. We continue to see and drive growth on the back of our existing pure fiber footprint, which does see some, you know, incremental household releases and newcomer growth as well as new household introduction growth as well.

Zainul Mawji: And that has grown significantly and it will continue to grow not just on the back of the existing products that we have but the new products that we're going to be introducing as well.

Zainul Mawji: Terms of your question on the split of Internet I would say that relative to the epi side of the business.

Zainul Mawji: It's fairly modest and continues to be modest.

Zainul Mawji: We continue to see and drive growth on the back of our existing tier fiber footprint, which does see some.

Zainul Mawji: Incremental household releases and newcomer as well as new household.

Zainul Mawji: Our introduction growth as well.

Zainul Mawji: And you know, I think the most critical element to give you some insight into how we're going to be managing that part of the business. We certainly feel that, you know, you need to have a high product intensity and a bundled capability to be successful in a lease network environment. And we are operating under the axiom that, on an overall basis, the return on investment for any bundled household, whether it is, you know, on a lease network, has to be equal to or better than what we would achieve in terms of our own build.

Zainul Mawji: And I think the most critical element to give you some insight into how we're going to be managing that part of the business. We certainly feel that you need to have a high product intensity, a bundled capability to be successful in a in a lease.

Zainul Mawji: <unk> network environment.

Zainul Mawji: And we are operating under the axiom that on an overall basis. The return on investment for any bundled household whether it is.

Zainul Mawji: On a lease network has to be equal to or better what we would achieve.

Zainul Mawji: In terms of our own build and that's delivered on the back again product intensity of looking at both mobile and home of leveraging our differentiated brand so that you're leveraging the premium aspects of your brand and on the back of cost to serve and churn improvement as well, but that's the way we're looking at making sure that.

Zainul Mawji: And that's delivered on the back of product intensity, of looking at both mobile and home, of leveraging our differentiated brands so that, you know, you're leveraging the premium aspects of your brand and on the back of cost to serve and churn improvements as well. But that's the way we're looking at making sure that we're focused on economic value loading and not hollow loading. Great, thank you so much for the call.

Zainul Mawji: We've focused on we're focused on economic value loading and not hollow loading.

Speaker Change: Great. Thank you so much for the color.

Matt: Thanks, Matt. Next question, please. Right. The next question comes from Stephanie Price from CIBC. Please go ahead.

Speaker Change: Thanks, Matt next question please.

Matt: Right next question comes from Stephanie price from CIBC. Please go ahead Stephanie.

Matt: Okay.

Stephanie Doris Price: Hi, the prepared remarks mentioned a few times increases in competition for defense device financing. I'm just curious about what you're seeing in the market and how you think about competing in that type of environment. Doug, So what we've seen on that end is a lot of our offerings on device financing; we've kept the floor and made sure we held economics, strong economics, where there are times on the competitive side where that hasn't held, and the device financing floors have come down, which would then open up lower ARCU customers to, you know, a high subsidy and or a long-term financing cost. So I said that intensity is And that's where you've seen that, or something even more intense. And that's what the reference was.

Stephanie Doris Price: Hi, the prepared remarks mentioned, a few times increases in competition on device financing.

Stephanie Doris Price: Curious, though what you're seeing in the market and how you think about competing in that type of environment.

Stephanie Doris Price: Doug.

Stephanie Doris Price: So.

Doug: What we've seen on that end as are a lot of our offerings on device financing, we kept the floor and made sure of how the economics strong economics.

Stephanie Doris Price: There.

Doug: Our times through the competitive side, where that Hasnt held.

Doug: And the device financing floors have come down.

Stephanie Doris Price: Which would then open up lower our <unk> customers to our high subsidy and or a long term financing costs. So.

Doug: I said that intensity is really what we've seen throughout in February.

Stephanie Doris Price: Probably is as intense as black Friday was and that's where you've seen that or even more intense.

Douglas French: And it's primarily lowering the floor so that you're giving more subsidy to lower ARCU customers, which becomes very dilutive the lower you go. Zainul, do you want to add some color in terms of what we're doing in terms of brand segmentation and premium? Absolutely. So Stephanie, I think Doug covered the highlights, but you know, it's really important to kind of zone in on the two or three levers that impact dilution the most.

Doug: And that's what the reference was and it's primarily lowering the floor, so that youre, giving more subsidy to lower <unk> customers.

Zainul Mawji: Which becomes very dilutive the lower you go.

Zainul Mawji: I know you want to add some color in terms of enjoying on brand segmentation and absolutely premium absolutely to Savi I think Doug covered the highlights but.

Zainul Mawji: It's really important to kind of zone in on that the two or three leavers that impact dilution the most.

Zainul Mawji: So one of them is the amount of subsidy. The second one is the rate at which you offer that subsidy on a device because that has a significant flow-through impact from your base to step down when it's an attractive market for devices. And then the third piece is the bring it back value.

Zainul Mawji: So one of them is the amount of subsidy. The second one is the rate at which you offer that subsidy on a device because that has a significant flow through impact from your base to step down when it's an attractive market for devices and then the third piece actually.

Zainul Mawji: And one of the things we've seen relatively stable in the market up until Q1 was the bring back value, but we saw that increase in competitiveness towards the back end of Q1 as well. So what we're really focused on is really differentiating our brands so that, you know, we are creating a higher value step on the device financing floor and reducing the level of potential re-rate for our customers. And so when, you know, the promotional intensity creeps up, you're not seeing that re-rate materialize when customers see promotions for devices. And then, you know, on the flanker side, that's where you have to look at most of the volume being on bring your own device.

Zainul Mawji: Is to bring it back value and one of the things we've seen relatively stable in the market up until Q1 was to bring it back value, but we thought that increase in competitiveness towards the back end of Q1 as well. So what we're really focused on is really differentiating our brands.

Zainul Mawji: That we are creating a higher value step up on the device financing floor and reducing the level of potential re rate for our customers and so when that promotional intensity creeped up.

Zainul Mawji: Youre not youre, not seeing that that re rate materialized.

Zainul Mawji: Customers see.

Zainul Mawji: Promotions for our devices and then on the flanker side, that's where you have to look at most of the volume being on bring your own device, but what's important there is to really think about the write bundles like our kudo happy stock, which offer streaming and internet and and.

Zainul Mawji: But what's important there is to really think about the right bundles, like our KUDO HappyStack, which offers streaming and internet and, you know, a lower data plan on mobility as a really attractive bundle, so that you can curtail some of the switching behavior that would be dominant in that part of the market. So that's how we're kind of trying to ensure we differentiate our brands. Thanks for the color.

Zainul Mawji: A lower <unk>.

Zainul Mawji: Data plan on mobility as a as a really attractive bundle. So that you can you can curtail some of the switching behavior that will be dominant in that part of the market. So that's how we're kind of trying to ensure we differentiate our brand.

Stephanie Doris Price: And one of the ones for me just on Telus Health, it looks like revenue was down a bit year over year. Just curious about the revenue drivers in the quarter, and how we should think about Crossel at this point from Telus Health. Naveen, do you want to speak to that one, please?

Speaker Change: Thanks for the color and one other one from me just on Telus health. It looks like revenue was down a bit year over year, just curious about the revenue drivers in the quarter and how we should think about that cross sell at this point from telecom.

Naveen: <unk> do you want to speak to that one please.

Navin Arora: Yeah, absolutely, Darren. So you're absolutely right, Stephanie, we were unhappy with where our revenue growth landed in Q1. But, you know, our focus on channel expansion, distribution, and customer experience excellence investments is notably starting to pay off. So just to give you an example, year to date, we've driven strong performance, delivering about 111% of our sales bookings across our health lines of business. And that represents a 17% year over year increase in the volume of deals and $175 million in total contract value.

Naveen: Yes, absolutely there.

Naveen: So youre absolutely right, Stephanie we were unhappy with where our revenue growth landed in Q1.

Navin Arora: But our focus on channel expansion distribution and customer experience excellent excellence investments is notably.

Navin Arora: Notably starting to pay off so just to give you an example.

Navin Arora: Year to date, we've driven a strong performance delivering.

Navin Arora: About 111% target on our sales bookings.

Navin Arora: Across our health lines of business and that represents a 17% year over year increase in volume of deals and $175 million in total contract value and then as another example of the momentum we're building our <unk> business unit habits.

Navin Arora: And then, you know, as another example of the momentum we're building, our payvider business unit had its best sales quarter on record. So we're going to, you know, we're going to still continue to see some macroeconomic headwinds.

Navin Arora: Best sales quarter on record so we're going to we're going to still continue to see some macroeconomic headwinds but.

Navin Arora: But, you know, through our aggressive focus on growth and synergies, we actually expect a very steady improvement in revenue growth and profitability in the coming quarters. And, you know, with the big parts of our integration of Lifeworks behind us, we actually see a pretty great growth opportunity ahead of us working as one team, you know, one unified culture, one unified set of priorities, and, you know, really driving some increased sales performance that's going to drive that revenue growth.

Navin Arora: Through our aggressive focus on growth and synergies, we actually expect very steady improvement in revenue growth and profitability in the.

Navin Arora: Coming quarters and.

Navin Arora: With the with the.

Navin Arora: Big parts of our.

Navin Arora: Integration of life works behind Us.

Navin Arora: We actually see a pretty great growth opportunity ahead of us working as one team one unified culture, one unified set of priorities and.

Navin Arora: Really driving some increased sales performance, that's going to drive that revenue growth. So we're actually expecting.

Navin Arora: So we're actually expecting strong revenue growth coming in Q2 and beyond, and tied to that, we're actually seeing some very good results on www.telus.com.au. And then the last thing I would say is we have a tremendous cross-sell opportunity across Telus Health and the rest of our B2B telecom and other assets. And those opportunities are already starting to bear fruit for us.

Navin Arora: Strong revenue growth.

Navin Arora: In.

Navin Arora: Q2, and beyond and and tied to that we're actually seeing some very good.

Navin Arora: Success, working with Telus International in terms of not only driving cost savings, but really driving.

Navin Arora: Digital and automation capabilities and those capabilities are not only help us on the cost side, but they're also going to help create.

Navin Arora: Differentiation in our capabilities, which again is going to allow us to drive greater and greater revenue opportunities and then the last thing I would say is we.

Navin Arora: We have.

Navin Arora: Tremendous cross sell opportunity across Telus health in the rest of our <unk> telecom and other assets and those opportunities are already starting to bear fruit for us and I see that as a very important developing story, that's going to give us a competitive advantage going forward and really elevate.

Navin Arora: And, you know, I see that as a very important developing story that's going to give us a competitive advantage going forward and really elevates the conversation with our customers at a strategic level. And, and, you know, that's going to become more and more part of our growth as we go forward. Would that lock you there?

Navin Arora: The conversation with our customers at a strategic level and.

Navin Arora: <unk>.

Navin Arora: That's going to become more and more.

Navin Arora: Part of our growth as we go forward.

Navin Arora: With that back to here.

Navin Arora: Yes.

Zainul Mawji: Yeah. Thanks, Stephanie. Mihai, we have time for two more questions.

Speaker Change: Thanks, Stephanie.

Speaker Change: We have time for two more questions.

Operator: Yes, of course. The next question comes from Sebastian Pitti from JP Morgan. Please go ahead.

Zainul Mawji: Yes of course, our next question comes from Sebastian <unk> from J P. Morgan.

Sebastiano Carmine Petti: Please go ahead.

Operator: Okay.

Sebastiano Carmine Petti: Hi, thank you for taking the question. Just wanted to follow up, Doug, on one of your comments towards the end of your prepared remarks, just anticipating the improvement in TI and health and agriculture as we kind of get into the second half of the year. Is that because you get to easier comps, or do you see demonstrable change in demand within those different revenue streams, within those different business lines? And specifically, on Telus Health, I mean, the guidance that Telus Health has given, and Telus International has given, I'm sorry, anticipates, you know, sequential declines and then exit rates that are, again, pretty healthy. Again, just trying to underpin or, you know, just trying to think about the underlying drivers of demand and what is implied within that, and what is giving you confidence in that.

Sebastiano Carmine Petti: Hi, Thank you for taking the question just wanted to follow up Doug on one of your comments towards the end of the prepared remarks.

Sebastiano Carmine Petti: Anticipating the improvement in Ti and health and agriculture, as you kind of get into the second half of the year.

Sebastiano Carmine Petti: Is that because you get to easier comps or do you see demonstrable change in demand within those deferred revenue.

Sebastiano Carmine Petti: And those different business lines, and specifically on Telus health.

Sebastiano Carmine Petti: The guidance that tell us help us given in Telus International as you know I'm sorry.

Sebastiano Carmine Petti: We anticipate a sequential declines and then exit rates.

Sebastiano Carmine Petti: Sequential extra rate centered again pretty healthy again, I'm, just trying to underpin or just trying to think about the underlying drivers of demand and what is implied within that and what is giving you confidence in that and then just kind of going back to <unk> question and just thinking about the revenue context within the <unk> revenue guidance, what do we need to see within consumer within.

Douglas French: And then just kind of going back to Maher's question, just thinking about the revenue context within the T-TECH revenue guidance. What do we need to see within consumer within health to kind of feel more comfortable about that revenue range? Thank you.

Douglas French: Health kind.

Douglas French: Kind of feel more comfortable about that revenue rich. Thank you.

Douglas French: Okay, we'll do a bit of a daisy chain on this Doug, we'll kick it off briefly, and I'll ask Navin to make the commentary on B2B health, Zainulon, consumer health, and Jeff as it relates to TI. Yeah, so just overall, we have confidence from the perspective of we've been going through our plans on the funnel, as you've heard from Navin, you will hear from Jeff in a moment on the losses that we had had in TI and it's on a path to recovery based on sales with Telus, with Google, with others and confidence in ag as we've talked about on from Navin on the funnel in conjunction with the largest sales we've had in the last two quarters.

Speaker Change: Okay, we will do a bit of a daisy chain.

Speaker Change: Doug well will kick it off briefly then.

Douglas French: Levine to make the commentary on <unk> Hill, Zainal on consumer health and Jeff as it relates to Ti.

Speaker Change: Doug wanted to go ahead. So just overall, we have confidence from the perspective of we.

Douglas French: We've been going through our plans on the funnel as you have heard from from the bin you will hear and you'll hear from Jeff in a moment on that.

Douglas French: The losses that we.

Douglas French: Has had had in Ti and it's on a path to recovery based on sales with tell us with Google with others.

Douglas French: And our confidence in AG as we've talked about on on from Nadine on the funnel in conjunction with the largest sales we've had in the last two quarters. So.

Douglas French: So it is all aligned with our projections, is all aligned with our guidance. We do believe the contributions are aligned with what we have been suggesting to the street and our market, or with our targets for health, ag, and TI. There's nothing abnormal in any of those beyond what we've already highlighted.

Douglas French: It is all aligned with our projection is all aligned with our guidance. We do believe the contributions are aligned with what we have been.

Douglas French: Suggesting to the to the to the street in our market our targets for Health AG MTI.

Douglas French: Nothing abnormal in any of those beyond what we've already already highlighted.

Jeffrey D. Puritt: Jeff, you want to follow up quickly, briefly? Sure, we guided at first instance and then reiterated the first half/second half split for revenue 48 52% for adjusted even to 45 55. That seasonality is somewhat consistent over the past several years and further reinforced by the visibility we have for the wins we've had in Q1 in particular, just over the last couple of months.

Douglas French: Jeff do you want to follow up quickly briefly.

Jeffrey D. Puritt: Sure.

Jeffrey D. Puritt: Guided in first instance, and then reiterated a first half second half split for revenue 48, 52% for adjusted EBITDA of $45 55 that seasonality is somewhat consistent over the past several years and further reinforced by the visibility we have for the.

Jeffrey D. Puritt:

Jeffrey D. Puritt: Wins, we've had in Q1 in particular.

Jeffrey D. Puritt: To Doug's comment a moment ago, it's also predicated upon stabilization in the historical decline and now hopefully coming out of that with our social media clients as well as continued strong growth, 30% year-over-year for the quarter serving Google and 22% year-over-year for the first quarter serving Telus. So we think that the view we've reaffirmed is prudent and appropriate, reflective of what we're actually seeing, and it's not entirely inconsistent with our historical season. Thanks, Jeff.

Jeff: Just over the last couple of months to Doug's comment a moment ago. It's also predicated upon stabilization in the historical decline and now hopefully coming out of that with our social media client as well as continued strong growth.

Jeffrey D. Puritt: 30% year over year for the quarter, serving Google and 22% year over year in the first quarter, serving tell us so.

Jeffrey D. Puritt: So we think that the view, we've reaffirmed is prudent and appropriate reflective of what we're actually seeing and not entirely inconsistent with our historical seasonal profile.

Speaker Change: Thanks, Jeff.

Jeffrey D. Puritt: Okay.

Navin Arora: Yeah, thanks, Darren. Oh, just answer the question directly: Is it real growth? Absolutely.

Jeff: Yes, thanks Darren.

Speaker Change: So just to answer the question directly is.

Speaker Change: Is it real growth yeah. It absolutely is assured.

Navin Arora: You know, I shared, The Sales Booking In both health and agriculture, we have a really excellent set of assets, really differentiated products and capabilities. And one of the things that we've been really focused on is investing in our channel and distribution strength to really drive the volume and the quality of sales. And so we're, you know, we've made those investments throughout 2023 but really accelerated them in the back half of 2023. And now we're starting to see those investments pay dividends.

Navin Arora: Sales booking.

Navin Arora: Numbers for health in Q1, and you know that that absolutely translates into the revenue growth and.

Navin Arora: In terms of the drivers of the demand I really believe in both health and agriculture, we have really excellent set of.

Navin Arora: Assets.

Navin Arora: Really differentiated.

Navin Arora: <unk> capabilities and one of the things that we've been really focused on is investing in our <unk>.

Navin Arora: Channel and distribution strength to really drive the volume and the quality of sales and so we're we've made those investments.

Navin Arora: Throughout 2023, but really accelerated them in the back half of 2023 and now we're starting to see those investments pay dividends and so for example, and as Darren mentioned.

Navin Arora: And so, you know, for example, as Darren mentioned, we had our best two back-to-back quarters in terms of sales growth in the agriculture business as well, our agriculture and consumer goods business. And in our animal agriculture space, we're starting to really see that high single-digit revenue growth kick in now quarter after quarter. So I think we've got a great story to tell, differentiated products and services, and now the right investments around channel and distribution, and we should see that actually accelerate month over month as those investments start to really mature and we get through the learning curve on how to sell these products and services and start to see that acceleration and growth.

Navin Arora: We had our best two back to back quarters in terms of sales growth in the agriculture business as well, our agriculture and consumer goods business and.

Navin Arora: In our animal agriculture space, we're starting to really see that high single digit revs.

Navin Arora: Revenue growth kick in now quarter after quarter. So I think we've got a great story to tell and differentiated products and services.

Navin Arora: Now the right investments around channel and distribution and we should see that actually accelerate.

Navin Arora: Over months adds those investments start to really mature and we get through the learning curve on.

Navin Arora: How to sell these products and services and and start to see that acceleration in growth and the last thing I'll say is we've got an amazing list of.

Navin Arora: And the last thing I'll say is we've got an amazing list of our base of customers across Telus Business Solutions, across Telus International, across Telus Agriculture, and we're just starting on our journey in terms of driving health penetration, our health product penetration into that base. And so when we look at it from a B2B perspective, our product into the market with the latest health capability of our total mental health product. You know, we just see that accelerating on top of our existing health products and services. So I think it's a really good development story.

Navin Arora: Our base of customers.

Navin Arora: Across <unk> business solutions across Telus International Cross tell us agriculture, and we're just starting on our journey in terms of driving health penetration, our health product penetration into that base and so when we look at it from a BBB perspective, our product intensity opportunity there.

Navin Arora: It goes beyond just telecom services, but obviously into these great health capabilities and with the latest health capability of our total mental health.

Navin Arora: Product.

Navin Arora: We just see that accelerating on top of our existing health products and services. So I think it's a really good developing story and we're going to see some.

Navin Arora: Nice.

Navin Arora: Steady acceleration as the quarters go.

Zainul Mawji: Stanley, you want to pile on about consumer health, or do you want to leave it there? I can I can do maybe just offer one. I want to take this element and just say that fundamentally, I don't think on our revenue profile, we can comment on what we think the competitive environment will do or won't do. What we're going to focus on is insulating ourselves accordingly with the capabilities that we have that are differentiated and continuing to grow those capabilities, whether they're consumer health-oriented, or on the back of our home automation capability suite, or on the back of our very differentiated OTT offerings.

Speaker Change: So anything you want to pile on on consumer health or didn't want to leave it there.

Speaker Change: I can I can do maybe just stop for one.

Stanley: Element and just say that fundamentally.

Zainul Mawji: I don't think our revenue on a revenue profile, we can comment on what we think that competitive environment will will do work won't do what we're going to focus on is insulating ourselves accordingly, with the capabilities that we have that are differentiated and continuing to grow those capabilities, whether they're consumer health oriented or on the <unk>.

Zainul Mawji: <unk> of our home automation capability suite are on the back of our.

Speaker Change: Very good.

Speaker Change: Differentiated OTT offering so we're going to continue to focus on that and in parallel on cost to serve and continue to differentiate our brands accordingly, and add more value to <unk>.

Zainul Mawji: We're going to continue to focus on that and, in parallel, on cost to serve and continue to differentiate our brands accordingly and add more value to customers based on those differentiated offerings that are really unmatched in the market. And because of our relationship with TI, our speed to market capability and delivery as well as our ability to own those assets and own the IP of those assets is also differentiated relative to our peers and changes the cost to serve profile of offering new services. Thanks. Thank you. Mihaly, our final question, please.

Zainul Mawji: Customers based on differentiated offerings that are really unmatched in the market and because of our relationship with ti or speed to market capability and delivery as well as our ability to own those assets and own the IP of those assets is.

Zainul Mawji: Also differentiated relative to our peers and changes the cost to serve a profile of offering new services.

Zainul Mawji: Thanks.

Operator: Yes, the last question in the queue comes from Simon Flannery from Morgan Stanley. Please go ahead. Right. Thanks for fitting me in there.

Mihaly: Our final question. Please.

Zainul Mawji: Yes.

Operator: Last question in the queue comes from Simon Flannery.

Simon William Flannery: From Morgan Stanley. Please go ahead.

Operator: Great.

Simon William Flannery: If I could return to the convergence and the bundling question, we've seen Verizon and now AT&T really lean into fixed wireless for business, and they like the lower usage characteristics versus a consumer product. Now that you've rolled out 5G and we're seeing a lot of interesting business use cases, whether that's for backup or for tougher-to-cover locations, it would be great to see how you're thinking about that as an extra product to leverage your 5G network outside, particularly where you have fiber. Thanks. Naveen, do you want to speak to that as it relates to the B2B component or Zainul holistically? Naveen, go ahead.

Simon William Flannery: Thanks for fitting me in there if I could return to the convergence on the bundling question, we've seen Verizon and now AT&T really lean into fixed wireless for business and they like the.

Naveen: Lower usage characteristics versus a consumer product now that you've rolled out <unk> and we're seeing a lot of interesting business use cases, whether that's for backup or for tougher to cover locations would be great to see how youre thinking about that.

Naveen: An extra product to leverage your <unk> network.

Naveen: Correct me, if where you have fiber thanks.

Speaker Change: Dan you want to speak to that as it relates to the <unk> component.

Naveen: Our Santa Holistically.

Speaker Change: <unk> go ahead.

Navin Arora: Yeah, thanks for the question, Simon. Yeah, absolutely. We're looking at how we can bring fixed wireless in for business, and you hit the comment bang on because, you know, the usage characteristics are, are different. And also the timing of usage is different.

Naveen: Yes, thanks for the question Simon Yes.

Naveen: Yes, absolutely.

Naveen: We're looking at.

Naveen: How we can.

Naveen: Bring fixed wireless seamless or business.

Naveen: You hit the comment Bang on because.

Naveen: Usage characteristics are are different.

Naveen: And also the timing of usage is different and so that allows us to manage.

Navin Arora: And so that allows us to manage, you know, spectrum in an inefficient way as we look to do this. So I, you know, I, we're absolutely looking at it. We're looking at how we accelerate it in relation to, you know, where we have pure fiber and other network capabilities. And, you know, it's something that, you know, we'll talk more about in the future. Thank you.

Navin Arora: Spectrum.

Navin Arora: In an inefficient way as we look to do this so.

Navin Arora: So we are absolutely looking at it we're looking at how we accelerated in.

Navin Arora: Relation to where we have pure fiber and other network capabilities.

Navin Arora: Something that we know will talk more about into the future.

Navin Arora: Thank you.

Darren Entwistle: Okay, we'll start off there, but it's, I think, important to point out that we've been deploying fixed wireless as an access methodology since about 2009. So a very familiar complement to what we're doing on broadband wireline and wireless along the way. Thank you, Simon.

Speaker Change: Yeah, well thought out there, but I think important to point out we've been deploying fixed wireless as an access methodologies since about 2009, so well.

Darren Entwistle: Well familiar complement to what we're doing on broadband wireline and wireless along the way. Thank you Simon.

Robert Mitchell: Thanks, Simon. Thanks, everyone, for joining us today. If there's any follow-ups, please feel free to reach out to the IR team. Mihaly, over to you.

Darren Entwistle: Thanks, Simon and thanks, everyone for joining us today. If there is any follow ups. Please feel free to reach out to the IR team.

Mihaly: Over to you.

Operator: This concludes the TELUS 2024 Q1 earnings conference call. Thank you for your participation and have a nice day. Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music, ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Copyright © 2020, New Thinking Allowed Foundation, ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Music Music Music Music Music Music Music, Good day and welcome to the Telus 2024 Q1 earnings conference call. I would like to introduce your speaker, Robert Mitchell. Please go ahead.

Speaker Change: This concludes the <unk> 'twenty 'twenty four Q1 earnings conference call. Thank you for your participation and have a nicely.

Operator: Yes.

Operator: Yeah.

Operator: [music].

Operator: [music].

Operator: [music].

Operator: Good day and welcome to the <unk> 2020 for Q1 earnings Conference call I would like to introduce your Speaker Robert Mitchell. Please go ahead.

Robert Mitchell: Hello, everyone. Thank you for joining us today. Our first quarter 2024 news release, MD&A financial statements, and detailed supplemental investor information were posted on our website earlier this morning. On our call today, we will begin with remarks from Darren and Doug. For the Q&A portion, we will be joined by other members of our executive leadership team. In brief, prepared remarks, slides, and answers to questions contain forward-looking statements. However, actual results could differ materially from those statements.

Robert Mitchell: Hello, everyone. Thank you for joining us today, our first quarter 2024 news release MD&A financial statements and detailed supplemental investor information were posted on our website earlier this morning.

Robert Mitchell: Our call today, we will begin with remarks by Darren and Doug for the Q&A portion will be joined by other members.

Robert Mitchell: Of our executive leadership team briefly prepared remarks slides and answers to questions contain forward looking statements actual results could differ materially from those statements and assumptions on which they are based in the material risks that could cause them to differ are outlined in our public filings with securities commissions in Canada, and the U S, including our first quarter 2024 annual 2000.

Robert Mitchell: The assumptions on which they're based and the material risks that could cause them to differ are outlined in our public filings with securities commissions in Canada and the U.S., including our first quarter 2024 and annual 2023 MD&A. With that, over to you, Darren. Thanks, Rick. Hello, everyone.

Robert Mitchell: 'twenty three MD&A with that over to you Darren.

Darren Entwistle: In the first quarter, our team once again delivered against our differentiated growth strategy, leveraging our superior asset portfolio, consistent execution track record, and proactive cost efficiency initiatives to deliver industry-leading customer additions and solid financial results. This was achieved against the backdrop of a pretty dynamic operating environment, as you all well know. Our robust performance is underpinned by our strategic focus on margin-accretive customer growth, our customer-centric culture, and our globally leading broadband network.

Darren Entwistle: Thanks, Rick and Hello, everyone in the first quarter our team once again delivered against our differentiated growth strategy, leveraging our superior asset portfolio consistent execution track record and proactive cost efficiency initiatives to deliver industry, leading customer additions and solid financial results.

Darren Entwistle: Achieved against the backdrop of a pretty dynamic operating environment as you all well know.

Darren Entwistle: Our robust performance is underpinned by our strategic focus on margin accretive customer growth, our customer centric culture, and our globally, leading broadband networks.

Darren Entwistle: This enabled our strongest first quarter on record, with industry-leading total customer net additions of 209,000, up 28% on a year-over-year basis. Telus' industry-best growth reflects the consistent potency of our operational execution and our unmatched bundled portfolio offerings across mobile and home. Our team's passion for delivering customer service excellence contributed to continued leading loyalty across our key product lines. In the first quarter, Telus achieved resilient EBITDA growth of 4.3% and margin expansion of 170 basis points.

Darren Entwistle: This enabled our stronger strongest first quarter on record with industry, leading total customer net additions of 209000 up 28% on a year over year basis.

Darren Entwistle: Telus is industry best growth reflects the consistent potency of our operational execution, and our unmatched bundled portfolio offerings across mobile and at home.

Darren Entwistle: Our passion for delivering customer service excellence contributed to continued leading loyalty across our key product lines now.

Darren Entwistle: In the first quarter, Telus achieved resilient EBITDA growth of 43% and margin expansion of 170 basis points.

Darren Entwistle: These results reflect the progression of our ongoing transformational efficiency programs that are clearly bearing fruit. Looking at our T-TECH mobile results, Telus realized Robots' first quarter customer growth of 146,000 net additions, our strongest first quarter on record.

Darren Entwistle: These results reflect the progression of our ongoing transformational efficiency programs that are clearly bearing fruit.

Darren Entwistle: Looking at our <unk> mobile our results tell us realized robots first quarter customer growth of 146000 net additions our strongest first quarter on record.

Darren Entwistle: This included healthy mobile phone net additions of $45,000, relatively stable as compared to this time last year. This consistent result was driven alongside our continued focus on profitable, margin-accretive customer growth, and of course, that's a hallmark of our organization. Indeed, we are continuing and now doubling down on this consistent and disciplined approach as we progress through 2024 and beyond. Our efforts in this regard will ensure that our mobile customer growth drives EBITDA and cash flow accretion. That is the formula for this organization. Mobile subscriber growth also included record first quarter connected device net additions of 101,000, which represents a 74% increase over the prior year.

Darren Entwistle: This included healthy mobile phone net additions of 45000 relatively stable as compared to this time last year.

Darren Entwistle: This consistent result was driven alongside our continued focus on profitable margin accretive customer growth and of course, that's a hallmark of our organization.

Darren Entwistle: Indeed, we are continuing and now doubling down on this consistent and disciplined approach as we progress through 2024 and beyond.

Darren Entwistle: Our efforts in this regard will ensure our mobile customer growth drive EBITDA and cash flow accretion that is the formula for this organization.

Darren Entwistle: Mobile subscriber growth also included record first quarter connected device net additions of 101000, which.

Darren Entwistle: Resents, a 74% increase over the prior year.

Darren Entwistle: This reflects continued strong momentum with respect to our 5G and IoT B2B solutions. Additionally, our team delivered another quarter of leading loyalty results, which continues to be the hallmark of the Telus team. Blooded mobile phone churn of 1.13% was up against the backdrop of elevated competitive activity relative to seasonal trends and not clearly at a level where this organization is content. However, this represented an industry-best result by a substantial margin of up to 46 basis points versus our peers. Notably, post-paid mobile phone churn was 0.91%, as we have now entered the 11th consecutive year below the 1% level.

Darren Entwistle: This reflects continued strong momentum with respect of our bi <unk> and Iot and <unk> solutions.

Darren Entwistle: Importantly, our team delivered another quarter of leading loyalty results, which continues to be the hallmark of the Telus team.

Darren Entwistle: Blended mobile phone churn of $1, one 3% was up against the backdrop of elevated competitive activity relative to seasonal trends and not clearly at a level, where this organization is content.

Darren Entwistle: However, this represented an industry best result by a substantial margin of up to 46 basis points versus our peers.

Darren Entwistle: Notably postpaid mobile phone churn was zero that 91% as we now have entered the 11th consecutive year below the 1% level. This is an outstanding result, and it's an outstanding result on a global basis reflective of the industry based customer experience that we deliver that best.

Darren Entwistle: This is an outstanding result, and it's an outstanding result on a global basis, reflective of the industry-based customer experience that we deliver that's best in class. And it's done time and again by our Telus team, delivering it over our world-leading broadband networks. And that, for us, is the blend.

Darren Entwistle: Think class and it's done time, and again by our Telus team delivering over our world, leading broadband networks and that for US is the blurred network excellence combined with the excellence of our people and our digital technology at work.

Darren Entwistle: Network excellence combined with the excellence of our people and our digital technology at work. To close on mobile, first quarter ARPU at $59.31 was down year over year. This was the result of intense promotional market activity and heightened competition, and in particular, a cross-device financing subsidy. Our flanker brands offer strong customer value in certain segments with lower associated ARPU, but they have attractive AMPU attributes. Through digital transformation, we are lowering our cost to serve across the board, inclusive of supporting a compelling ampou for BYOD and flanker activity. Furthermore, with respect to our premium brand, we are doubling down to reinforce our long-standing and distinctive focus on ampu-accretive loading.

Darren Entwistle: Those are mobile first quarter ARPA were $59 31, and was down year over year. This was a result of intense promotional market activity and heightened competition and in particular across device financing subsidies.

Darren Entwistle: Our flagship brands offer a strong customer value in certain segments with lower associated <unk>, however, notably attractive and who attributes.

Darren Entwistle: Through digital transformation, we are lowering our cost to serve across the board.

Darren Entwistle: Inclusive of supporting at compelling Abu for B Y O D and.

Darren Entwistle: And flanker activity.

Darren Entwistle: Furthermore, with respect to our premium brand, we are doubling down to reinforce our long standing and distinctive focus on add through accretive loading.

Darren Entwistle: Notably, last week, we implemented changes to evolve our go-to-market offerings across our brands and, particularly, in order to enrich our premium Telus offering and afford customers enhanced and differentiated value. These efforts will continue to be supported by our team's passion for winning and retaining profitable customers, whilst remaining highly disciplined in respect of device subsidies. Furthermore, we continue to expect connected devices and IoT to increasingly contribute to network revenue, ARPU, and AMPU growth as we move forward.

Darren Entwistle: Notably last week, we implemented changes to evolve our go to market offerings across our brands and particularly in order to enrich our premium telus offering and afford customers enhanced and differentiated value.

Darren Entwistle: These efforts will continue to be supported by our team's passion for winning and retaining profitable customers whilst remaining highly disciplined in respect of device subsidies.

Darren Entwistle: Furthermore, we continue to expect connected devices and Iot to increasingly contribute to network revenue.

Darren Entwistle: <unk> and <unk> growth as we move forward, regardless of the external environment within which we find ourselves.

Darren Entwistle: First quarter ARPU, alongside leading customer loyalty, continues to drive our industry-best mobile phone lifetime revenue, which consistently exceeds our national peers by a considerable margin, a considerable margin of up to 44%, again in Q1. Now let's take a look at our T-TECH fixed operating results, where Telus delivered another quarter of industry-best total wireline customer growth. Indeed, our team achieved robots first quarter net additions of 30,000. We also continue to drive healthy growth in our TV product line with industry-leading net additions of 19,000, more than double the prior year. Modest residential voice losses of some 8,000 were flat over last year and again represented an industry-best result.

Darren Entwistle: First quarter ARPA, alongside leading customer loyalty continues to drive our industry best mobile phone lifetime revenue, which consistently exceed our national peers by a considerable margin a considerable margin of up to 44% again in Q1.

Darren Entwistle: Now, let's take a look at our T chek fixed operating results, where Telus delivered another quarter of industry best total wireline customer growth and.

Darren Entwistle: Indeed, our team achieved robust first quarter Internet net additions of 30000.

Darren Entwistle: We also continue to drive healthy growth in our TV product line with industry, leading net additions of $19000 more than double the prior year.

Darren Entwistle: Modest residential voice losses of some 8000 were flat over last year and again represented an industry best result.

Darren Entwistle: Strong and leading security net additions of 22,000 were also similar to last year and continue to reflect our successful multi-product penetration strategy and also reflect a distinctive performance premium on loading versus our peers. And of course, that's reflected as well within the way we bundle security within the FFH portfolio at Telus. Overall, our industry-leading external fixed net additions of 63,000, notably, again, a Q1 record, demonstrate the strength of our unique and highly attractive bundled offers across our unmatched portfolio of products and services.

Darren Entwistle: Strong and leading security net additions of 22000 were also similar to last year and continued to reflect our successful multi product penetration strategy.

Darren Entwistle: And also reflect a distinctive performance premium on loading versus our peers and of course, that's reflected as well within the way we bundle security within the <unk> portfolio would tell us.

Darren Entwistle: Overall, our industry, leading external <unk> net additions of 63000, notably again, a Q1 record demonstrates the strength of our unique and highly attractive bundled offers across our unmatched portfolio of products and services.

Darren Entwistle: These will be further enhanced by continued and significant innovation on our home automation roadmap and the products that are resident within that particular ecosystem, which really does create a level of excitement in terms of new revenue sources to come in the quarters ahead. Our superior bundled offerings are buttressed by our leading customer experience over our ever-expanding, world-leading, pure fiber and wireless broadband network. These results are also bolstered by our strong and highly differentiated social capitalism attributes, which truly underpin the strength of the Telus brand.

Darren Entwistle: These will be further enhanced by continued and significant innovation on our home automation roadmap and the products that are resident within that particular ecosystem.

Darren Entwistle: That really does create a level of excitement in terms of new revenue sources to become in the quarters ahead.

Darren Entwistle: Our superior bundled offerings are buttressed by our leading customer experience over our ever expanding world, leading pure fiber and wireless broadband networks.

Darren Entwistle: These results are also bolstered by our strong and highly differentiated social capitalism attributes that truly underpinned the strength of the Telus brand.

Darren Entwistle: Let's turn now and look at Telus Business Solutions, or TBS, which delivered another strong quarter and again differentiates us from telco B2B performance on a global basis. In the first quarter, TBS achieved robust EBITDA and cash flow contribution growth of 4.9%, respectively.

Darren Entwistle: Let's turn now and look at <unk> business solutions, or GBS, which delivered another strong quarter and again differentiates us from telco <unk> performance on a global basis.

Darren Entwistle: In the first quarter GBS achieved robust EBITDA and cash flow contribution growth of four and 9% on a respective basis.

Darren Entwistle: Building on our track record of continued profitable growth, TBS experienced strong demand and product growth across all areas of our business. These efforts are progressing our goal of leading the market across both core telecom capabilities, as well as our 5G-powered software-as-a-service and data insights industry solutions. And, on the back of record sales performances over the past two quarters, we accelerated our momentum in the first quarter. Indeed, we achieved a 36% year-over-year increase in bookings in consumer goods and agribusiness. Furthermore, we delivered 8% revenue growth in animal agriculture.

Darren Entwistle: Building on our track record of continued profitable growth TBS experienced strong demand and product growth across all areas of our business.

Darren Entwistle: These efforts are progressing on our goal of leading the market across both core telecom capabilities as well as our <unk> powered software as a service and data insights industry solutions.

Darren Entwistle: Intel's agriculture, and consumer goods on the back of record sales performances over the past two quarters, we accelerated our momentum in the first quarter. Indeed, we achieved a 36% year over year increase in bookings and consumer goods and agribusiness.

Darren Entwistle: Furthermore, we delivered 8% revenue growth and animal agriculture.

Darren Entwistle: We remain confident in the strong growth potential in this business and anticipate positive mid to high single-digit revenue growth in the second half of the year. Now, let's turn now and take a look at our Telus Health business. We achieved first quarter revenues of $420 million, alongside 28% EBITDA contribution growth.

Darren Entwistle: We remain confident in the strong growth potential in this business and anticipate positive mid to high single digit revenue growth in the second half of the year.

Darren Entwistle: Let's turn now and take a look at our Telus health business.

Darren Entwistle: We achieved first quarter revenues of $420 million alongside 28% EBITDA contribution growth.

Darren Entwistle: On the back of on-target sales and bookings in Q1, we expect steady improvement in health services revenue growth in the quarters ahead. Strong first quarter EBITDA growth was supported by the achievement of $251 million in combined annualized lifeworks integration and other cost synergies to date, leveraging Telus International along the way. We continue to work towards our overall Telus Health Synergy objective of $427 million to be realized by the end of 2025, as we've committed to the street in that regard.

Darren Entwistle: On the back of on target sales and bookings in Q1, we expect steady improvement in health services revenue growth in the quarters ahead.

Darren Entwistle: Strong first quarter EBITDA growth was supported by the achievement of $251 million in combined annualized Lifeworks integration and other cost synergies to date, leveraging <unk> international along the way.

Darren Entwistle: We continue to work towards our overall Telus health synergy objective of $427 million to be realized by the end of 2025 as we've committed to the street in that regard.

Darren Entwistle: Furthermore, we drove a 7% year-over-year increase in our globalized coverage, which is now reaching nearly 72 million people. Moreover, we supported health outcomes on close to 160 million digital health transactions in the quarter, up 7% on a year-over-year basis. In addition, we increased our virtual care membership to nearly 6 million people, up 13.5% on a year-over-year basis.

Darren Entwistle: Furthermore, we drove a 7% year over year increase in our Globalised covered that is now reaching nearly 72 million people.

Darren Entwistle: Moreover, we supported health outcomes on close to 160 million digital health transactions in the quarter up 7% on a year over year basis in.

Darren Entwistle: In addition, we increased our virtual care membership to nearly 6 million people up 13, 5% on a year over year basis again.

Darren Entwistle: As we continue to make strong progress scaling Telus Health and Telus Agriculture and Consumer Goods, we remain intensely focused on accelerating the significant growth profile of these highly differentiated global businesses that are thirsty for digital disruption to deliver better client outcomes. Importantly, we are leveraging the expertise, experience, and high-performance culture and talent of our entire team, inclusive of leveraging significant cross-selling synergies across all lines of our business. This is bolstered by the blue chip customer relationships, leading digital customer experience, and AI cost transformation capabilities of Telus International. On that note, earlier today, TI also reported its first quarter results.

Darren Entwistle: As we continue to make strong progress scaling Telus health and Telus agriculture, and consumer goods, we remain intensely focused on accelerating the significant growth profile of these highly differentiated global businesses that are thirsty for digital disruption to deliver better client outcomes.

Darren Entwistle: Importantly, we are leveraging the expertise experience and high performance culture and talent of our entire team inclusive of leveraging significant cross selling synergies across all lines of our business.

Darren Entwistle: This is buttressed by the blue chip customer relationships, leading digital customer experience and AI cost transformation capabilities of Telus International.

Darren Entwistle: On that note earlier today Gi also reported its first quarter results.

Darren Entwistle: Jeff and the team announced robust cash flow generation amidst what remains a challenging global macroeconomic operating environment and a difficult prior year comparable. Despite the near-term top-line challenges, our TI team has executed against significant cost efficiency programs over the past 10 months. These efforts are positioning the business to deliver a strong 2024 in totality. TI's capacity to generate strong cash flows remains highly visible in its quarterly results. Committed to delivering profitable growth, TI's ability to surface further efficiency gains will also help fuel its investment in sales and marketing, along with ongoing technological innovation. Telus remains highly confident in TI's strategy and investment thesis.

Darren Entwistle: Jeff and the team announced robust cash flow generation amidst what remains a challenging global macroeconomic operating environment and a difficult prior year comparable.

Darren Entwistle: Despite the near term topline challenges our team has executed against significant cost efficiency programs over the past 10 months. These.

Darren Entwistle: These efforts are positioning the business to deliver a strong 2024 in totality.

Darren Entwistle: Gis capacity to generate strong cash flows remains highly visible and its quarterly results.

Darren Entwistle: Committed to delivering profitable growth <unk> ability to serve its further efficiency gains will also help fuel its investment in sales and marketing along with ongoing technology innovation.

Darren Entwistle: Tell us remains highly confident in Ti strategy and investment thesis.

Darren Entwistle: This is amplified by meaningful opportunities in respect of digital transformation and, particularly, TI's capabilities in AI solutions, including generative AI, and this technology's proliferation on a worldwide basis. The continuing critical importance of differentiated digital customer experience solutions in the market, including a welcome and needed disruption from Gen AI, is enabling us to serve customers better and win incremental business along the way. This is creating a vibrant tailwind for both TI and Telus that will bear fruit over the medium and longer term in terms of growth and profitability.

Darren Entwistle: This is amplified by meaningful opportunities in respect of digital transformation, and particularly with Gis capabilities in AI solutions, including generative AI and this technologies proliferation on a worldwide basis.

Darren Entwistle: The continuing critical importance of differentiated digital customer experience solution in the market, including a welcome and needed disruption from Gen. AI is enabling us to serve customers better and win incremental business along the way.

Darren Entwistle: This is creating a vibrant tailwind for both Gi and tell us that will bear fruit over the medium and longer term in terms of growth and profitability.

Darren Entwistle: Doug's going to have an opportunity in a minute to provide further commentary on both T-TEC and Telus International's results. In closing, the record customer growth we continue to report is underpinned by our dedicated team who are passionate about delivering superior service offerings and digital capabilities over our world-leading wireless and pure fiber broadband network. The significant broadband network investments we've made are driving extensive socioeconomic benefits for Canadians and communities across the country and will continue to do so for decades to come.

Darren Entwistle: Doug is going to have an opportunity in a minute to provide further commentary on both T Chek and Telus International's results.

Darren Entwistle: In closing the record customer growth. We continue to report is underpinned by our dedicated team who are passionate about delivering superior service offering and digital capabilities over our world, leading wireless and pure fiber broadband networks.

Darren Entwistle: The significant broadband network investments, we've made are driving extensive socioeconomic benefits for Canadians and communities across the country and we will continue to do so for decades to come.

Darren Entwistle: These investments also enable the continued advancement of our financial and operational performance at TELUS and the long-term sustainability of our industry-leading dividend growth program. Today, we announce a 7% dividend increase, reflecting our unwavering commitment to delivering superior value to our shareholders. This builds on our extraordinarily consistent track record of delivering on our multi-year dividend growth program, first established in 2011 and most recently extended through 2025, targeting annual growth in the range of 7 to 10 percent. Today's increase represents our 26th increase over the past 14 years.

Darren Entwistle: Divestments also enabled the continued advancement of our financial and operational performance at <unk> and the long term sustainability of our industry, leading dividend growth program today.

Darren Entwistle: Today, we announced a 7% dividend increase reflecting our unwavering commitment to delivering superior value to our shareholders.

Darren Entwistle: This builds on our extraordinarily consistent track record of delivering on our multi year dividend growth program first established in 2011, and most recently extended through 2025 targeting annual growth in the range of 7% to 10%.

Darren Entwistle: Today's increase represents our 26 over the past 14 years. It also reflects our unwavering confidence in delivering leading operational and financial results on a chronic basis prospectively.

Darren Entwistle: It also reflects our unwavering confidence in delivering leading operational and financial results on a chronic basis, prospectively. Importantly, our strong outlook includes anticipated and continued free cash flow expansion in the years ahead, driven by ongoing strong EBITDA growth and moderating CapEx intensity. This will further support the long-term sustainability and the quality and growth of our dividend expansion program. Finally, reflecting our team's longstanding belief in the synergistic relationship between doing well in business and doing good in our communities, May marks the official kickoff of our 19th annual Telus Days of Giving. And we're glad that we've created emulators in this regard, giving societal benefits to all.

Darren Entwistle: Importantly, our strong outlook includes anticipated and continued free cash flow expansion in the years ahead, driven by ongoing strong EBITDA growth and moderating capex intensity.

Darren Entwistle: This will further support the long term sustainability and the quality and growth of our dividend expansion program.

Darren Entwistle: Finally, reflecting our team's long standing belief and the synergistic relationship between doing well in business and doing good in our communities may marks the official kickoff of our 19th annual Telus days of giving.

Darren Entwistle: And we're glad that we've created emulators in this regard given the societal benefit for all this year with the support of our extended <unk> family I have every confidence that we will exceed our goal of inspiring 80000 volunteers supporting positive outcomes in communities across the 32 countries in which we now operate.

Darren Entwistle: This year, with the support of our extended Telus family, I have every confidence that we will exceed our goal of inspiring 80,000 volunteers, supporting positive outcomes in communities across the 32 countries in which we now operate as an organization. Indeed, it is thanks to the unparalleled level of caring and commitment that our team members and retirees globally have contributed 2.2 million days of giving since 2000, and this is more than any other company on the planet, and the cultural connection that we have to giving back and what it does for engagement at Telus is the same recipe that underpins the customer service excellence at this organization and the very low churn rates that we consistently deliver again, such as the Alchemy in that regard.

Darren Entwistle: As an organization.

Darren Entwistle: Indeed, this is thanks to the unparalleled level of caring and commitment that our team members and retirees globally have contributed $2 2 million days of giving since 2000 and this is more than any other company on the planet.

Darren Entwistle: And the cultural connection that we have to giving back and what it does for engagement at Telus is the same recipe that underpins the customer service excellence at this organization and the very low churn rate that we consistently deliver again such as the alchemy in that regard.

Darren Entwistle: And on that note, myself, our leadership team, and our board of directors remain consistently and exceedingly grateful for our team's passionate efforts to support our global communities as we strive to deliver outstanding results for all of the stakeholders that we serve.

Darren Entwistle: Self our leadership team and our board of directors remained consistently and exceedingly grateful for our team's passionate efforts to support our global communities as we strive to deliver outstanding results for all of the stakeholders that we serve and on that note I will turn the call over to uncle Doug.

Douglas French: Thank you, Darren, and hello, everyone. In the first quarter, our team navigated a highly competitive environment and challenging global macroeconomic climate to achieve strong operational and financial results. Despite the exogenous headwinds, our results are supported by our longstanding commitment to drive profitable customer growth, product intensity, execution excellence, and our ongoing focus on efficiency and effectiveness.

Speaker Change: Thank you Darren and Hello, everyone.

Douglas French: In the first quarter, our team navigate a highly competitive environment and challenging global macroeconomic climate to achieve strong operational and financial results. Despite the exogenous headwinds. Our results are supported by our long standing commitment to drive profitable customer growth product intensity.

Douglas French: Execution excellence and our ongoing focus for efficiency and effectiveness.

Speaker Change: And mobility continued mobile following and connected device subscriber additions drove higher network revenue by $2, 9%.

Douglas French: Continued mobile phone and connected device subscriber additions drove higher network revenue by 2.9%, partially offset by the high impact of competitive intensity. As we progress through the remainder of 2024, we expect a highly competitive environment could continue to pressurize ARPU in the near term, along with the lapping of some roaming recovery gains in the first half of 2023. Importantly, we continue to focus on AMPU to drive the right economic outcome. This is supported by driving lower costs to serve and leveraging our significant digital and self-serve capabilities, along with critical support from TI.

Douglas French: Partially offset by a high impact of competitive intensity.

Douglas French: Intensity.

Douglas French: As we progress through the remainder of 2024, and we expect a highly competitive environment could continue to pressurize argue in the near term along with the lapping of some roaming recovery experience in the first half of 2023.

Douglas French: Importantly, we continue to focus on <unk> to drive the right economic outcomes.

Douglas French: This is supported by driving lower cost to serve and leveraging our significant digital and self serve capabilities along with critical support from Ti.

Douglas French: Our significant and ongoing focus on cost efficiency will help offset top-line pressures across the business, driving sustainable EBITDA and margin accretion. Fixed data service revenue grew 2.7% year-over-year, driven by strong customer growth across internet, security, and TV, along with increased B2B revenue contribution. This solid growth reinforces our superior product diversity within the home and business, enabled by our world-leading pure fiber network. At the segment level, T-TEC operating revenues were up slightly by 0.4%, while T-TEC adjusted EBITDA increased by 4.1%.

Douglas French: Our significant and ongoing focus on cost efficiency will help offset top line pressures across the business driving sustainable EBITDA.

Douglas French: And margin accretion.

Douglas French: Fixed data service revenue grew two 7% year over year, driven by strong customer growth across Internet security and TV, along with increased <unk> revenue contribution there.

Douglas French: This solid growth reinforces our superior product diversity within the home and business enabled by our world, leading pure fiber network.

Douglas French: At the segment level <unk> operating revenues were up slightly by four zero down 4%, while <unk> adjusted EBITDA increased by four 1% adjusted.

Douglas French: Adjusted EBITDA margin expanded by 160 basis points to over 39%, reflecting a 4% decline in employee benefits expense from our efficiency program. Turning to DLC Act, for more additional and comprehensive details, please listen to the Telus International webcast that occurred earlier today. DLCX had continued impact from the challenging macroeconomic environment that resulted in operating revenues declining by 4.6% year-over-year. The decline was primarily driven by lower revenue from a leading social media client and a reduction in revenue and other industry verticals, notably e-commerce, FinTech, and travel and hospitality.

Douglas French: Adjusted EBITDA margin expanded by 160 basis points to over 39%.

Douglas French: Reflecting a 4% decline in employee benefits expense from our efficiency programs.

Douglas French: And turning to <unk>.

Douglas French: Or more additional and comprehensive details please listen to the Telus International webcast that occurred earlier today <unk>.

Douglas French: <unk> had continued impact from the challenging macroeconomic macroeconomic environment that resulted in operating revenues declining by 6% year over year. The decline was primarily driven by lower revenue from a leading social media client and a reduction in revenue in other industry verticals, notably.

Douglas French: E Commerce, Fintech and travel and hospitality. This was partially offset by growth in services provided by existing customers, including <unk> and Google as well as other new clients added over the past 12 months.

Douglas French: This was partially offset by growth in services provided by existing customers, including Telus and Google, as well as other new clients added over the past 12 months. DLCX adjusted EBITDAE was up 11%, including the earn out adjustment with respect to WillowTree. In addition, the efficiency and effectiveness programs executed on to decline to address operating expenses included a decrease of over 3% in employee benefits.

Douglas French: <unk> adjusted EBITDA was up 11%, including the earn out adjustment with respect to military in addition, the efficiency and effectiveness programs executed on.

Douglas French: And to decline two to address operating expenses included a decrease of over 3% and employee benefits looking for new opportunities with new and existing clients supported by building on our momentum within AI data solutions revenue will continue to improve as the year progresses well.

Douglas French: Looking forward, new opportunities with new and existing clients, supported by building on our momentum within A.I. Data Solutions. Revenue will continue to improve as the year progresses, and TI's ongoing focus on efficiency also puts it in a strong position to manage through some of the macroeconomic pressures as we progress throughout 2024. Overall, Telus consolidated operating revenues decreased by 1.2% year-over-year and adjusted EVTA grew by 4.3%. Consolidated net income was down 38% year-over-year while basic EPS was lower by 40 cents, in part driven by adjusted EBITDA growth being offset by higher restructuring, depreciation, amortization, and financing costs.

Douglas French: <unk> ongoing focus on efficiency also puts them in a strong position to manage through some of the macroeconomic pressures as we progressed throughout 2024.

Douglas French: Overall <unk> consolidated operating revenues decreased by one 2% year over year and adjusted EBITDA grew by $4, 3% <unk>.

Douglas French: Consolidated net income was down 38% year over year, while basic EPS was lower by 40.

Douglas French: In part driven by adjusted EBITDA growth being offset by higher restructuring depreciation amortization and financing costs on an adjusted basis net income and EPS were essentially unchanged year over year free cash flow of $396 million was lower by $139 million.

Douglas French: On an adjusted basis, net income and EPS were essentially unchanged year over year. Free cash flow of $396 million was lower by $139 million, primarily driven by higher cash restructuring disbursements, totaling $225 million in the quarter, of which $185 million was related to the 2023 restructuring that we discussed and disclosed in February.

Douglas French: Merrily, driven by higher cash restructuring disbursements totaling $225 million in the quarter of which $185 million was related to the 2023 restructuring that we had discussed and disclosed in February.

Douglas French: We remain focused on driving towards achieving our financial targets for 2024, which we reiterated today. This includes targeting T-TEC operating growth of 2-4% and T-TEC adjusted EVTA growth of 5.5-7.5%. Consolidated capital expenditures, excluding circa $100 million that is earmarked for real estate development, are still targeted to remain approximately $2.6 billion.

Douglas French: We remain focused on driving towards achieving our financial targets for 2024, which we reiterated today. This includes targeting <unk> operating growth.

Douglas French: Q2 percent to 4% and <unk> adjusted EBITDA growth of five five to seven 5%.

Douglas French: Consolidated capital expenditures, excluding circa $100 million that is earmarked for real estate development are still targeted to remain approximately $2 6 billion lastly.

Douglas French: Lastly, consolidated free cash flow for 2024 is forecasted to be approximately $2.3 billion, driven by higher EBITDA and stable CAPEX. While top line growth was pressured at the beginning of the year, in part due to the aggressive pricing environment, we remain laser focused on profitable customer growth, as evidenced by our recent and differentiated multi-brand pricing suite, and continue to drive demand for our superior bundled offerings over our leading broadband network. Furthermore, we anticipate improvement from TELUS International, particularly in the second half of the year, as well as from TELUS Health and TELUS Agriculture and Consumer Goods.

Douglas French: Lastly, consolidated free cash flow for 2024 is forecasted to be approximately $2 3 billion driven by hybrid higher EBITDA and stable capex.

Douglas French: While top line growth was pressured at the beginning of the year in part to the aggressive pricing environment, we remain laser focused on profitable customer growth as evidenced by our recent and differentiated multi brand pricing sweet and continued to demand.

Douglas French: And continue to drive demand in our superior bundled offerings over our leading broadband networks. Furthermore, we anticipate improvement from Telus International, particularly in the second half of the year as well as telecom and tell us agriculture and consumer goods.

Douglas French: Overall, we remain positive on our ability to continue to generate strong free cash flow for years to come, benefiting from our industry-leading growth profile that consistently showcases our superior asset mix and operational execution. This strong position further supports our industry-leading dividend growth program in place until 2025. Our commitment to deliver on this program is underpinned by our confidence in executing our growth strategy and generating meaningful free cash flow on a sustained basis. This is balanced with maintaining a strong balance sheet and providing us with ample flexibility to support our future growth ambitions, leverage reductions, and capital returns to shareholders. With that, I'll turn it back to Robert.

Douglas French: Overall, we remain positive on our ability to continue to generate strong free cash flow for years to come benefiting from our industry, leading growth profile that consistently showcases our superior asset mix and operational execution.

Douglas French: This strong position further supports our industry, leading dividend growth program in place for 2025.

Douglas French: Our commitment to deliver on this program is underpinned by our confidence in executing our growth strategy and generating meaningful free cash flow on a sustained basis. This.

Douglas French: This is balanced with maintaining a strong balance sheet and providing us ample flexibility to support our future growth ambitions leverage reductions in capital returns to shareholders.

Douglas French: With that I'll turn it back to Robert.

Robert Mitchell: Thanks, Doug. Mihaly, we're ready to proceed with questions, please. Yes, of course. The first question comes from Vince Valentini from TD. Please go ahead, Vince. Thanks very much. Hi, can you hear me? Sorry, the operator was interrupting. Am I OK?

Robert Mitchell: Thanks, Doug we are ready to proceed with questions. Please.

Vince Valentini: So of course first question.

Robert Mitchell: Comes from Vince Valentini from TD.

Vince Valentini: Please go ahead Vince.

Vince Valentini: Thanks very much.

Vince Valentini: Hi can you hear me starting their operator was interrupted.

Vince Valentini: Yes, we can. Go ahead. Um, a couple of things.

Robert Mitchell: Yes, we can go ahead ray.

Vince Valentini: Couple of a couple of things.

Douglas French: 4.1% is obviously a bit below the 5.5% to 7.5%. I think that was planned, Doug, but can you just confirm that you expect EBITDA growth for T-TEC to pick up with passing quarters and you're still confident, not necessarily even at the low end but just somewhere in the guidance range? That is correct, Vince. Perfect.

Vince Valentini: Four 1%.

Douglas French: Obviously, a bit below the five 5% to seven five I think that was planned but can you just confirm that you expect EBITDA growth for <unk> to pick up with passing quarters, and you're still confident not necessarily even at the low end, but just somewhere in the guidance range.

Vince Valentini: That is correct events.

Vince Valentini: Second on that is... your focus on Ampu. I'm sure it's happening, but as you know, we can't really see it visibly. Is it fair to say that the wireless segment EBITDA would have been above that 4.1% total TTEC? We actually don't go to that level on a full allocation. I would say it was directionally in that zone.

Doug: Perfect checking on that is.

Vince Valentini: You're focused on <unk>.

Vince Valentini: And.

Vince Valentini: I'm sure it's happening, but as you know we can't really see it visibly is it fair to say that the wireless segment EBITDA would have been above that four 1% total GTECH.

Vince Valentini: We actually don't go to that level on a full allocation.

Vince Valentini: I'd say it was directionally in that zone. The profitability on <unk> is also very strong with our bundled offerings. So.

Douglas French: The profitability on FFH is also very strong with our bundled offering. So I would say it's directionally where you're highlighting it, but we don't go to that level. So I can't. Okay, and one last one.

Douglas French: I would say it's.

Douglas French: Directionally, where youre, highlighting but we don't go to that level, So I can't confirm it.

Douglas French: Hey.

Speaker Change: And one last one on your free cash flow.

Douglas French: Accusation.

Douglas French: Table, where you break everything down nicely.

Vince Valentini: On your free cash flow calculation table, where you break everything down nice and clean, there's the effective lease principle for $178 million this quarter. I'm just, can you confirm that comes out of your free cash flow for guidance purposes and when you're doing a dividend pair ratio? And I'm just wondering why, like, what are those?

Douglas French: The effective lease principle for $178 million this quarter.

Vince Valentini: Im just can you confirm that that comes out of your free cash flow for guidance purposes, and when Youre doing a dividend payout ratio and I'm. Just wondering why like what are those can you give us. Some examples of those real cost of the business as opposed to just some sort of fabricated financing charge.

Douglas French: Can you give us some examples of those real costs of the business as opposed to just some sort of fabricated financing charge? Yeah, we when the accounting changed and you put leasing on your books, we were the only ones that went full in that if it was an operating lease before, and it's now a lease on your books, we would still charge it through free cash flow where others haven't. So it is a clean view of the previous accounting. And it would be anything from building leases to equipment leases to any of those environments.

Vince Valentini: Yes.

Vince Valentini: When when the accounting change and you put leasing on your box we were the only ones that fall in that if it was a operating lease before and it's now a lease on your books that we would still <unk> charges through free cash flow, where others haven't.

Douglas French: So it is a clean view to the previous accounting and it would be anything from building leases to equipment leases too.

Douglas French: Any of those environments. So it's all 100%.

Jerome Dubreuil: So it's all 100% supporting our business across the board. And it is in alignment with the accounting principles that were established with IFRS 16 a few years ago. And yes, they are completely legit, and they are completely on board with supporting our business. Thanks. Thanks, Vince. Next question, please, Maher. Of course, the next question comes from Jerome Dubreuil from Desjardins. Please go ahead. Please go ahead, Jerome

Jerome Dubreuil: Supporting our business across the board and it is alignment with the accounting principles that were established with Bioprocess 16, a few years ago and yes. They are completely.

Jerome Dubreuil: And they are completely onboard to supporting our business.

Jerome Dubreuil: Thanks Scott.

Jerome Dubreuil: Vince next question please.

Jerome Dubreuil: Of course next question comes from.

Jerome Dubreuil: Zebra from dues Zhang Please go ahead.

Jerome Dubreuil: Please go ahead, thanks gentlemen.

Douglas French: Yeah, thanks for taking the questions. I've been talking about lower CapEx objectives during the conference season lately. Maybe in the context of the dividend increase, if we could maybe just provide some more color on potentially reaching 10% CapEx intensity down the road and maybe a timeline for that objective. Yeah, so we've been holding our capex flat with the opportunity to continue to bring it down. You've seen our growth trajectory, and we're going to be 12 or lower, even in the current year.

Jerome Dubreuil: Yes, thanks for taking the questions.

Douglas French: <unk> been talking about lower Capex.

Douglas French: Objective during the conference season lately maybe.

Douglas French: Maybe in the context of the dividend increase if you could maybe just provide some more color on potentially reaching.

Douglas French: 10% Capex intensity down the road and maybe a timeline for that objectives.

Douglas French: <unk>.

Speaker Change: Yes so.

Douglas French: We've been holding our capex flat with the opportunity to continue to bring it down you've seen our growth trajectory and we're going to be.

Douglas French: <unk> or lower even in the current year and so as we assess our capital needs into the future. We're going to have continued growth and we do not see growth in our capital number if anything we can continue to bring it down as we've discussed so that is how we will get to Ken.

Douglas French: And so as we assess our capital needs into the future, we're going to have continued growth, and we do not see growth in our capital numbers. If anything, we can continue to bring them down, as we've discussed. So that is how we will get to 10, or, circa 10, let's say. But that is still significantly lower than others in the industry.

Douglas French: There are circa 10, let's say, but that is still significantly lower than others in the industry.

Douglas French: And, you know, it's the result of all the investments we made in our fiber network way earlier than all of our peers. And the fact that we're bringing that to conclusion ahead of our peers at rates that were the lowest in history, at labor rates that were the lowest in history, is an advantage that we have that our peers don't. And I think that's why you're going to see it through that capital intensity level, complemented by an improving revenue profile. Yes, thanks. Second, for me, if...

Douglas French: The result of all of the investments we made in our fiber.

Douglas French: Way earlier than all of our peers and the fact that we are bringing that to conclusion.

Douglas French: Ahead of our peers at rates that were the lowest in history at labor rates that were lowest in history is an advantage that we have that our peers don't and I think thats why youre going to see it through that capital intensity level.

Douglas French: Complemented by an improving revenue profile right.

Speaker Change: Yes, Thanks second for me.

Zainul Mawji: If you can provide more color on the rationale for giving 5G on the public mobile brand. I totally understand the Ampu strategy, but just looking forward to that, it seems like this marks a clear sign that this is difficult to monetize. Zainul, go ahead.

Speaker Change: If you can provide more color on the rational.

Zainul Mawji: For for giving five G on the public mobile brand.

Zainul Mawji: I get totally the <unk> strategy, but just looking for that it seems like this.

Zainul Mawji: <unk> is a clear sign that this is difficult to monetize.

Zainul Mawji: Then I'll go ahead sure. So I think there's a couple of things. So there are bifurcated offers on public mobile for both <unk> and <unk>.

Zainul Mawji: Sure. So I think there are a couple things. So there are bifurcated offers on public mobile for both 4G and 5G, depending on the profile of the customer. But I think fundamentally, it is a digital-first and subscription-on-demand brand, and that shouldn't prevent it from offering services on the best network that we have. And secondly, I think the key here is that it's a completely eSIM, digital-only, no contact, no store, no device opportunity. And that digital-first entity does resonate with the population of the market that is looking for 5G service in a bring-your-own-device market.

Zainul Mawji: Depending on the profile of the customer.

Zainul Mawji: I think fundamentally it is a digital first and subscription on demand brand.

Zainul Mawji: That shouldn't prevail prevented from offering our services on the best network that we have and secondly.

Zainul Mawji: The key here is that it.

Zainul Mawji: A completely.

Zainul Mawji: Digital only no contact no store no device.

Zainul Mawji: <unk> opportunity and that digital first entity does resonate with a population of the market that is looking for <unk>.

Zainul Mawji: In our bring your own device market. So we're playing in that market. Accordingly, we're being very clear about differentiating our bundled with respect to premium as Darren mentioned, we have launched new premium capabilities in the market now really pushing the value of our premium loading as.

Zainul Mawji: So we're playing in that market accordingly. We're being very clear about differentiating our bundles with respect to premium. As Darren mentioned, we have launched new premium capabilities in the market and are really pushing the value of our premium loading, as well as the fact that we are looking at the KUDO brand and working through different bundling options for our customers in that value segment as well. So that's our story. Yep, that's helpful. Thank you. Thanks, Jerome. Next question, please, may I ask it? Yes, the next question comes from Drew McReynolds from RBC. Please go ahead, Joe.

Zainul Mawji: Well as the fact that we are looking at the Kudo brand and Tom and working through different bundling options for our customers in that value segment as well.

Zainul Mawji: That's our rationale.

Drew McReynolds: Yeah. That's helpful. Thank you.

Drew McReynolds: Thanks, Rob next question please.

Zainul Mawji: Yes.

Drew McReynolds: Question comes from drew Mcreynolds from RBC.

Drew McReynolds: Go ahead Joe.

Drew McReynolds: Thank you. Yeah, thanks very much. So, two for me.

Drew McReynolds: Yes, thanks very much.

Drew McReynolds: So two for me.

Drew McReynolds: Like obviously on the wireless ARPU side, I think a bunch of us are increasingly thinking it's an irrelevant metric. Like we continue to see denominator tweaks over the years, and I think yours actually worked against you this quarter, if I'm reading that footnote right in your deck.

Drew McReynolds: Well I think obviously on the wireless <unk> side, I think a bunch of us are increasingly thinking it's an irrelevant metric like we continue to see denominator tweaks over the years and I think yours actually worked against you. This quarter, if I'm reading that footnote right in your in your deck and any of that.

Speaker Change: I think I know the answer but would love to hear you.

Drew McReynolds: Your view on the relevance of wireless <unk> API and why we're just not focused on network revenue growth instead, and then second just with respect to the leverage target maybe for you.

Drew McReynolds: Doug we saw BCE raise its target to three times.

Drew McReynolds: Honestly I don't need to comment on that but just with reference to your two two to two seven times leverage target just what are the puts and takes issue.

Drew McReynolds: You either doing the same or maintaining that over time. Thank you.

Speaker Change: One of you kick it off and then Doug you can you can provide some commentary and then you can move on to leverage.

Drew McReynolds: In any event, I think I know the answer but would love to hear your view on the relevance of wireless ARPUs and KPIs and why we're just not focused on network revenue growth instead. And then, second, just with respect to the leverage target, maybe for you, Doug, we saw BCE raise its target to three times. Obviously, no need to comment on that.

Speaker Change: Thanks for the question drew.

Drew McReynolds: I think the key thing that you're really zoning in on and highlighting is the degree to which our <unk> metric is a driver of how we are.

Speaker Change: We're managing the business and of course, we are always focused on the profitability and the segmentation of our customer base and the right pricing dynamic, but I think more so what youre going to see out of US is that we're focused on household <unk>.

Drew McReynolds: <unk>, our mobile in home business and customer lifetime value. So the key elements that are going to reflect within that metric our product intensity, our churn value the level of wallet share that we are able to clean and gain traction in our customer base and more still what you want what we want to achieve is we want to.

Drew McReynolds: Sure that areas that customers are already spending money, whether it's streaming services or you'll see that we're coming out with new home automation capabilities that save our customers money on their energy Bill those are the kinds of things that we're going to drive in the market from a differentiation perspective and will lead more to the indicator.

Drew McReynolds: Of household <unk> in terms of improving our cost to serve over a broader revenue base and customer lifetime value in terms of driving better retention outcomes across a broader revenue break data as well. So that's a more relevant metric for us in terms of how we want to manage the business.

Drew McReynolds: And does confirm and you are correct because we applied the adjustment retroactively. So you could have clean comparisons it actually was negative to us on our ARPA growth in the quarter.

Drew McReynolds: And treated prospectively it would have been completely different story, so trying to be transparent to the street on the retroactive impact on that front on.

Zainul Mawji: But just with reference to your 2.2 to 2.7 times leverage target, just what are the pros and cons of you either doing the same or maintaining that over time? And why don't you kick it off, and then you can provide commentary, and then you can move on to leverage, okay? Thank you. Thanks for the question, Drew. I think the key thing that you're really zoning in on and highlighting is the degree to which ARPU as a metric is a driver of how we're managing the business.

Drew McReynolds: On the leverage side.

Zainul Mawji: And, of course, we are always focused on profitability and the segmentation of our customer base and the right pricing dynamic. But I think more so what you're going to see from us is that we're focused on household AMPU across our mobile and home business and customer lifetime value. So, you know, the key elements that are going to reflect within that metric are product intensity, our churn value, and the level of wallet share that we are able to glean and gain traction on in our customer base.

Zainul Mawji: And more so, what we want to achieve is to ensure that areas that customers are already spending money on, whether it's streaming services, or you'll see that we're coming out with new home automation capabilities that save our customers money on their energy bill. Those are the kinds of things that we're going to drive in the market from a differentiation perspective and will lead more to the indicator of household AMPU in terms of improving our cost to serve over a broader revenue base and customer lifetime value in terms of driving better retention outcomes across a broader revenue base as well.

Speaker Change: We definitely are our managing different optimal cost of capital.

Zainul Mawji: That optimal cost of capital.

Zainul Mawji: So that's a more relevant metric for us in terms of how we want to manage the business. And just confirming, you are correct. Because we applied the adjustment retroactively, so you could have clean comparisons, it actually was negative for us on our ARPU growth in the quarter. And if you treated it prospectively, it would have been a completely different story.

Zainul Mawji: Look back and where we are today.

Zainul Mawji: <unk> has been allowed us to be a little bit higher but delevering is obviously and our objective is to get down to that three or below three.

Zainul Mawji: So trying to be transparent to the street on the retroactive impact of that front. On the leverage side... We definitely are managing to an optimal cost of capital, and that optimal cost of capital, if you look back at where we are today, has allowed us to be a little bit higher, but delevering is obviously in our objectives to get down to that three or below three. We've taken the position we will not change our, it's not even guidance, but our benchmark on what we want to be in for leverage until we are closer to that metric because we want to make sure we earn the right to do that. Do I think that range of anywhere around the three to below three is the right zone?

Zainul Mawji: We've taken the position we will not change our.

Zainul Mawji: And that's not even guidance but are.

Zainul Mawji: Benchmark on what we want to be in for leverage until we are closer to that metric because we want to make sure we earn the right to do that so.

Zainul Mawji: Do I think that range of anywhere around the 3% below three is the right zone, yes.

Douglas French: Yes. But is that probably where the optimal long-term cost of capital is? Yes, and we'll reassess it when we get closer to it, but our goal right now is to ensure we invest appropriately and continue to have a strong balance sheet. Just as a quick highlight, even the spectrum purchases we've done in the past 12 months add 44 basis points to our number, so we'd be in the low threes without the high cost of spectrum as being one of the key drivers. Thank you. Thanks, Drew.

Zainul Mawji: What are the optimal long term cost of capital is.

Douglas French: Yes, and we'll reassess that when we get closer to it.

Douglas French: But our goal right now is to ensure we invest appropriately.

Douglas French: <unk> continued to have a strong balance sheet.

Douglas French: Just as a quick highlight is while even the spectrum purchases we've done in the past 12 months at 44 basis points of our numbers so we'd be in the low threes.

Douglas French: High cost of spectrum.

Douglas French: As being one of the key drivers.

Speaker Change: Thank you.

Speaker Change: Thanks Drew next question please.

Drew McReynolds: Next question, please. The next question comes from Maher Yaghi from Scotiabank. Please go ahead. Thank you for taking my question. Can you hear me?

Douglas French: Next question comes from Maher Yaghi from Scotiabank.

Maher Yaghi: Please go ahead.

Maher Yaghi: Thank you for taking my questions can you hear me.

Maher Yaghi: Yes, we can. Okay, great. Thank you. I wanted to touch base on your fixed data services revenue growth rate last year. Data Services was growing at 7%, and now that growth is running around 3%. You indicated in the MD&A that ARPU for internet customers is now flat year on year versus growing last year. Can you dissect for us the forces at play here and what is causing your internet ARPU to come under pressure? More importantly, I wonder if you can give us your view on where?

Maher Yaghi: Yes, we can.

Maher Yaghi: Okay, great. Thank you I wanted to touch based on touch on your fixed data services revenue growth rate.

Maher Yaghi: Last year.

Maher Yaghi: Set of services was growing at 7% and now that growth is running at around 3% you indicated in the MD&A.

Maher Yaghi: That.

Maher Yaghi: RFP report Internet customers is now flat year on year versus growing last year.

Maher Yaghi: Can you dissect for us the forces at play here and what is causing your internet.

Maher Yaghi: Come under pressure more importantly.

Maher Yaghi: I wanted if you can give us your view on where.

Zainul Mawji: That line item, growth rate, is heading. And achieving your revenue guidance for the year depends on seeing that growth rate re-accelerating in the back half of the year. Thank you. Zainul, why don't you take that?

Maher Yaghi: That line item growth rate is heading to and achieving and achieving your revenue guidance for the year depends on seeing that growth rate accelerating in the back half of the year. Thank you.

Zainul Mawji: So I don't want to take that.

Zainul Mawji: So I think the answer to that is very simple and clear. There is competitive pressure in the market, and we've talked about that before. You know, I think fundamentally you've seen that we've been able to grow based on, you know, the volume of our growth. You've seen that come through in the overall fixed data revenue. The ARPU, similar to wireless, is under significant pressure.

Zainul Mawji: So I think the answer to that is very simple and clear there is competitive pressure in the market and we've talked about that before.

Zainul Mawji: I think fundamentally you've seen that we've been able to grow based on the.

Zainul Mawji: The volume of our growth you've seen that come through in the overall 16 of revenue the <unk> similar to wireless is under significant pressure.

Zainul Mawji: We are seeing customers step up continue to step up to higher broadband speeds.

Zainul Mawji: We are seeing customers step up, continue to step up to higher broadband speeds, and we are seeing customers continue to value our fiber capabilities. And what's really important there as well is that our pure fiber churn on high speed is well under.9.

Zainul Mawji: And we are seeing customers continue to value our fiber capabilities and what's really important there as well is that our care fiber churn on high speed is well under dot nine cell where it.

Zainul Mawji: Continuing to see rising into the market with our offering but at the lower end of the market and for the customers that are willing to make that switch there is.

Zainul Mawji: So, you know, we're continuing to see resonance in the market with our offering. But at the lower end of the market, and for the customers that are willing to make the switch, there is, you know, an ARPU pressure. I think the way that, you know, we think about that goes back to my answer on household ARPU.

Zainul Mawji: Pressure.

Zainul Mawji: Thank the way that we think about that goes back to my answer on how full the Andrew we're focused on product intensity continued revenue drivers and our significant focus on cost to serve which you've seen come through in our restructuring efforts as well as our digitization.

Zainul Mawji: Efforts leveraging ti both for our product development as well as for our Digitization and cost to serve improvement and customer experience improvement. So we have significant upside from a profitability perspective in that regard.

Zainul Mawji: We're focused on product intensity, continued revenue drivers, and a significant focus on cost to serve, which you've seen come through in our restructuring efforts, as well as our digitization efforts, leveraging TI, both for our product development, as well as for our digitization and cost to serve improvement and customer experience improvement. So we have significant upside from a profitability perspective in that regard. And what's your view on... We're not going to give a view on the line item, expected growth rate, in terms of forward-looking guidance, but to maybe answer your question in a different way, our confirmation of our guidance range and what we're going to do is not contingent upon resurrecting that fixed data line growth back to 2023 levels.

Zainul Mawji: Okay.

Zainul Mawji: What's your view on the expected growth rate for that line item.

Zainul Mawji: We're not going to give a view on the line item expected growth rate in terms of forward looking guidance, but.

Zainul Mawji: To to maybe answer your question in a different way.

Zainul Mawji: Our confirmation of our guidance range and what we're going to do is not contingent upon resurrecting that fixed data line grow back to the 2023 levels that would be nice and we would welcome. It if supported by the competitive dynamics, but we think that.

Zainul Mawji: That would be nice and we would welcome it if supported by the competitive dynamic, but we think that we have sufficient opportunities on the ARPH front. We have sufficient opportunities on the bundling and volume extension front, and we have sufficient opportunities on new product development to support getting into our established guidance range. Great, thank you very much.

Zainul Mawji: We have sufficient opportunities.

Zainul Mawji: On the.

Zainul Mawji: Ph upfront, we have sufficient opportunities on the bundling and volume extension front, and we have sufficient opportunities on new product development.

Zainul Mawji: To support getting into our established guidance range.

Speaker Change: Great. Thank you very much.

Maher Yaghi: Thanks, Mayor. May I have the next question, please? All right, the next question comes from David Barden from Bank of America. Please go ahead, David. All right, thanks for taking the question. It's Matt sitting in for Dave.

Speaker Change: Thanks Meyer.

Speaker Change: Your question please.

Maher Yaghi: Alright next question comes from David Barden.

David William Barden: From Bank of America.

David William Barden: Please go ahead David.

Maher Yaghi: Alright, Thanks for taking the question, it's Matt sitting in for Dave.

David William Barden: I guess first I wanted to, if I could, just please revisit the, um, the, uh, The margin expansion within TTAC, I heard you guys obviously say driven by the efficiency program. I was wondering if you could maybe give some color around how much of the, if there should be more efficiency gains from that program that are coming in subsequent quarters. Should we be thinking that the 160 basis point range is something that could be sustained or grow? Just some commentary around there.

Matt: I guess first I wanted to if I could just please revisit the.

David William Barden: The.

David William Barden: Can you kind of margin expansion within <unk>.

David William Barden: I heard you guys obviously.

David William Barden: Driven by the efficiency program I was wondering if you could maybe give some color around how much of the if there should be more efficiency gains from that program that are coming in subsequent quarters.

David William Barden: Should we be thinking that that.

David William Barden: 160 basis point range, it's something that can be sustained or grow just some commentary around there and then maybe secondarily.

Douglas French: Zainul, I heard you kind of highlight the importance of sort of that you know what the in-house measures of product intensity and churn, I think primarily on some of the wireline products and cost to serve. And I think you gave a broad range of what churn is for the internet, if I'm not mistaken, for the quarter. You know, is there any thought to providing on a more regular basis some of these measures, which are obviously internally important? Providing them externally, to the extent that you feel comfortable.

David William Barden: Zeno I heard twice in responses to answers kind of highlighting the importance.

Douglas French: Kurt.

Douglas French: <unk> measures its product intensity in churn I think primarily on some of the wireline products and cost to serve.

Douglas French: And I think you gave.

Douglas French: <unk> range on what churn is for Internet, if I'm not mistaken for the quarter.

Douglas French: Is there any thought to providing on a rate more regular basis. Some of these measures, which are obviously internally importance.

Douglas French: Providing an externally to the extent that you feel comfortable and then maybe finally.

Zainul Mawji: And then maybe, you know, finally, just on the broadband net ads, I know that there are, obviously, they're still fairly robust, even by historic trends. But I was wondering, I know there is some, you know, kind of, Wholesale, that's included in there, Out of Territory, kind of internet and ads. I was wondering if you could provide any color on what that split might be, if it's material, if it's growing, any type of quality.

Zainul Mawji: Just on the broadband net adds I know that there is.

Zainul Mawji: Obviously, there is still fairly robust.

Zainul Mawji: Even like by historic.

Zainul Mawji: Trends.

Zainul Mawji: Just wondering I know there is some.

Zainul Mawji: Kind of wholesale that's included in there.

Zainul Mawji: Territory kind of Internet ads I was wondering if you could provide any color on.

Zainul Mawji: What that split might be that material.

Zainul Mawji: And typically would be helpful. Thanks.

Zainul Mawji: Okay.

Douglas French: Okay. I'll hand it over to Doug to talk about the margin expansion. It's $170 billion. Fifth, Matt, not 160.

Zainul Mawji: I'll hand, it over to Doug to talk about the margin expansion that is 170.

Douglas French: And the answer simply to your question about whether it was finished and we're just seeing the impact of last year or whether it's still ongoing. It is indeed still ongoing as it relates to our major cost efficiency program. Insofar as staff level reductions are concerned, that won't be complete until the end of July.

Douglas French: Fifth, Matt and up 160 and the answer.

Douglas French: Simply to your question about weather.

Douglas French: It was finished and we're just seeing the impact of last year or whether it's still ongoing.

Douglas French: It is indeed still ongoing as it relates to our major cost efficiency program and so far as staff level reductions are concerned.

Douglas French: It won't be complete until the until the end of July so theres more to come on the efficiency upfront.

Douglas French: So there's more to come on the efficiency front to support what we're delivering in terms of EBITDA growth and margin expansion, but Doug can provide some additional color and then Zainul can follow up and answer the second part of your question or the second and third part of your question. Yeah, so you would have seen in our disclosure that we actually had a 4% reduction in our employee benefits costs, but that equates to over $50 million in the quarter on its own, which is not complete yet.

Douglas French: To support what we're delivering in terms of EBITDA growth and margin expansion, but.

Douglas French: Doug can provide some additional color then.

Speaker Change: <unk> a follow up then.

Doug: So the second part of your question or second two parts of your question.

Doug: Yes, So you would have seen in our disclosure that we actually had.

Doug: 4% reduction in our employee benefits cost.

Doug: Would equate to over $50 million in the quarter on its own.

Doug: Which is not complete yet and there will still be more as we complete their finished the program and continue to drive Digitization and efficiencies as the year goes on we're also well through the health savings that we've talked to.

Douglas French: There will still be more as we complete or finish the program and continue to drive digitization and efficiencies as the year goes on. We're also well through the health savings that we've talked about and hitting our health targets, as Darren highlighted in his previous remarks. And so the combination of the two absolutely gets us on a trajectory that will be sustainable and will grow as the year goes on. We will start to lap up a little bit of those savings as we get in the back end of the year, but the margin expansion will hold. Okay, thanks for that.

Douglas French: And hitting our health target as Darren highlighted in his.

Douglas French: Previous remarks, and so the combination of the two absolutely gets us on a trajectory that that will be sustainable and we will grow as the year goes we will start to lap a little bit of the.

Douglas French: Those savings as you get in the back end of the year, but the margin expansion will hold.

Zainul Mawji: I think both your question and Drew's lead us to kind of want to take away and think about, you know, some better leading indicators with respect to whether it's product intensity, revenue growth, you know, customer lifetime value on a prospective basis. So we'll think about that in terms of what we should take away. You know, when you know, on an ad hoc basis, one of the things I can highlight as an example is that our product intensity is now 3.21 on a pure fiber household basis.

Douglas French: Okay. Thanks for that I think both your question and <unk> lead us to kind of want to take away and think about.

Zainul Mawji: Some better leading indicators with respect to.

Zainul Mawji: Whether it's product intensity revenue growth customer lifetime value on a prospective basis, we'll think about that in terms of what we should take away.

Zainul Mawji: On an AD hoc basis, one of the things I can.

Zainul Mawji: Highlights as an example is that our.

Zainul Mawji: Product intensity is now $3 two one on a pure fiber household basis.

Zainul Mawji: And that has grown significantly, and it will continue to grow, not just on the back of the existing products that we have but the new products that we're going to be introducing as well. In terms of your question on the split of the internet, I would say that, relative to the TPIA side of the business, it's fairly modest and continues to be modest. We continue to see and drive growth on the back of our existing pure fiber footprint, which does see some, you know, incremental household releases and newcomer growth as well as new household introduction growth as well.

Zainul Mawji: And that has grown significantly and it will continue to grow not just on the back of the existing products that we have but the new products that we're going to be introducing as well.

Zainul Mawji: Of your question on the split of Internet I would say that relative to the epi side of the business.

Zainul Mawji: It's fairly modest continues to be modest.

Zainul Mawji: We continue to see and drive growth on the back of our existing fiber footprint, which does see some.

Zainul Mawji: Incremental household releases and newcomer as well as new household.

Zainul Mawji: Introduction growth as well.

Zainul Mawji: And you know, I think the most critical element to give you some insight into how we're going to be managing that part of the business. We certainly feel that, you know, you need to have a high product intensity and a bundled capability to be successful in a lease network environment. And we are operating under the axiom that, on an overall basis, the return on investment for any bundled household, whether it is, you know, on a lease network, has to be equal to or better than what we would achieve in terms of our own build.

Zainul Mawji: And I think the most critical element to give you some insight into how we're going to be managing that part of the business. We certainly feel that you need.

Zainul Mawji: Need to have a high product intensity, a bundled capability to be successful.

Zainul Mawji: In our lease network environment, and we are operating under the axiom that on an overall basis. The return on investment for any bundled household whether it is.

Zainul Mawji: On a lease network has to be equal to or better what we would achieve.

Zainul Mawji: In terms of our own bills and that has delivered on the back again product intensity of looking at both mobile and home leveraging our differentiated brand so that you're leveraging the premium aspects of your brand.

Zainul Mawji: And that's delivered on the back of product intensity, of looking at both mobile and home, of leveraging our differentiated brands so that, you know, you're leveraging the premium aspects of your brand and on the back of cost to serve and churn improvements as well. But that's the way we're looking at making sure that we're focused on economic value loading and not hollow loading. Thank you so much for the call.

Zainul Mawji: And on the back of cost to serve and churn improvements as well, but thats. The way were looking at making sure that we are focused on we're focused on economic value loading and not follow loading.

Speaker Change: Great. Thank you so much for the color.

Matt: Thanks, Matt. Next question, please. Right. The next question comes from Stephanie Price from CIBC. Please go ahead.

Speaker Change: Thanks, Matt next question please.

Matt: Next question comes from Stephanie price from CIBC. Please go ahead Stephanie.

Matt: Okay.

Stephanie Doris Price: Hi, the prepared remarks mentioned a few times increases in competition for defense device financing. I'm just curious about what you're seeing in the market and how you think about competing in that type of environment. Doug, So what we've seen on that end is a lot of our offerings on device financing; we've kept the floor and made sure we had economics, strong economics, where there are times on the competitive side where that hasn't helped.

Stephanie Doris Price: Hi, the prepared remarks mentioned a few times increases in competition on defense device financing.

Doug: So what youre seeing in the market and how you think about competing in that type of environment.

Stephanie Doris Price: Doug.

Stephanie Doris Price: And, and the device financing floors have come down, which would then open up lower customers to, you know, a high subsidy and or long-term financing costs. So, I said that intensity is really what we've seen throughout, and February was probably as intense as Black Friday was. And that's where you've seen that, or even more intense. And that's what the reference was.

Stephanie Doris Price: So.

Doug: What we've seen on that end as are a lot of our offerings on on device financing, we kept the floor and made sure of how the economics strong economics.

Speaker Change: There are.

Stephanie Doris Price: Our times through the competitive side, where that Hasnt held in.

Stephanie Doris Price: The device financing floors have come down.

Stephanie Doris Price: Would then open up lower our customers too.

Stephanie Doris Price: <unk> subsidy and or a long term financing costs. So.

Stephanie Doris Price: I said that intensity is really what we've seen throughout in February.

Stephanie Doris Price: Was probably is as intense as black Friday was in.

Stephanie Doris Price: That's where you've seen that or even more intense.

Stephanie Doris Price: And that's what the reference was and it's primarily lowering the floor, so that youre, giving more subsidy to lower <unk> customers.

Stephanie Doris Price: Which becomes very dilutive the lower yugo.

Douglas French: And it's primarily lowering the floor so that you're giving more subsidy to lower ARPU customers, which becomes very dilutive the lower you go. Zainul, do you want to add some color in terms of what we're doing in terms of brand segmentation and premium? Absolutely, absolutely. So Stephanie, I think Doug covered the highlights, but it's really important to kind of zone in on the two or three levers that impact dilution the most.

Stephanie Doris Price: I know you want to add some color in terms of enjoying umbrella segmentation absolutely premium absolutely I think Doug covered the highlights but.

Zainul Mawji: It's really important to kind of zone in on that the two or three leavers that impact dilution the most.

Zainul Mawji: So one of them is the amount of subsidy. The second one is the rate at which you offer that subsidy on a device because that has a significant flow-through impact from your base to step down when it's an attractive market for devices. And then the third piece is the bring it back value.

Zainul Mawji: So one of them is the amount of subsidy. The second one is the rate at which you offer that subsidy on a device because that has a significant flow through impact from your base to step down when it's an attractive market for devices and then the third piece actually.

Zainul Mawji: And one of the things we've seen relatively stable in the market up until Q1 was the bring it back value, but we saw that increase in competitiveness towards the back end of Q1 as well. So what we're really focused on is really differentiating our brands so that we are creating a higher value step up on the device financing floor and reducing the level of potential re-rate for our customers. And so when the promotional intensity creeps up, you're not seeing that re-rate materialize when customers see promotions for devices. And then on the flanker side, that's where you have to look at most of the volume being on bring your own device.

Zainul Mawji: Is to bring it back value and one of the things we've seen relatively stable in the market up until Q1 was to bring it back value, but we saw that increase in competitiveness towards the backend of Q1 as well so what we're really focused on is.

Zainul Mawji: Really differentiating our brands so that we are creating a higher value step up on the device financing floor.

Zainul Mawji: Reducing the level of potential re rate for our customers and so when that promotional intensity creeps up.

Zainul Mawji: Youre not youre, not seeing that that re rate materialized when customers see.

Zainul Mawji: Promotions for our devices and then on the flanker side, that's where you have to look at most of the volume being on bring your own device, but what's important there is to really think about the write bundles like our kudo happy stock, which offer streaming and internet and and.

Zainul Mawji: But what's important there is to really think about the right bundles, like our KUDO Happy Stack, which offers streaming and internet and a lower data plan on mobility as a really attractive bundle so that you can curtail some of the switching behavior that would be dominant in that part of the market. So that's how we're kind of trying to ensure we differentiate our brands. Thanks for the color.

Zainul Mawji: A lower <unk>.

Zainul Mawji: Data plan on mobility as a as a really attractive bundle. So that you can you can curtail some of the switching behavior that would be dominant in that part of the market. So that's how we're kind of trying to ensure we differentiate our brand.

Stephanie Doris Price: And one other one for me just on Telus Health, it looks like revenue was down a bit year over year. Just curious about the revenue drivers in the quarter, and how we should think about Crossel at this point from Telus Health. Naveen, do you want to speak to that one, please?

Speaker Change: Thanks for the color and one other one from me just on Telus health. It looks like revenue was down a bit year over year, just curious about the revenue drivers in the quarter and how we should think about that cross sell at this point from telecom.

Naveen: <unk> do you want to speak to that one please.

Navin Arora: Yeah, absolutely, Darren. So you're absolutely right, Stephanie, we were unhappy with where our revenue growth landed in Q1. But, you know, our focus on channel expansion, distribution, and customer experience excellence investments is notably starting to pay off. So just to give you an example, year to date, we've driven strong performance, delivering about 111% of our sales bookings across our health lines of business. And that represents a 17% year over year increase in the volume of deals and $175 million in total contract value.

Naveen: Yes, absolutely Dan.

Naveen: So youre absolutely right, Stephanie we were unhappy with where our revenue growth landed in Q1.

Navin Arora: But our focus on channel expansion distribution and customer experience excellent excellence investments as it's.

Navin Arora: Notably starting to pay off.

Navin Arora: So just to give you. An example year to date, we've driven a strong performance delivering.

Navin Arora: About 111% target on our sales bookings.

Navin Arora: Across our health lines of business and that represents a 17% year over year increase in volume of deals and $175 million in total contract value and then as another example of the momentum we are building our <unk> business unit habits.

Navin Arora: And then, you know, as another example of the momentum we're building, our payvider business unit had its best sales quarter on record. So we're going to, you know, we're going to still continue to see some macroeconomic headwinds. But, you know, through our aggressive focus on growth and synergies, we actually expect a very steady improvement in revenue growth and profitability in the coming quarters. And, you know, with the big parts of our integration of Lifeworks behind us, we actually see a pretty great growth opportunity ahead of us working as one team, you know, one unified culture, one unified set of priorities, and, you know, really driving some increased sales performance that's going to drive that revenue growth.

Navin Arora: Best sales quarter on record so we're going to we're going to still continue to see some macroeconomic headwinds but.

Navin Arora: Through our aggressive focus on growth and synergies, we actually expect very steady improvement in revenue growth and profitability in the coming quarters and with the with the.

Navin Arora: Big parts of our.

Navin Arora: Integration of life works behind Us.

Navin Arora: We actually see a pretty great growth opportunity ahead of us working as one team one unified culture, one unified set of priorities and.

Navin Arora: Really driving some increased sales performance, that's going to drive that revenue growth. So we're actually expecting.

Navin Arora: So we're actually expecting strong revenue growth coming in Q2 and beyond, and tied to that, we're actually seeing some very good, www.telus.co.uk. And then the last thing I would say is we have a tremendous cross-sell opportunity across Telus Health and the rest of our B2B telecom and other assets, and those opportunities are already starting to bear fruit for us.

Navin Arora: Strong revenue growth coming in.

Navin Arora: Q2 and beyond.

Navin Arora: And tied to that we're actually seeing some very good.

Navin Arora: Success, working with Telus International in terms of not only driving cost savings, but really driving.

Navin Arora: <unk> and automation capabilities and those capabilities are not only help us on the cost side, but they're also going to help create.

Navin Arora: Differentiation in our capabilities, which again is going to allow us to drive greater greater revenue opportunities and then the last thing I would say is we.

Navin Arora: We have.

Navin Arora: Tremendous cross sell opportunity across Telus health in the rest of our <unk> telecom and other assets and those opportunities are already starting to bear fruit for us and I see that as a very important developing story, that's going to give us a competitive advantage going forward and really elevate.

Navin Arora: And, you know, I see that as a very important developing story that's going to give us a competitive advantage going forward and really elevates the conversation with our customers at a strategic level. And, you know, that's going to become more and more part of our growth as we go forward. Would that lock you there?

Navin Arora: The conversation with our customers at a strategic level and.

Navin Arora: <unk>.

Navin Arora: That's going to become more and more.

Navin Arora: Part of our growth as we go forward.

Navin Arora: With that back to here.

Zainul Mawji: Yeah. Thanks, Stephanie. Mihai, we have time for two more questions.

Speaker Change: Thanks, Stephanie.

Speaker Change: We have time for two more questions.

Operator: Yes, of course. The next question comes from Sebastian Pitti from JP Morgan. Please go ahead.

Mihai: Yes of course next question comes from Sebastian <unk> from JP Morgan.

Sebastiano Carmine Petti: Please go ahead.

Sebastiano Carmine Petti: Hi, thank you for taking the question. Just wanted to follow up, Doug, on one of your comments towards the end of your prepared remarks, just anticipating the improvement in TI and health and agriculture as you kind of get into the second half of the year. Is that because you get to easier comps, or do you see demonstrable change in demand within those different revenue streams within those different business lines?

Sebastiano Carmine Petti: Hi, Thank you for taking the question just wanted to follow up Doug.

Sebastiano Carmine Petti: Comments towards the end of the prepared remarks, just anthos.

Sebastiano Carmine Petti: Anticipating the improvement in Ti and health and agriculture, as you kind of get into the second half of the year.

Douglas French: And specifically on Telus Health, I mean, the guidance that Telus Health has given, and Telus International has given, I'm sorry, anticipates, you know, sequential declines and then exit rates, you know, sequential exit rates that are, again, pretty healthy. Again, just trying to underpin or, you know, just trying to think about the underlying drivers of demand and what is implied within that and what is giving you confidence in that. And then just kind of going back to Maher's question, just thinking about the revenue context within the T-TECH revenue guidance.

Sebastiano Carmine Petti: Is that because you get to easier comps or do you see demonstrable change in demand within those deferred revenue within.

Douglas French: Within those different business lines, and specifically on Telus health.

Douglas French: In the guidance that tell us help us, giving them tell us international agreement I'm sorry.

Douglas French: Anticipating a sequential declines and then exit rates.

Douglas French: Sequential extra rate center again pretty healthy.

Douglas French: I'm, just trying to underpin or just trying to think about the underlying drivers of demand and what is implied within that and what is giving you confidence in that and then just kind of going back to <unk> question and just thinking about the revenue context within the <unk> revenue guidance, what do we need to see within consumer within health.

Douglas French: What do we need to see within consumer, within health, to kind of feel more comfortable about that revenue range? Thank you. Okay, we'll do a bit of a daisy chain on this Doug, and we'll kick it off briefly.

Speaker Change: Feel more comfortable about that revenue rich. Thank you.

Douglas French: And I'll ask Navin to make the commentary on B2B health, Zainulon, consumer health, and Jeff as it relates to TI. Yeah, so just overall, we have confidence from the perspective of we've been going through our plans on the funnel, as you've heard from Navin, and you'll hear from Jeff in a moment on the losses that we had had in TI, and it's on a path to recovery based on sales with Telus, with Google, with others, and confidence in ag, as we've talked about on from Navin on the funnel, in conjunction with the largest sales we've had in the last two quarters.

Douglas French: Okay, we will do a bit of a daisy chain on that Doug.

Navin Arora: <unk> will kick it off briefly then.

Douglas French: Sure.

Douglas French: Nadine to make the commentary.

Douglas French: On <unk> health Zeno on consumer health and Jeff as it relates to Ti.

Douglas French: Doug why don't you go ahead, yes. So just overall, we have confidence from the perspective of we.

Douglas French: We've been going through our plans on the funnel as you have heard from from Devine, you will hear and you'll hear from Jeff in a moment on that.

Douglas French: Losses that we.

Douglas French: Has had had in Gi and it's on a path to recovery based on sales and tell us with Google with others.

Douglas French: And.

Douglas French: Confidence in AG as we've talked about on on from Nadine on the funnel in conjunction with the largest sales we've had in the last two quarters. So.

Douglas French: So it is all aligned with our projections, it's all aligned with our guidance. We do believe the contributions are aligned with what we have been suggesting to the street and our market are our targets for health, ag, and TI. There's nothing abnormal in any of those beyond what we've already highlighted.

Douglas French: It is all aligned with our projection is all aligned with our guidance. We do believe the contributions are aligned with what we have been.

Douglas French: Suggesting to the to the to the street in our market our targets for health and Ti.

Douglas French: Nothing abnormal in any of those beyond what we've already already highlighted.

Jeffrey D. Puritt: Jeff, you want to follow up quickly, briefly? Sure, we guided at first instance and then reiterated the first half/second half split for revenue 48 52% for adjusted even to 45 55. That seasonality is somewhat consistent over the past several years and further reinforced by the visibility we have for the wins we've had in Q1 in particular, just over the last couple of months.

Douglas French: Jeff do you want to follow up quickly briefly.

Jeffrey D. Puritt: Sure.

Jeffrey D. Puritt: Guided in first instance, and then reiterated.

Jeffrey D. Puritt: First half second half split for revenue 48, 52% for adjusted EBITDA of $45 55 that seasonality is somewhat consistent over the past several years and further reinforced by the visibility we have for the.

Jeffrey D. Puritt: Yes.

Jeffrey D. Puritt: Wins, we've had in Q1 in particular.

Jeffrey D. Puritt: To Doug's comment a moment ago, it's also predicated upon stabilization in the historical decline and now hopefully coming out of that with our social media clients as well as continued strong growth, 30% year-over-year for the quarter serving Google and 22% year-over-year for the first quarter serving Telus. So we think that the view we've reaffirmed is prudent and appropriate, reflective of what we're actually seeing and not entirely inconsistent with Thanks, Jeff. Yeah, thanks, Darren. So just to answer the question directly, is it real growth? Absolutely.

Jeff: Just over the last couple of months to Doug comment a moment ago. It's also predicated upon stabilization in the historical.

Speaker Change: Decline and now hopefully coming out of that with our social media client as well as continued strong growth of 30% year over year for the quarter, serving Google and 22% year over year in the first quarter, serving tell us. So we think that the view we've reaffirmed.

Speaker Change: As is prudent and appropriate reflective of what we're actually seeing and not entirely inconsistent with our historical seasonal profile.

Speaker Change: Thanks, Jeff.

Jeffrey D. Puritt: Okay.

Speaker Change: Yes, thanks Darren.

Speaker Change: So just to answer the question directly.

Speaker Change: Is it real growth absolutely as I shared.

Navin Arora: You know, I shared, the sales booking. , , , , , , , , , , , , , , In both health and agriculture, we have a really excellent set of assets, really differentiated products and capabilities. And one of the things that we've been really focused on is investing in our channel and distribution strength to really drive the volume and the quality of sales. And so we're, you know, we've made those investments, you know, throughout 2023, but really accelerated them in the back half of 2023. And now we're starting to see those investments pay dividends.

Navin Arora: Sales booking.

Navin Arora: Numbers for health in Q1, and that that absolutely translates into revenue growth and we are.

Navin Arora: In terms of the drivers of the demand I really believe in both health and agriculture, we have really excellent set of.

Navin Arora: Assets.

Navin Arora: Really differentiated.

Navin Arora: <unk> capabilities and one of the things that we've been really focused on is investing in our <unk>.

Navin Arora: Panel and distribution strength to really drive the volume and the quality of sales and so we've made those investments.

Navin Arora: Throughout 2023, but really accelerated them in the back half of 2023 and now we're starting to see those investments pay dividends and so for example in.

Navin Arora: As Darren mentioned.

Navin Arora: And so, you know, for example, as Darren mentioned, we had our best two back-to-back quarters in terms of sales growth in the agriculture business as well, our agriculture and consumer goods business. And in our animal agriculture space, we're starting to really see that high single-digit revenue growth kick in now quarter after quarter. So I think we've got a great story to tell, differentiated products and services, and now the right investments around channel and distribution, and we should see that actually accelerate month over month as those investments start to really mature and we get through the learning curve on how to sell these products and services and start to see that acceleration in growth.

Navin Arora: We had our best two back to back quarters in terms of sales growth in the agriculture business as well, our agriculture and consumer goods business and.

Navin Arora: In our animal agriculture space, we're starting to really see that high single digits.

Navin Arora: Revenue growth kick in now quarter after quarter. So I think we've got a great story to tell and differentiated products and services.

Navin Arora: Now the right investments around channel and distribution and we should see that actually accelerate.

Navin Arora: Month over month ads, those investments start to really mature and we get through the learning curve on how to.

Navin Arora: To sell these products and services.

Navin Arora: And the last thing I'll say is, we've got an amazing list of our base of customers across Telus Business Solutions, across Telus International, across Telus Agriculture, and we're just starting on our journey in terms of driving health penetration, our health product penetration into that base. And so when we look at it from a B2B perspective, our product into, with the latest health capability of our total mental health product. You know, we just see that accelerate on top of our existing health products and services.

Navin Arora: And start to see that acceleration in growth and the last thing I'll say is we've got an amazing list.

Navin Arora: Our base of customers.

Navin Arora: Across <unk> business solutions across Telus International Cross tell us agriculture, and we're just starting on our journey in terms of driving health penetration, our health product penetration into that base and so when we look at it from a BBB perspective, our product intensity opportunity there.

Navin Arora: It goes beyond just telecom services, but obviously into these great health capabilities.

Navin Arora: With the latest health capability of our total mental health.

Navin Arora: Product.

Navin Arora: We just see that accelerating on top of our existing health products and services. So I think it's a really good developing story and we're going to see some.

Navin Arora: So I think it's a really good developing story, a nice, you know, steady acceleration in the quarter. Shannon, do you want to pile on about consumer health, or do you want to leave it there? I can, I can do, maybe just offer one.

Navin Arora: Nice.

Shannon: Steady acceleration as the quarters go.

Shannon: So anything you want to pile on on consumer health or do you want to leave it there.

Shannon: I can I can do maybe just tougher one.

Zainul Mawji: I want to take this element and just say that fundamentally, I don't think on our revenue profile we can comment on what we think the competitive environment will do or won't do. What we're going to focus on is insulating ourselves accordingly with the capabilities that we have that are differentiated and continuing to grow those capabilities, whether they're consumer health-oriented or on the back of our home automation capability suite or on the back of our very differentiated OTT offerings.

Shannon: Element and just say that fundamentally.

Zainul Mawji: I don't think our revenue on a revenue profile, we can comment on what we think that competitive environment will will do work won't do what.

Zainul Mawji: We're going to focus on is insulating ourselves accordingly, with the capabilities that we have that are differentiated and continuing to grow those capabilities, whether they're consumer health oriented or on the back of our home automation capability suite on the back of our <unk>.

Speaker Change: Very good.

Zainul Mawji: Differentiated OTT offering so we're going to continue to focus on that and in parallel on cost to serve and continue to differentiate our brands accordingly, and add more value to come.

Zainul Mawji: We're going to continue to focus on that and, in parallel, on cost to serve and continue to differentiate our brands accordingly and add more value to customers based on those differentiated offerings that are really unmatched in the market. And because of our relationship with TI, our speed to market capability and delivery as well as our ability to own those assets and own the IP of those assets is also differentiated relative to our peers and changes the cost to serve profile of offering new services.

Zainul Mawji: Customers based on differentiated offerings that are really unmatched in the market and because of our relationship with ti or speed to market capability and delivery as well as our ability to own those assets and own the IP of those assets is.

Zainul Mawji: Also differentiated relative to our peers and changes the cost to serve profile of offering new services.

Zainul Mawji: Thanks. Thank you. May I?

Zainul Mawji: Thanks.

Speaker Change: Our final question. Please.

Operator: Yes, the last question in the queue comes from Simon Flannery of Morgan Stanley. Please go ahead. Right. Thanks for fitting me in there. If I could return to the convergence and the bundling question, we've seen Verizon and now AT&T really lean into fixed wireless for business, and they like the lower usage characteristics versus a consumer product.

Zainul Mawji: Yes.

Zainul Mawji: Last question in the queue comes from Simon Flannery.

Simon William Flannery: From Morgan Stanley. Please go ahead.

Operator: Great.

Simon William Flannery: Thanks for fitting me in there if I could return to the convergence and the bundling question, we've seen Verizon and now AT&T really lean into fixed wireless for business and they like the.

Simon William Flannery: Lower usage characteristics versus a consumer product now that you've rolled out <unk> and we're seeing a lot of interesting business use cases, whether thats for backup for tougher to cover locations it'd be great to see.

Simon William Flannery: Now that you've rolled out 5G, and we're seeing a lot of interesting business use cases, whether that's for backup or for tougher-to-cover locations, it would be great to see how you're thinking about that as an extra product to leverage your 5G network outside, particularly where you have fiber. Thanks. Navin, do you want to speak to that as it relates to the B2B component or Zainul holistically?

Navin Arora: See how youre thinking about that.

Navin Arora: An extra product to leverage your <unk> network outside particularly where you have fiber. Thanks.

Simon William Flannery: Dan you want to speak to that as it relates to the <unk> component.

Navin Arora: Our Santa Holistically.

Speaker Change: If you can go ahead.

Navin Arora: Yeah, thanks for the question, Simon. Yeah, absolutely. We're looking at how we can bring fixed wireless in for business, and you hit the nail on the head because, you know, the usage characteristics are different and also the timing of usage is different. And so that allows us to manage, you know, spectrum in an inefficient way as we look to do this.

Navin Arora: Yes, thanks for the question Simon Yes.

Speaker Change: Yes, absolutely.

Navin Arora: We're looking at.

Navin Arora: How we can.

Navin Arora: Bring fixed wireless things for business.

Navin Arora: You hit the comment Bang on because.

Navin Arora: Usage characteristics are are different.

Navin Arora: And also the timing of usage is different and so that allows us to manage.

Navin Arora: Spectrum.

Navin Arora: In an inefficient.

Navin Arora: As we look to do this so.

Navin Arora: So, I, you know, I, and we are absolutely looking at it. We're looking at how we accelerate it in relation to, you know, where we have pure fiber and other network capabilities. And, you know, it's something that, you know, we'll talk more about in the future. Thank you. Okay, we'll start off there, but it's important to point out that we've been deploying fixed wireless as an access methodology since about 2009. So a well-known complement to what we're doing on broadband wireline and wireless along the way.

Navin Arora: So we are absolutely looking at it we're looking at how we accelerated in.

Navin Arora: Relation to where we have pure fiber and other network capabilities.

Navin Arora: Is something that we'll talk more about into the future.

Speaker Change: Thank you.

Speaker Change: Okay, well thought out there, but I think important to point out we've been deploying fixed wireless as an access methodologies since about 2009, so well.

Navin Arora: Well familiar complement what we're doing on broadband wireline and wireless along the way. Thank you Simon.

Darren Entwistle: Thank you, Simon. Thank you, everyone, for joining us today. If there's any follow-ups, please feel free to reach out to the IR team. Neha, over to you. This concludes the Telus 2024 Q1 earnings conference call. Thank you for your participation and have a nice day.

Speaker Change: Thanks, Simon and thanks, everyone for joining us today, if theres any follow ups. Please feel free to reach out to the IR team.

Speaker Change: Over to you.

Speaker Change: This concludes the <unk> 2008, 2000 for Q1 earnings Conference call. Thank you for your participation and have a nicely.