Q3 2024 TELUS Corp Earnings Call

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The conference is now being recorded.

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Speaker Change: Good day and welcome to the <unk> 24, Q3 earnings Conference call.

Speaker Change: Like to introduce your speaker Mr. Robert Mitchell. Please go ahead.

Speaker Change: Hello, everyone. Thank you for joining us today, our third quarter 2024 results news release, MD&A financial statements and detailed supplemental investor information were posted to our website earlier this morning.

Speaker Change: On our call today, we will begin with remarks by Darren and Doug for the Q&A.

Speaker Change: I'll be joined by Zeno <unk>.

Speaker Change: Jason.

Speaker Change: Hi.

Speaker Change: Yes, that's fine.

Speaker Change: Yes.

Speaker Change: Go ahead Sir.

Speaker Change: [noise] War.

Speaker Change: Thank you Dror.

Speaker Change: No Sir.

Speaker Change: Please join us as we observe the styling.

Speaker Change: And our.

Speaker Change: For an hour.

Speaker Change: We're just going to take a moment.

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Speaker Change: [noise].

Speaker Change: [noise] okay.

Speaker Change: Just carrying on our call today will begin with remarks by Darren and Doug for the Q&A portion will be joined by saying only being in Jason.

Speaker Change: Briefly prepared remarks slides and answers to questions contain forward looking statements actual results could vary from these statements.

Speaker Change: Functions in which they're based in external risks could cause them to differ are outlined in our public filings.

Adding in our.

Speaker Change: Our third quarter 'twenty to an annual 2023 MD&A.

Darren: With that over to you Darren.

Darren: Thanks, Rocky and Hello, everyone in the third quarter, our teams dedication to operational excellence led to industry, leading financial results and customer growth harnessing, our premier asset portfolio and focused commitment to cost efficiency and operating effectiveness.

Our results demonstrate our ability to deliver sustainable profitable growth anchored by our strategic emphasis on margin accretive customer expansion globally, leading broadband networks and of course, our customer centric culture.

Darren: This enabled industry best total net additions of 347000 customers.

Darren: Our team's passion for delivering customer service excellence once again contributed to industry, leading loyalty across our key product lines.

Darren: Notably postpaid mobile phone churn was once again below 1%. Furthermore, churn for Telus is branded mobility and home bundled households nationally was also below 1%.

Darren: This showcases the consistent potency of our unmatched bundled product offerings across mobile and home and our industry, leading customer experience over our industry best pure fiber and wireless broadband networks.

Darren: Looking at our financial results, we achieved solid and resilient third quarter T Chek EBITDA growth of five 6%.

Darren: This reflects the progression of our ongoing transformational efficiency programs, which are clearly bearing fruit.

Darren: Let's turn now and take a look at our T Chek mobile results.

Darren: Tell us realized industry, leading third quarter customer growth of 289000 net additions. This included robust mobile phone net additions of 130000, driven alongside our continued focus on profitable margin accretive customer growth.

Darren: Indeed, we are doubling down on our disciplined focus on profitability as we progress through the busy and highly competitive final quarter of the year and into 2025.

By way of example, we strategically chose not to match dilutive offers that we saw in market during the back to school period.

Darren: Our efforts will ensure our mobile customer growth drive sustainable EBITDA and cash flow accretion for our business and for our investors.

Darren: Mobile subscriber growth also included strong gains in connected devices with net additions of 159000, reflecting ongoing momentum with respect to our five G and Iot B to B solutions.

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

Darren: Blended mobile phone churn of 109% was up slightly against the backdrop of continued elevated competitive activity, whilst we drove a meaningful improvement over the higher year over year increases seen in the first two quarters of the year.

Darren: Although this is not a level of churn at which our team is content. It once again represents an industry best result by a substantial margin versus our peer group.

Darren: Notably postpaid mobile phone churn was zero debt, 9% in the quarter as we progress through our 11th consecutive year with a churn rate below 1%.

Darren: This is an outstanding result on a global basis and reflective of the industry best customer experience, our Telus team delivers time and time again for our clients.

Darren: The close on mobile third quarter ARPA was $58 85. This.

Darren: This was down year over year with a flat rate of decline as compared to the second quarter largely as a result of continued intense promotional market activity that we are familiar with.

Darren: Our team remains focused on driving improved outcomes through multiple levers prospectively.

Darren: These include enhancing our premium bundle offers across mobility and fixed to drive accretive household economics. These include optimizing our highly differentiated product portfolio and brand mix.

Darren: These include driving unmatched product development product differentiation and product intensity and these include maintaining our strategic focus on profitable growth and sustainable economics for our business.

Darren: Our flanker brands continue to offer strong customer value in key growth segments, including public mobile with its compelling amp who attributes.

Darren: Through digital transformation, we're meaningfully lowering our cost to serve across the board inclusive of supporting an attractive <unk> for B Y O D and flanker activity.

Darren: Furthermore, our growing product intensity now at more than three dot two products per household and growing increases both average revenue and average margin per home, while simultaneously reducing churn.

Darren: Thus, we see sequential benefit as we bundle more fixed and mobility products on a national basis significantly enhancing customer lifetime revenue and the associated economics.

Darren: Notably the team has driven 8% year over year growth in bundled mobile and home households on a national basis.

Darren: These efforts will continue to be supported by our strategic focus on winning and retaining profitable customers whilst remaining highly disciplined in respect of device subsidies.

Darren: Moreover, we continue to expect connected devices and Iot to increasingly contribute to network revenue <unk> and <unk> and seeing that growth at a level of materiality prospectively.

Darren: Our industry, leading customer loyalty and focus on profitable growth allow us to continue delivering industry best mobile phone lifetime revenue, which consistently exceeds our national peers by a considerable margin specifically up to 46% in the third quarter.

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 growth.

Darren: Indeed, our team achieved robust third quarter Internet net additions of 34000.

Darren: Importantly, consumers in Western Canada are choosing tell us for our pure fiber superiority, coupled with our customer service excellence, which is sustaining strong growth on a year over year basis.

The way of example, we drove 17% year over year growth in our one gig plus rate plans.

Darren: As compared to one year ago.

Darren: We're also continuing to drive healthy growth in our TV product line with industry, leading net additions of 21000 up slightly on a year over year basis.

Additionally, modest residential voice losses of 9000 were relatively flat year over year and again represented an industry best result, compared to our national peers by a notably wide margin.

Darren: Security net additions of 12000 continue to reflect our successful multi product penetration strategy, although down year over year, largely due to an emphasis on loading higher value customers ahead of the transition to our accretive proprietary platform.

Darren: Overall, our external fixed net addition of 58000 again represented an industry, leading third quarter result for the Telus organization by again, a notable margin.

Darren: This demonstrates the strength of our unique and highly attractive bundled offers across our unmatched portfolio of products and services in combination with our superior customer experience over our ever expanding pure fiber network.

The magnitude of fixed results, we are delivering illustrates the return we're getting on transformational investments in our pure fiber network, which will continue to flow for decades to come given the longitudinal characteristics of this highly valuable asset.

This will be further enhanced by our continued significant innovation on our differentiated product roadmap, where we have multiple service bundling options available with our proven fiber strategy.

Darren: The foundation for this is the first device agnostic smart home platform, which tell US has built leveraging new Iot services and close partnership with AWS as well as the development skills and capacity of our Telus digital team.

This platform enables our entry into new verticals as evidenced by the two new products, we launched in the third quarter.

Darren: Notably our consumer energy management service tell us smart energy will save Canadians money, whilst reducing their environmental footprint.

We also launched tell US home view the next step in our home security automation, allowing customers to monitor their home on our <unk> app and maintain their safety and privacy leveraging AI.

Darren: Our platform will also enable the enhanced integration of existing capabilities, such as health and wellness, whilst at the same time driving meaningful cost disturb improvements as well as licensing savings and revenues.

Our product development differentiated service portfolio and product intensity, driven by leading data and AI capabilities not only positions us for growth, but they also help Canadians save money and an affordability challenged environment.

Looking forward this integrated product portfolio will further solidify our product intensity leadership and present, new revenue sources that are highly differentiated from our competitive peer group.

Darren: Indeed, our product roadmap is national in scope unlocking new opportunities for bundled growth nationally, particularly alongside expanded fiber access as well as international revenues by our licensing agreements with worldwide telecommunications companies.

Darren: Let's turn now and look at Telus business solutions, or TBS, which once again delivered a strong quarter of growth across all lines of business.

Darren: Our team drove continued success in private wireless networks, including a large multi site deployment that went live in the third quarter supporting advanced applications and operational effectiveness.

Darren: Our intense cross sell program across <unk> business, Telus health, Telus, agriculture, and consumer goods and <unk> digital continues to resonate strongly as we increasingly bring the full power of tell us that customers across the globe here.

Year to date, we've closed over $40 million and cross functional sales with a robust and growing sales funnel of over $300 million in opportunities.

Importantly, we achieved a strong quarter within our Iot portfolio delivering double digit year over year growth in Iot revenue driven by strong growth from our emerging private wireless network connected worker and intelligent spaces solutions.

Darren: Notably reflective of our strong customers first culture, our industry, leading networks, our digital capabilities in AI leadership powered by Dell <unk> digital our national business team achieved industry best loyalty results in Q3, our lead which we have made.

Trained for nine consecutive quarters now.

Darren: Looking at Telus health, our team drove revenue growth of 4% as strategic investments in our products, our sales and distribution channels generate strong momentum across our health portfolio.

Darren: Sales bookings across key Telus health growth growth portfolios are up meaningfully on a year to date basis, including being up by 32% and employer solutions, 84% in payer and provider solutions and almost twofold within our health care digital <unk>.

<unk>.

Darren: This indeed does bode well for future revenue growth and expansion at a super normal level the.

Darren: The growth in these areas not only drives global scale for us, but also represent some of our most profitable domestic lines of business.

Darren: Moreover, in the third quarter, our team achieved 50% EBITDA contribution growth within Telus health supported by higher revenue and the realization of $331 million in combined annualized synergies since acquiring <unk> in 2012.

<unk> two.

Darren: This includes $277 million in cost synergies and $54 million in growing and cross selling as we work towards our overall objective of delivering $427 million in synergies by the end of 2025.

Darren: Our strong performance at Telus Health also includes driving a 9% year over year increase in global lives covered up to now $76 million.

Darren: Performance includes supporting health outcomes, and nearly 162 million digital health transactions during the third quarter alone up more than 7% over the same period a year ago.

Darren: And the strong performance at Telus Health includes increasing our virtual care membership the six and 5 million clients up more than 18% over the prior year.

Darren: <unk> within Telus, agriculture, and consumer goods or Tac, we continue to see positive outcomes as we strengthen our market position.

Darren: On the back of record sales performance over the past four quarters. The team delivered year over year revenue growth of more than 20% across our Telus agriculture, and consumer goods business and bookings growth of 65% on a year to date basis.

Darren: Notably this was alongside strong profitability and margin contribution with tax EBITDA contribution being up over 100% relative to the same period a year ago.

Darren: Our commitment to maximizing the full potential of our distinctive global businesses is underscored by leveraging the expertise experience and a high performance culture of our broader Telus team.

Darren: <unk>. This includes capitalizing on significant and highly differentiated cross selling opportunities across all of our <unk> businesses, demonstrating the collective talent and effectiveness of our team in driving our combined success.

Darren: Turning to Telus digital which also reported its third quarter results earlier today, the team delivered stable financial performance compared to the prior quarter signifying a positive step on a recovery trajectory, we remain eager to drive further improvements as we advance our growth objectives.

Darren: Indeed, Telus Digital's comprehensive and growing suite of leading AI solutions continues to demonstrate strong and encouraging momentum.

This includes capturing new client engagements and broader recognition in the market exemplifying our progress in next generation technology applications.

Darren: Moreover, the strength of <unk> Digital's transformational generative AI powered solutions and tools created for all lines of business at Telus continues to enhance their go to market efforts with new and prospective clients.

Darren: As we continue progressing our own digital transformation journey. It offers a unique opportunity for Telus digital to leverage tell us as an innovation lab, which they in turn can exploit as a meaningful reference case for the product Ization of solutions with.

Darren: Their external clients.

Darren: Our confidence in <unk> digital's fundamental drivers of value creation remained strong, particularly given the company's leadership in key areas, including trust and safety safety, including the Digitization of its own and its clients customer experience operations, including tell us.

Darren: And our unique set of tech focused growth assets.

Darren: And it includes the broader evolution of its business towards at technology centric model with the attendant value creation opportunities.

Importantly, we see tellers digital under the capable leadership of Jason and to be is creating positive momentum for its medium and long term growth aspirations.

Darren: In a moment, Doug will provide further commentary about T. Jack Entellus Digital's results.

Darren: In closing the industry, leading customer growth. We continue to report is underpinned by our dedicated team who passionately deliver superior service offerings and digital capabilities over our world, leading wireless and fiber networks.

Darren: The significant broadband network investments, we've made are enabling a resilient EBITDA growth, they're enabling the ongoing monetization of pure fiber and <unk> that are enabling the financial and strategic benefits of copper decommissioning, they're enabling an intense strategic focus on efficiency enhancements.

Darren: And notably Theyre, delivering revenue and profit progression and Telus health and Telus agriculture and consumer goods they.

They also underpin the long term sustainability of our industry, leading dividend growth program the.

The 7% year over year dividend increase announced today represents the 27th increase since we initiated our multiyear dividend growth program in 2011 2011 now in its 14th year.

Speaker Change: Since 2004, Telus has returned more than $26 billion to shareholders, including over $21 billion in dividends, representing approximately $18 per share.

Speaker Change: 14 years since 2011.

Speaker Change: And counting the Telus team is intensely focused on what's next including evolving our product roadmap on a national basis with innovative customer centric offerings in the months and quarters ahead. This will drive further significant differentiation and meaningful revenue.

Speaker Change: Growth opportunities and importantly, buttress the continued advancement of our financial and operational performance and the continuation of our robust dividend growth model prospectively.

Speaker Change: Finally <unk>.

Speaker Change: Demonstrating our organization's longstanding belief in the symbiotic relationship between doing well in business and doing good in the global communities, where our team members live work and serve last month, we celebrated the one year anniversary of the tellers student Bursaries.

Speaker Change: Through the <unk> certain student Bursaries, we're creating the circumstances necessary to empower young people in Canada to realize their full potential.

Speaker Change: In addition to being the largest burst refund in the country that tell US student Bursaries is also unique because of its focus on future leaders, who are volunteering in their communities and driving essential social innovation.

Speaker Change: Since the inception of the Bursaries program that <unk> future Foundation has provided over $4 million to nearly 1000 students.

Speaker Change: 1000 students the talent of the future for community centric organizations like Telus now that's investing for future growth.

Myself and our entire leadership team remained exceedingly grateful for our team's passionate efforts to support our global communities as we strive to deliver outstanding results for all of our stakeholders.

Speaker Change: That note I will turn the call over to uncle, Doug Doug over to you. Thank you Darren and Hello, everyone.

Mobile network revenue growth of 7% was driven by mobile phone and connected device subscriber additions, partially offset by lower mobile phone <unk>, which declined by $3, 4% consistent with Q2.

Speaker Change: <unk> as a result of ongoing impact from the competitive pricing environment, including lower roaming from the adoption of unlimited roaming plans.

Speaker Change: This was partially offset by higher Iot revenue growth. Our strategy continues to focus on strong subscriber economics and profitable growth our ongoing focus for cost efficiency as demonstrated by the increase in our restructuring assumption to approximately $450 million will help offset.

Speaker Change: Industry pricing pressures and allow us to reinvest into the growth of our business and product development.

Speaker Change: These investments will support sustainable EBITDA growth margin expansion and cash flow generation in the quarters and years ahead.

Speaker Change: Fixed data service revenue grew by one 9% year over year, improving sequentially quarter over quarter. This growth was driven by a strong customer net additions of 67000 across our superior product portfolio, a pure fiber internet TV and security and home automation as well as <unk> growth.

Speaker Change: This was partially offset by lower television revenue per customer as customers continue to evolve their entertainment packages, along with technology substitution, including the strong adoption of our national stream plus offering.

At a segment level <unk> operating revenues were up one 9% driven by mobile network mobile equipment fixed data services as well as health and agriculture services revenue, notably other income of $54 million in the quarter increased by $36 million year over year, largely due to gains from the.

Active real estate projects that we have in front of us, resulting from our pure fiber and associated copper decommissioning program.

Speaker Change: We anticipate these gains to continue in the quarters ahead, as we execute against our multiyear real estate development strategy and decommissioning programs as we move more and more of our customers to fiber.

Speaker Change: <unk> adjusted EBITDA increased by five 6% and adjusted margin expanded by 110 basis points to 39% as a result of our focus on profitable loading customer service and product intensity and our cost efficiency programs.

Tell us digital segment continued to see some challenges in the macroeconomic environment and associated pricing pressures, but led to declining revenues about $4, 4% year over year.

Speaker Change: However, this result reflects digital's ability to partially offset these pressures with growth from services provided to our existing customers new clients added over the past 12 months when including the intersegment revenue with tell US operating revenue was up almost 1% demonstrating our strong and unique relationship with <unk> digital.

Speaker Change: Which is creating mutual beneficial opportunities and underscores the crucial role in driving our customer leadership and digital transformation.

Speaker Change: This includes the implementation of our Gen AI applications across all levels of our organization driving further efficiencies and growth opportunities.

This digital adjusted EBITDA was down 30% driven by customer margin pressure with higher investments in the commercial sales team operational effectiveness programs as well as investments in <unk> product development.

Speaker Change: Additionally, the year over year comparison reflects an increase in share based compensation, primarily due to the timing of award grants higher expenses from the awards granted in relation to previous acquisitions.

Speaker Change: Overall stabilization entellus digital's results compared to the prior quarter sure where they are on target to achieve their full year outlook as provided in August on a consolidated basis tell us overall operating revenues increased by 1% year over year and adjusted EBITDA increased by $1 three.

Speaker Change: Adjusted EBITDA margin was 36% and was stable as strong <unk> margin was partially offset with <unk> digital.

Net consolidated income increased by 80% year over year, while basic EPS was higher by 111% on adjusted basis, net income and EPS were higher by 11% and 12% respectively.

Speaker Change: Strong growth was driven by higher adjusted EBITDA and declining depreciation and amortization, partially offset by higher financing costs in the quarter financing costs were higher from the impact of the noncash unrealized changes to the forward element of our virtual purchase power agreements as.

Speaker Change: As well as increased long term debt and higher interest rates.

Speaker Change: Free cash flow of $561 million was higher by $206 million or 58% driven by lower restructuring disbursements and lower capex.

Speaker Change: Consolidated capex declined by $101 million or 13%, primarily driven by our planned capex reductions.

Speaker Change: Consolidated Capex intensity was 13% down 200 basis points over Q3 last year.

Speaker Change: Today, we updated our <unk> financial target for operating revenue, which are now at which we now expect to be slightly below the lower end of our original target range, while remaining above the.

Speaker Change: The current average of analyst consensus estimates.

Speaker Change: This updated outlook both from both the competitive market conditions and our team's focus on operational execution.

Speaker Change: Importantly, our <unk> adjusted EBITDA, along with our consolidated targets for capital expenditures and free cash flow remain unchanged as previously communicated in our Q2 results in August.

Speaker Change: <unk> remained confident in our ability to continue generating strong and growing cash flow for the years ahead, driven by ongoing EBITDA growth and moderating capex intensity.

Speaker Change: This will support our strong balance sheet to provide us ample flexibility to support our growth ambitions.

And shareholder returns at the end of the third quarter, we had approximately $3 2 billion of available liquidity our average cost.

Speaker Change: Long term debt was approximately $4, 4% and the term to maturity of long term debt was $10 six years and our net debt to EBITDA ratio of <unk> 83 times.

As a reminder, the acquisition of wireless spectrum licenses in the recent years is increase that ratio by zero about five six times as we progressed into future years, we anticipate our leverage ratio to improve as we work towards our target ratio through continued EBITDA growth declining capital intensity.

Speaker Change: Asset monetization, including real estate and copper and operating free cash flow expansion as we continue to support our capital allocation priorities, including long term sustainability of our dividend and cash flow growth Robert back to you.

Robert Mitchell: Thanks, Doug Carl we're ready for questions. Please.

Speaker Change: For anyone on the phone if you'd like to kill cancer question. At this time, please dial star one on your phone's keypad.

Speaker Change: First question is from drew Mcreynolds from RBC. Please go ahead drew.

Yes, thanks very much.

Speaker Change: Good afternoon or good morning.

Speaker Change: I'm going to keep my question that.

Speaker Change: A big picture one.

Speaker Change: 2024, obviously has been a tough.

Speaker Change: Year for the for the industry and the <unk> kind of gone out a little bit here.

Speaker Change: If you step back and.

Speaker Change: Darin.

Speaker Change: Kind of watch the evolution of telephone fiber bundling product intensity.

And to the public mobile Digitization customer experience I think everyone can agree you've been ahead of the curve here. So when you describe what's next.

It's kind of interesting to see what that playbook looks like so my question is.

Speaker Change: And it's a question that all investors are asking right. Now is just what is really the revenue growth potential here for the industry.

Speaker Change: So I'm just wondering from <unk> perspective, what that outlook looks like and if you could kind of put it into two buckets, one would be the outlook for the traditional core telecom business.

Speaker Change: Let's say just core wireline and wireless.

Speaker Change: And then can you give us a sense of then the second bucket, which is all of the new revenue streams and initiatives you've put in place. Thank you.

Speaker Change: Okay.

Speaker Change: Okay. Thank you for that.

Speaker Change: Fastball down the middle of the plate drew to get things.

Speaker Change: Kicked off here.

Speaker Change: I'll do my best.

In terms of.

Investing and getting returns.

Speaker Change: From investing we really are focused on a pecking order trifecta of.

Speaker Change: Harvesting the fruits of our labor too.

Speaker Change: Improve our balance sheet prospectively.

That's a super smart thing to do because the attendant economics arent just good for debtholders. There will also be good for our equity holders.

Speaker Change: Secondly for us we.

I think there are still very attractive areas to invest in our business and I'll speak about those in just a moment and I think they will hit your question head on.

Speaker Change: And then thirdly as has been a long term hallmark of our organization when we execute on our investments and we derive our returns we make sure that our investors participate in those returns and so returning the.

Speaker Change: The fruits of our labor to our shareholders via the continuation of our dividend growth model is something that is near and dear to our hearts.

In terms of growth across the two buckets that you've articulated we still see significant opportunities with what we're doing on fiber and <unk> at both the revenue growth level, but also at the cost efficiency level as well we have a ton of.

Unity in terms of revenue growth just on product intensity and cross selling alone.

Speaker Change: I frequently Todd Shai the team would tell us that.

We should be able to grow EBITDA at 5% without bringing on a single new customer such as the opportunity for cross product pollination within our existing customer base. So that opportunity is material if not voluminous.

I think one of the things that massively differentiates our organization is what we're doing on new product and platform development, creating new RG use for the organization I think when you're spending billions and billions of dollars on fiber and <unk>.

You have a fiduciary responsibility to exact economies of scope from those infrastructure investments.

Speaker Change: The significant new product and platform developments that are taking place on a b to C and b to B basis.

Speaker Change: Our huge for this organization and they also give us a level of diversification.

Speaker Change: From certain core areas, where we've seen price commoditization and margin compression from the competitive intensity. We liked the thought of developing products that our competitors don't have and there is a long long roadmap of opportunities from smart home automation to <unk> commercialization and product <unk>.

Speaker Change: <unk>.

Speaker Change: We still think there is significant opportunity for us on the national expansion front and international as it relates to some of the SaaS services that we're now selling and penetration opportunities in a number of key markets from consumer to small and medium business.

Speaker Change: We're very excited about our emerging growth businesses at Telus health until its agriculture and consumer goods.

Speaker Change: I think what you've seen in terms of our third quarter performance within health and agriculture, and consumer goods bodes well for what you can expect that into the future as it relates to sales growth being translated into revenue growth being translated into EBITDA growth being translated into cash flow generation.

Speaker Change: And when you couple that with an improving trajectory in terms of the recovery path for Telus Digital who is also aiding and abetting what Telus is doing in its own digital transformation.

Speaker Change: There's a lot of opportunity there and of course that opportunities on a global basis. So yes domestic.

But these are big big markets on a global basis for us to pursue and I like the way that we're positioned in those industries in terms of the asset collection that we have and where we're positioned at the key pivot points.

Speaker Change: Although it doesn't get talked about a lot. We're also investing on the cost efficiency side. So we want to see the the bias of EBITDA accretion coming from revenue generation, but we always want to see EBITDA also benefiting from constant improvements in cost efficiency and we still have lots.

Speaker Change: <unk> room for improvement in terms of the efficiency of our operations with leveraging our digital and growing.

Good evening growing and leading AI capabilities that are very exciting for us on both CX and on a on a go to market basis.

We're also investing in monetization opportunities.

What we're talking about and Doug alluded to this but on real estate monetization and copper mining recycling and monetization.

Speaker Change: There are opportunities that are not just recurring.

Speaker Change: Our longitudinal opportunities over the longer term for this organization and we'd like to say that there is a byproduct of the gift that just keeps on giving which is our fiber infrastructure in our expanding footprint.

Speaker Change: And of course, we also as it relates to the emerging businesses that I've just talked about we've got perspective monetization opportunities in terms of growing health and AG and consumer goods on either a partnership path.

Speaker Change: And into the future as it relates to monetization or prospectively.

Speaker Change: <unk> Ipos are a combination of.

Speaker Change: And one of the things that I think is missing when you look at all of those areas for revenue accretion on a robust basis, a sustained basis and on a quality of revenue and earnings basis Theres. One other thing that get gets missed is that.

Speaker Change: Chelsea is an organization that's undergoing.

Speaker Change: The most significant transformation.

Speaker Change: In its history.

Digital transformation would tell us.

Speaker Change: The cloud of vacation tell us and the evolution of our product portfolio to be one of a SaaS construct in combination with the pervasiveness of our wideband fiber infrastructure is allowing us to drive down our capital intense.

City to the 10% zone and I think when you take those two buckets in answering your question in terms of profitable revenue growth and combined them with the factors that are getting us down to a ci of circa 10%.

Speaker Change: I think we're going to be earning our way to an elevation in our valuation multiple.

Speaker Change: That's great. Thank you Dan for all of that.

Speaker Change: Thanks True Karl next question please.

Speaker Change: The next question is from Vince Valentini from TD Securities. Please go ahead Vince.

Vince Valentini: Hey, thanks very much.

Speaker Change: I have a different question, but I just wanted given everything you just said there Darren can I wrap that up with one final point.

Speaker Change: If you have so much opportunity in front of you and Youre getting capex down to 10%.

Speaker Change: Is there any reason you shouldnt be growing your dividend, 7% and you grow it for 7% per year is when when you were spending a lot more capex in that and had to borrow a bit. So if you can level set us on that final piece of the puzzle you. Just you just said and then more technical question for Doug If I could.

Speaker Change: <unk>.

Speaker Change: $36 million for real estate.

Speaker Change: Can you just revised exactly how that works. This is just you absorb some of the initial chunk of real estate and every time you do a sale its going to count as revenue is that a 100% flowing to EBITDA or any cost associated with that that'd be great. Thanks.

Speaker Change: So a direct answer to your question Vince No reason.

Speaker Change: Doug over to you.

Doug Carl: On the real estate side, what Youre seeing is really 50% of the gain of those properties. So.

Speaker Change: We are moving them into partnerships, where our partners bringing in cash.

Speaker Change: So we are in essence, selling 50% of the property upfront and then once developed and put into commercial we would recognize the other 50% of the gain and then any income that comes from it concurrently so you're building an asset of consequence.

Speaker Change: And it's accumulating across the board as we speak so.

Strong building of our portfolio.

Speaker Change: It would be no incremental cash to us to develop it and to complete that cycle and.

Speaker Change: And we consider containers continue to see the benefits of this for many years to come.

Speaker Change: Long term recurring with another shoe to fall on a positive basis absolutely.

Sorry.

When you book, the 50% sale as revenue is there any cost associated with it or is it 36.

Speaker Change: After the cost base of the land was at the time most of the land we've owned for many many years. So the cost base is relatively low okay.

Speaker Change: Okay. Thank you.

Speaker Change: Thanks, Karl next question please.

Speaker Change: The next question is from Stephanie price from CIBC. Please go ahead Stephanie.

Stephanie Price: Hi, good morning.

Stephanie Price: They're engaging and divestitures and structured transactions as I take a look at the balance sheet.

Hi, good afternoon, just on the color to thinking about or how do you think about.

Speaker Change: Non core assets here.

Speaker Change: So we will.

Speaker Change: Obviously looked at noncore assets from our perspective.

Speaker Change: The gift that keeps on giving with fiber on Fi around real estate and copper as Darren highlighted we have also done small divestitures of business lines that arent in our long term strategic view and.

Speaker Change: With our fiduciary responsibility will continue to look at other monetization opportunities as we as we delever over time.

Speaker Change: But in addition, there does the cash flow generation and Capex reductions all of those will contribute to a stronger balance sheet.

Speaker Change: And we'll continue to monitor what is best for our organization moving forward.

Speaker Change: Okay.

Speaker Change: And then just on the restructuring it looks like you've brought the cost up a little bit I think the restructuring to be completed this quarter.

Speaker Change: Just curious how we should think about the margin cadence.

Speaker Change: The remainder of the year.

Any additional opportunities for efficiency.

Speaker Change: The restructuring overall, I'd argue and Darren points on Digitization and opportunities to continue to rationalize our cost structure will probably won't be over for a very long time.

Speaker Change: So what we've identified as more opportunity that as we buy.

Speaker Change: Bound more digital found more automation.

Speaker Change: We're continuing to reduce our cost structure concurrently.

Speaker Change: And so I would say that's what we're seeing the cash from that is primarily going to hit US next year on that way very little within year.

Speaker Change: And the benefits benefits from that will most likely be a Q1 is where youll see them start.

Speaker Change: I think it's notable how proactive and preemptive we've been with our cost efficiency programs that tell us dating back to 2023 and seen those.

Speaker Change: Definitely continue into.

Speaker Change: Into 2024.

So that we're trying to get ahead of market condition conditions on anticipatory basis, and which is why we've taken our workforce restructuring charge up too.

Speaker Change: $450 million for the 2024 year.

Speaker Change: We are continuing to be aggressive in leveraging our digital transformation leadership, which is Ah.

Speaker Change: Real a real hallmark of our success and we've got a market leadership, there so we need to lean into it.

Speaker Change: And tell US digital has been a huge asset for us and a unique asset. This is not something that our peers have.

Speaker Change: The skills and development capabilities that they are bringing to support the digital transformation of Telus and the AI tool set that we're using to improve the efficiency of our CX and go to market operations.

Speaker Change: Is material in.

Speaker Change: In nature, and then you can see the these activities to give you some examples.

Speaker Change: In terms of what's happening within the guts of our organization.

Speaker Change: We talked about fiber and $3 two plus products per fiber household then.

Thats, great and we talked about it in terms of bandwidth differentiation and cemetery differentiation, but one of the most important aspects of our pervasive fiber network is that the unit cost to serve is 30% lower than what it was under copper and.

Speaker Change: And so to get the economics of copper decommissioning.

Speaker Change: Then get an exposure to a 30% unit cost to serve improvement with fiber.

Speaker Change: As a pretty potent combination look at what we're doing now with the Abu level with our digital pure play offering with public mobile I think it's indicative of the orientation.

Speaker Change: A R.

Our cost efficiency it doesn't get talked about a lot.

Speaker Change: Because it is very much focused back to drews question on revenue and growth, but the platform that we're building at Telus on a proprietary basis gives us substantial improvements in our cost structure. So when you think about what we're doing on our proprietary television platform a significant improvement.

Speaker Change: In our cost structure, what we're doing on smart home security on our platform significant improvement in our cost structure, what we're doing with Amazon on smart home automation significant improvement in our cost structure.

Speaker Change: And then finally back to the comments I made earlier.

Speaker Change: The evolution to more of a SaaS product construct.

Speaker Change: Provides not just significant profit efficiencies in terms of cost, but cash efficiencies because of the lower capital revenues associated with them and also our ability not just to deploy than domestically, but to export them internationally on a licensing basis and so.

I think thats.

Speaker Change: And I could go deeper on the cost story, but hopefully thats indicative for you.

Speaker Change: Great. Thank you for the color.

Speaker Change: Stephanie next question please Carl.

Carl: Next question is from Maher Yaghi from Scotiabank. Please go ahead.

Maher Yaghi: Great. Thank you for taking my question.

Listening to your prepared remarks.

Speaker Change: We get a clear sign that you still see.

We expect topline and Bottomline growth in your <unk>.

Speaker Change: Telecom business into the future, but how are you approaching your asset portfolio as a whole do you see a need to change our capital.

Speaker Change: Capital allocation.

Speaker Change: Or amplify investments in any of your non telecom businesses to offset pressures on on your telecom business and second question I was hoping if you can provide some visibility on your wireless loading.

We have seen a significant increase in prepaid loading at your peers was it also as visible in your operations this quarter and how do you approach. This trend from a long term lifetime customer value or lifetime customer profitability point of view.

<unk>.

Speaker Change: Okay, why don't we just take a breath.

For me drawing on.

Speaker Change: <unk> answered the first part of your question lost Zeno.

Speaker Change: Why don't I give you an opportunity here to lean in on the prepaid front and then.

Speaker Change: I will close off with capital allocation within our non telecom businesses, although I would call them telecom extension businesses, but I'll get back to that in a second Zane I'll over to you.

Speaker Change: Thanks for the question.

I would say that we have seen a pretty significant shift across our peer group as you mentioned from.

Prepaid mix perspective, what I wanted to highlight though is that our mix has been really consistent quarter over quarter and into 24. So we don't disclose the exact mix, but I can tell you that in Q3. It was it was quite consistent I think the other thing that as we've highlighted is.

Speaker Change: That we have seen really great ampoule characteristics.

Speaker Change: With respect to our public mobile platform and continue to see that as a great lever with respect to you that managing the new dynamics in the industry and then I think it's also important to highlight that the opportunity is to really focus on the lifecycle management of the customer.

Speaker Change: From a pre to post perspective.

That's something that you can see in our retention.

Speaker Change: AVR and continue to see in terms of why we're continuing to gain share in those prepaid segments of the market and I think that fundamentally.

Speaker Change: What we are going to be folks focused on is the absolute most optimal mix from both a revenue growth perspective, as well as an ampoule and household ARPA perspective.

Speaker Change: So that that I think is that relatively consistent with respect to our execution in terms of what you've seen on bundling what you've seen on retention and what you've seen on the overall EBITDA performance of the organization.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Let me try and go from general specific cure I think again, it's important to highlight the trifecta pecking order in terms of capital allocation to specifically address the question.

Speaker Change: That pecking order is to use proceeds to.

Bolster the balance sheet, we really do think that that would be synergistic for both debt and equity holders and position us well prospectively.

<unk> heard me talk about the next step in the pecking order, which we are continue to be excited by the investment opportunities in the business both telecom and.

Speaker Change: Our non telecom.

Speaker Change: Thirdly, we remain committed to returning the money.

Speaker Change: That we achieved through the successful execution of our investments.

Speaker Change: The sustainability materiality of our dividend growth model.

Speaker Change: Second point here is.

Speaker Change: The telecom non telecom delineation is.

Speaker Change: Erroneous way to look at portfolio management tell us what we're doing.

Speaker Change: Telus Health Telus agriculture.

And consumer goods, indeed, even tell us digital.

Speaker Change: These are all data strategies.

Speaker Change: The strategy for our telecom business prospectively is a data strategy from data analytics to data insights data monetization aided and abetted by voluminous data coming off the back of our wideband fiber and <unk> networks or health play is.

Data play our AG play is a data play our consumer goods play is a data play its the extensibility of that orientation from telecom in terms of where we're taking data across that analytics insights and monetization continue into areas that we think are exciting for <unk>.

On health Agriculture, and consumer goods and if you look at the intersection point. It goes it goes beyond data.

You can see intersection points on network and connectivity.

Speaker Change: These are areas on health agriculture, and consumer goods that we think are ripe for digital transformation and the profit attendant with that.

Our global scale and we're excited by that small market share gains have huge nominal economics associated with them. They have not benefited from customer service excellence how much of my prepared remarks today, we're all about customer service excellence loyalty and <unk>.

Speaker Change: Retention, we want to bring our game plan on customer service excellence.

Speaker Change: Agriculture, and consumer goods look at the number of intersection point between health and consumer goods and the traditional telecommunications business, whether it's at the data layer at the device layer at the broadband connectivity layer at the workforce productivity layer. If you think about <unk>.

Speaker Change: And applications and lastly, they fit well culturally with us in terms of the social purpose thesis.

Speaker Change: And then as it relates to capital allocation specifically.

Speaker Change: Let me try and put this in a simple and clear way as it relates to capital allocation prospect of lease.

<unk> health agriculture, and consumer goods.

Speaker Change: <unk> prologue.

What you've seen us doing through 'twenty three 'twenty four is indicative of what you can expect in terms of capital allocation prospectively.

Speaker Change: Or the business secondly, you can see these businesses getting stronger and stronger we've talked about it in terms of sales generation.

Speaker Change: Now manifesting itself in terms of revenue growth and we're seeing the wash through to the EBITDA level.

Speaker Change: That organic foundation is key because anything that we do on an M&A basis, we want to earn that through strong organic growth. If we've got strong organic growth will make better M&A decisions and we will do better at post acquisition integration.

Speaker Change: These M&A.

Speaker Change: Moves by and large back to the past deemed prologue.

Speaker Change: More tuck in acquisitions.

Speaker Change: Product gaps or Geo coverage gaps do complete the overall jigsaw puzzle for the organization.

Speaker Change: In creating the asset composite that we think we need.

Speaker Change: To win along the way.

Speaker Change: This amount of capital allocation still fits within the overall capital capital intensity envelope at a portfolio level, so investing to support the growth in health and AG and consumer goods.

Speaker Change: He is not going to defray or be diluted to getting our capex intensity down into that 10% 11% zone.

Speaker Change: Are mutually inclusive.

In that regard and I think we're excited by that and then prospectively getting that right combination of organic execution and smart precision shopping and ingestion of M&A activities, we want to again earned a way to bring in.

Speaker Change: Partnership maybe following the model that we did previously with <unk> digital or an IPO.

Speaker Change: And the efficacy of the IPO back to capital allocation is that it gives us a transaction currency to consider moves on an addressable market basis that are more ambitious prospectively than what we have been historically within the confines of our own balance sheet.

Speaker Change: I would hope that will give you all the parameters that you would be looking for on that question.

Speaker Change: Very clear thank you Darren.

Speaker Change: Thanks, Matt next question please.

Speaker Change: The next question is from <unk> <unk> from <unk>. Please go ahead.

Hi, Thanks for taking my questions.

Speaker Change: First a clarification Darrin on your answer to <unk> question.

Maybe I didn't understand right, but I think you said you think the business should be able to generate EBITDA growth of 5% before having a single new customer on board.

Speaker Change: I think we can all agree that you are going to have additional customers in the future. So are you guiding for more than 5% EBITDA growth in the future annually.

Speaker Change: So we can watch for that when we go live in February.

Number number one number two the specifics of what I said as I frequently.

Speaker Change: Shai the team that we should be able to generate 5% EBITDA growth just cross selling our products, what I call cross product pollination within our existing client base, such is the materiality or magnitude of that opportunity on the consumer.

Speaker Change: <unk> and on <unk> to be as well and I. Thank the entire team would say there is a hell of a lot of opportunity here for profitable revenue growth in that regard.

Speaker Change: That is not an edict to not go out and get new customers.

Speaker Change: We will be looking to do both I'm, just making a point that the opportunity on the product intensity front.

Is salivating and.

Speaker Change: As a responsible management team, we should go out and do that and the reason why I push hard on that is that I think our first responsibility is to sweat the assets on the money that we've already spent which is why I made the comment about getting better economies of scope on fiber and <unk>.

Speaker Change: <unk> sweat those assets, we've already deployed the infrastructure, we already have the customer relationship. It's a warm relationship it's easier to sell a new product to an existing customer than a new product to a new customer and so less leverage those more attractive economics, along the way and then not only do we get more revenue from that.

Speaker Change: Customer, but the relationship gets stickier, so it lowers the churn which improves the overall lifetime value, but we are going to do that and yes. At the same time go out and hunt for new relationships that can embellish.

Speaker Change: Client portfolio that we already have so it's the duality of both and you can stay tuned for what the future holds when we when we give our 2025.

Speaker Change: Guidance when the time comes but thanks for the question.

Speaker Change: Looking forward to it thank you.

Jerome: Thanks, Jerome currently have time for one more question. Please.

The question is from <unk> from Canaccord Genuity. Please go ahead.

Speaker Change: Thanks for squeezing me in two from me first of all on wireline.

Speaker Change: Obviously, you're starting to see a little bit of a rebound there in the fixed data services number.

Speaker Change: Up to 2% and obviously the broadband.

Speaker Change: Sub loading has been positive as well how should we think about this line item going forward.

Speaker Change: Particularly in the backdrop of competitive conditions in the west and maybe.

Speaker Change: Just an update on <unk>.

Speaker Change: On those conditions and does pricing promotions there.

And secondly, maybe a little bit more of a specific question on wireless <unk>.

When you think about the <unk> pressure and we obviously focus on the single ARPA number but there is.

Speaker Change: Got it.

Speaker Change: A number of cohorts there there could be.

Speaker Change: Chunk of customers at 70 to $80 $90. When you think about the degradation in <unk>.

Speaker Change: Whats the construct of that is it sort of maybe the.

Speaker Change: That's below the average going even lower or are you seeing chunks of the upstairs at the upper tiers, perhaps also revising I realize that's a bit of a specific question. So maybe just a general answer that would help thank you.

Speaker Change: Okay.

Speaker Change: What I will do on on this one.

Speaker Change: As Zane I'll ask you to speak to.

Speaker Change: Fixed data growth.

Zane: And what we're doing there prospectively.

Speaker Change: At the revenue and profitability line as well as on the on the wireless <unk> fronts, but naveen I would like to you because it frequently gets forgotten to supplement <unk> answer on both questions with the <unk> view.

Within the SMB area.

Speaker Change: Zane will over to you.

Speaker Change: Darrin. Thanks for the question I think you've definitely seen from US overall, a level of consistency I think is been consistency with respect to our growth on subscribers on the wireline side <unk> seen consistency with respect to our revenue growth and our goal is to continue driving that consistency as well.

<unk> is continuing to drive growth Darren talked a lot about our product intensity thesis and some of the new exciting product capabilities that we're bringing to market.

Speaker Change: To your question specifically on the competitive side, we're absolutely continuing to see that competitive pressure.

Speaker Change: It was more intense than bleeding from wireless into wireline and we continue to see that but we've seen our retention capability stay strong and our product intensity continue to grow and I think we've also seen pretty strong uptake both in our mobile in home subscriber growth as Darren highlighted.

Speaker Change: But as well in our ability to drive step ups and get customers higher speeds and higher capabilities and of course that superiority that is very unique to us.

Maybe the final point I'll make on the wireline side is that with the opportunity to drive scale economics with the continuation of growth in our fiber footprint and growth in our fiber loading and with our product intensity. There is also a significant ampoule economic thesis there that we're continuing to pursue.

Speaker Change: I think that customers are looking really for more simplification and more seamless experience in terms of how they interact with us and other providers and we want to be on the leading edge of providing those capabilities from a digitization and customer first experience perspective, and so I think there is some material growth opportunity.

Speaker Change: On both that cost basis, but on a customer experience improvement thesis.

Speaker Change: With respect to your question on <unk>.

Speaker Change: Definitely a very dynamic environment, and we continue to see different dynamics emerge sort of quarter over quarter I think based on the results that we have all communicated in the last couple of weeks you definitely see the aggression and where the <unk> dilution is coming from and you've seen us.

Speaker Change: Really focused on quality versus dilutive loading and you've seen us focus on driving the right optimal mix the right bundling and the right retention outcomes. So that is the most.

Speaker Change: That thesis applies greatly to our postpaid customers and to ensuring that we continue to drive their perspective of value in what they're getting from a higher tier capability suite across both mobile and home.

Speaker Change: I would say that there is limited dilution at the lower end of the Mark at the lowest end of the market.

Speaker Change: As <unk> highlighted but theres more offers where premium offerings continue to be offered to that lower end of the market and so we need to ensure that we continue to pursue the right balance of value proposition to the customer based on the cost of those services and based on what customers want to acquire.

Speaker Change: In terms of multi product capabilities in multi line capabilities.

Speaker Change: We're heading into the most aggressive quarter of the year.

Speaker Change: It's hard to say exactly how things will progress, but I think that you've seen a lot of consistency with respect to how we behave in the market and how we're going to continue driving our product intensity and our retention focus thesis going forward.

Speaker Change: Over to intervene.

Speaker Change: Yes, Thanks, Danielle I think a number of things that you said on the on the consumer side of play on the business side. So a few top ups I think just to hit the.

Speaker Change: The wireline revenue and profitability improvements were actually quite happy with the steady progress, we're making on the <unk> side in this in this regard I think a couple of points to be made their first and foremost.

Speaker Change: We have a volume play.

Speaker Change: We have a market share play that.

Speaker Change: Allows us to run some of the pricing challenges in the market that we're taking advantage of and.

Speaker Change: In the process driving good revenue good cash growth as a result, I think secondly on the cost side as.

Speaker Change: As you've heard a couple of times on this call. We continue to push extremely hard in terms of our digital automation.

And Jen AI investments.

A lot of that driven by our.

Speaker Change: <unk> digital experience team so.

Speaker Change: Not only are we growing revenue through good.

Speaker Change: Market share expansion, but doing that.

Speaker Change: With a good cost structure and good cost reductions as a result, I think the.

Speaker Change: On the fixed space as you asked specifically when you think about.

Speaker Change: The cross sell opportunity within Canada, and the linkage across all of our <unk> assets.

Speaker Change: That bodes really well and we know that every for example every business and in Canada.

Speaker Change: Needs employer based health care services and to be able to link. The two is a big part of our cross sell opportunity and on a global basis, we're seeing that cross sell funnel grow significantly and we've got over $300 million in that funnel.

Speaker Change: Right now so.

Speaker Change: I think that that also is an important part of how we're going to grow revenue, how we're going to improve.

Speaker Change: Product intensity and as a result improve.

Speaker Change: <unk> and the last thing I'll say is.

Speaker Change: Just back to your point around wireless <unk> one of the other components as you said the different construct.

Speaker Change: <unk>.

Speaker Change: Good.

Iot and industry solutions growth in that number.

Speaker Change: <unk> wireless network implementations.

Speaker Change: Iot industry solutions, and just core connectivity.

Speaker Change: That continues to grow.

Speaker Change: Thats helpful on the wireless <unk> side, so I'll pause there.

Speaker Change: Thank you very vanda and thank you everyone for joining US today, please feel free reach out to the IR team with any follow ups and with that Karl back to you.

Karl: Everyone. This concludes the telephone 24 Q3 earnings conference call. Thank you for your participation and have a nice day.

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Karl: Okay.

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Karl: Yes.

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Karl: Okay.

Karl: Yes.

Karl: Sure.

Karl: Okay.

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Karl: Okay.

Karl: Okay.

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Karl: Okay.

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Karl: Okay.

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Karl: Okay.

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Karl: Yes.

Karl: [music].

Speaker Change: Good day and welcome to the <unk> 2024, Q3 earnings Conference call.

Introduce your speaker Mr. Robert Mitchell. Please go ahead.

Speaker Change: Well everyone. Thank you for joining us today, our third quarter 2024 results news release, MD&A financial statements and detailed supplemental investor information were posted to our website earlier this morning.

Speaker Change: On our call today, we will begin with remarks by Darren and Doug for the Q&A.

Speaker Change: David joined by Zeno <unk> Jason.

Speaker Change: Hi.

Speaker Change: Courage sacrifice on.

Speaker Change: Perhaps.

Speaker Change: Yes, Sir.

Okay.

Speaker Change: Tomorrow.

Speaker Change: Yes.

Speaker Change: Thank you Dror.

Speaker Change: Yes.

Speaker Change: Sure.

As we observe filings.

Speaker Change: Filings.

Speaker Change: Sure.

Speaker Change: For now.

Speaker Change: We're just going to take a moment.

Speaker Change: Okay.

Speaker Change: Just carrying on our call today will begin with remarks by Darren and Doug for the Q&A portion will be joined by Zeno Levine and Jason briefly prepared remarks slides and answers to questions contain forward looking statements actual results could vary from these statements and assumptions on which they are based on a share risks could cause them to differ are outlined in our public file.

Speaker Change: Thanks, so much.

Speaker Change: Thanks.

Speaker Change: Our third quarter 2020.

Our annual 2023 MD&A.

Speaker Change: With that over to Darren.

Darren: Thanks, Rocky and Hello, everyone in the third quarter, our teams dedication to operational excellence led to industry, leading financial results and customer growth harnessing, our premier asset portfolio and focused commitment to cost efficiency and operating effectiveness.

Our results demonstrate our ability to deliver sustainable profitable growth anchored by our strategic emphasis on margin accretive customer expansion globally, leading broadband networks and of course, our customer centric culture.

Darren: This enabled industry best total net additions of 347000 customers.

Darren: Our team's passion for delivering customer service excellence once again contributed to industry, leading loyalty across our key product lines.

Notably postpaid mobile phone churn was once again below 1%.

Darren: Furthermore, churn for <unk> branded mobility and home bundled households nationally was also below 1%.

Darren: This showcases the consistent potency of our unmatched bundled product offerings across mobile and home <unk>.

Darren: Our industry, leading customer experience over our industry best pure fiber and wireless broadband networks.

Darren: Looking at our financial results, we achieved solid and resilient third quarter T Chek EBITDA growth of five 6%.

Darren: This reflects the progression of our ongoing transformational efficiency programs, which are clearly bearing fruit.

Let's turn now and take a look at our T Chek mobile results.

Darren: Tell us realized industry, leading third quarter customer growth of 289000 net additions. This included robust mobile phone net additions of 130000, driven alongside our continued focus on profitable margin accretive customer growth.

Darren: Indeed, we are doubling down on our disciplined focus on profitability as we progress through the busy and highly competitive final quarter of the year and into 2025.

By way of example, we strategically chose not to match dilutive offers that we saw in market during the back to school period.

Darren: Our efforts will ensure our mobile customer growth drive sustainable EBITDA and cash flow accretion for our business and for our investors.

Mobile subscriber growth also included strong gains in connected devices with net additions of 159000, reflecting ongoing momentum with respect to our <unk> and Iot <unk> solutions.

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

Darren: Blended mobile phone churn of 109% was up slightly against the backdrop of continued elevated competitive activity, whilst we drove a meaningful improvement over the higher year over year increases seen in the first two quarters of the year.

Although this is not a level of churn at which our team is content. Once again represents an industry best result by a substantial margin versus our peer group.

Notably postpaid mobile phone churn was zero debt, 9% in the quarter as we progress through our 11th consecutive year with a churn rate below 1%.

Darren: This is an outstanding result on a global basis and reflective of the industry best customer experience, our Telus team delivers time and time again for our clients.

Darren: The close on mobile third quarter <unk> was $58 85.

Darren: This was down year over year with a flat rate of decline as compared to the second quarter largely as a result of continued intense promotional market activity that we are familiar with.

Darren: Our team remains focused on driving improved outcomes through multiple levers prospectively.

Darren: These include enhancing our premium bundle offers across mobility and fixed to drive accretive household economics.

Darren: These include optimizing our highly differentiated product portfolio and brand mix.

Darren: These include driving unmatched product development product differentiation and product intensity and these include maintaining our strategic focus on profitable growth and sustainable economics for our business.

Darren: Our flanker brands continue to offer strong customer value in key growth segments, including public mobile with its compelling amp who attributes.

Darren: Through digital transformation, we're meaningfully lowering our cost to serve across the board inclusive of supporting an attractive ample for BYOB and flanker activity.

Furthermore, our growing product intensity now at more than three dot two products per household and growing increases both average revenue and average margin per home, while simultaneously reducing churn.

Darren: Thus, we see sequential benefit as we bundle more fixed and mobility products on a national basis significantly enhancing customer lifetime revenue and the associated economics.

Nor do we believe the team has driven 8% year over year growth in bundled mobile and home households on a national basis.

Darren: These efforts will continue to be supported by our strategic focus on winning and retaining profitable customers whilst remaining highly disciplined in respect of device subsidies.

Darren: Moreover, we continue to expect connected devices and Iot to increasingly contribute to network revenue <unk> and <unk> and seeing that growth at a level of materiality prospectively.

Darren: Our industry, leading customer loyalty and focused on profitable growth allow us to continue delivering industry best mobile phone lifetime revenue, which consistently exceeds our national peers by a considerable margin specifically up to 46% in the third quarter.

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 growth.

Darren: Indeed, our team achieved robust third quarter Internet net additions of 34000.

Darren: <unk> consumers in Western Canada are choosing tell us for our pure fiber superiority, coupled with our customer service excellence, which is sustaining strong growth on a year over year basis.

Darren: By way of example, we drove 17% year over year growth in our one gig plus rate plans as well as compared to one year ago.

Darren: We're also continuing to drive healthy growth in our TV product line with industry, leading net additions of 21000 up slightly on a year over year basis.

Darren: Additionally, modest residential voice losses of 9000 were relatively flat year over year and again represented an industry best result, compared to our national peers by a notably wide margin.

Security net additions of 12000 continue to reflect our successful multi product penetration strategy, although down year over year, largely due to an emphasis on loading higher value customers ahead of the transition to our accretive proprietary platform.

Darren: Overall, our external fixed net addition of 58000 again represented an industry, leading third quarter result for the Telus organization by again, a notable margin.

This demonstrates the strength of our unique and highly attractive bundled offers across our unmatched portfolio of products and services in combination with our superior customer experience over our ever expanding pure fiber network.

Darren: The magnitude of fixed results, we are delivering illustrates the return we're getting on transformational investments in our pure fiber network, which will continue to flow for decades to come given the longitudinal characteristics of this highly valuable asset.

Darren: This will be further enhanced by a continued significant innovation on our differentiated product roadmap, where we have multiple service bundling options available with our proven fiber strategy.

Darren: The foundation for this is the first device agnostic smart home platform, which tell US has built leveraging new Iot services and close partnership with AWS as well as the development skills and capacity of our Telus digital team.

Darren: This platform enables our entry into new verticals as evidenced by the two new products, we launched in the third quarter.

Darren: Notably our consumer energy management service tell us smart energy will save Canadians money, whilst reducing their environmental footprint.

Also launched Telus home view, the next step in our home security automation, allowing customers to monitor their home on our tellers app and maintain their safety and privacy leveraging AI.

Our platform will also enable the enhanced integration of existing capabilities, such as health and wellness, whilst at the same time driving meaningful cost to serve improvements as well as licensing savings and revenues.

Darren: Our product development differentiated service portfolio and product intensity, driven by leading data and AI capabilities not only positions us for growth, but they also help Canadian save money and an affordability challenged environment.

Darren: Looking forward this integrated product portfolio will further solidify our product intensity leadership and present, new revenue sources that are highly differentiated from our competitive peer group.

Darren: Indeed, our product roadmap is national in scope unlocking new opportunities for bundled growth nationally, particularly alongside expanded fiber access as well as international revenues by our licensing agreements with worldwide telecommunications companies.

Darren: Let's turn now and look at tell us business solutions, or TBS, which once again delivered a strong quarter of growth across all lines of business.

Darren: Our team drove continued success in private wireless networks, including a large multi site deployment that went live in the third quarter supporting advanced applications and operational effectiveness.

Darren: Our intense cross sell program across <unk> business, Telus health, Telus, agriculture, and consumer goods and Telus digital continues to resonate strongly as we increasingly bring the full power of tell us that customers across the globe.

Darren: Year to date, we've closed over $40 million and cross functional sales with a robust and growing sales funnel of over $300 million in opportunities.

Darren: Importantly, we achieved a strong quarter within our Iot portfolio delivering double digit year over year growth in Iot revenue driven by strong growth from our emerging private wireless network connected worker and intelligent spaces solutions.

Darren: Notably reflective of our strong customers first culture, our industry, leading networks, our digital capabilities in AI leadership powered by Dell <unk> digital our national business team achieved industry best loyalty results in Q3, our lead which we have made.

Darren: <unk> for nine consecutive quarters now.

Darren: Looking at Telus health, our team drove revenue growth of 4% as strategic investments in our products, our sales and distribution channels generate strong momentum across our health portfolio.

Darren: Sales bookings across key Telus health growth growth portfolios are up meaningfully on a year to date basis, including being up by 32% and employer solutions, 84% and payer and provider solutions and almost twofold within our healthcare digital <unk>.

Darren: <unk>.

Darren: This indeed does bode well for future revenue growth and expansion at a super normal level the.

Darren: The growth in these areas not only drives global scale for us, but also represent some of our most profitable domestic lines of business.

Darren: Moreover, in the third quarter, our team achieved 50% EBITDA contribution growth within Telus health supported by higher revenue and the realization of $331 million in combined annualized synergies since acquiring <unk> in 2012.

Darren: <unk> two.

Darren: This includes $277 million in cost synergies and $54 million in growing and cross selling as we work towards our overall objective of delivering $427 million in synergies by the end of 2025.

Darren: Our strong performance at Telus Health also includes driving a 9% year over year increase in global lives covered up to now $76 million.

Darren: Performance includes supporting health outcomes, and nearly $162 million digital health transactions during the third quarter alone up more than 7% over the same period a year ago.

And the strong performance at Telus Health includes increasing our virtual care membership the six and 5 million clients up more than 18% over the prior year.

Darren: Similarly, within Telus, agriculture, and consumer goods or Tac, we continued to see positive outcomes as we strengthen our market position.

Darren: On the back of record sales performance over the past four quarters. The team delivered year over year revenue growth of more than 20% across our Telus agriculture, and consumer goods business and bookings growth of 65% on a year to date basis.

Darren: Notably this was alongside strong profitability and margin contribution with tax EBITDA contribution being up over 100% relative to the same period a year ago.

Darren: Our commitment to maximizing the full potential of our distinctive global businesses is underscored by leveraging the expertise experience and high performance culture of our broader Telus team.

Darren: Importantly, this includes capitalizing on significant and highly differentiated cross selling opportunities across all of our <unk> businesses, demonstrating the collective talent and effectiveness of our team in driving our combined success.

Darren: Turning to Telus digital which also reported its third quarter results earlier today, the team delivered stable financial performance compared to the prior quarter signifying a positive step on a recovery trajectory, we remain eager to drive further improvements as we advance our growth objectives.

Darren: <unk>.

Darren: Indeed, Telus digital is comprehensive and growing suite of leading AI solutions continues to demonstrate strong and encouraging momentum.

Darren: This includes capturing new client engagements and broader recognition in the market exemplifying our progress in next generation technology applications.

Darren: Moreover, the strength of <unk> digital transformational generative AI powered solutions and tools created for all lines of business at Telus continues to enhance their go to market efforts with new and prospective clients.

Darren: As we continue progressing our own digital transformation journey. It offers a unique opportunity for Telus digital deleverage tell us as an innovation lab, which they in turn can exploit as a meaningful reference case for the product Ization of solutions.

Darren: With their external clients.

Darren: Our confidence in <unk> digital's fundamental drivers of value creation remains strong, particularly given the company's leadership in key areas, including trust and safety safety, including the digitization of its own and its clients customer experience operations, including <unk>.

Darren: And our unique set of tech focused growth assets.

Darren: And it includes the broader evolution of its business towards at technology centric model with the attendant value creation opportunities.

Importantly, we see tellers digital under the capable leadership of Jason and to be as creating positive momentum for its medium and long term growth aspirations.

Darren: In a moment, Doug will provide further commentary about T. Jack Entellus Digital's results.

Darren: In closing the industry, leading customer growth. We continue to report is underpinned by our dedicated team who passionately deliver superior service offerings and digital capabilities over our world, leading wireless and fiber networks.

Darren: The significant broadband network investments, we've made are enabling a resilient EBITDA growth, they're enabling the ongoing monetization of pure fiber and <unk> that are enabling the financial and strategic benefits of copper decommissioning, they're enabling an intense strategic focus on efficiency enhancements.

Darren: And notably Theyre, delivering revenue and profit progression and Telus health and Telus agriculture and consumer goods.

Darren: They also underpin the long term sustainability of our industry, leading dividend growth program the.

The 7% year over year dividend increase announced today represents the 27th increase since we initiated our multiyear dividend growth program in 2011 2011 now in its 14th year.

Speaker Change: Since 2004, Telus has returned more than $26 billion to shareholders, including over $21 billion in dividends, representing approximately $18 per share.

Speaker Change: 14 years since 2011.

And counting the Telus team is intensely focused on what's next including evolving our product roadmap on a national basis with innovative customer centric offerings in the months and quarters ahead. This will drive further significant differentiation and meaningful revenue.

Speaker Change: Growth opportunities and importantly, buttress the continued advancement of our financial and operational performance and the continuation of our robust dividend growth model prospectively.

Speaker Change: Finally <unk>.

Speaker Change: Demonstrating our organization's longstanding belief in the symbiotic relationship between doing well in business and doing good in the global communities, where our team members live work and serve last month, we celebrated the one year anniversary of the tellers student Bursaries.

Speaker Change: Through the <unk> certain sutent bursaries, we're creating the circumstances necessary to empower young people in Canada to realize their full potential.

Speaker Change: In addition to being the largest burst refund in the country that tell US student Bursaries is also unique because of its focus on future leaders, who are volunteering in their communities and driving essential social innovation.

Speaker Change: Since the inception of the Bursaries program that <unk> future Foundation has provided over $4 million to nearly 1000 students.

Speaker Change: 1000 students the talent of the future for community centric organizations like tell US now that's investing for future growth.

Doug Carl: Myself and our entire leadership team remained exceedingly grateful for our team's passionate efforts to support our global communities as we strive to deliver outstanding results for all of our stakeholders and on that note I will turn the call over to uncle, Doug Doug over to you. Thank you Darren and Hello, everyone.

Doug Carl: Mobile network revenue growth of 7% was driven by mobile phone and connected device subscriber additions, partially offset by lower mobile phone <unk>, which declined by $3, 4% consistent with Q2.

Doug Carl: Lower <unk> as a result of ongoing impact from the competitive pricing environment, including lower roaming from the adoption of unlimited roaming plans. This.

Doug Carl: This was partially offset by higher <unk>.

Revenue growth our strategy continues to focus on strong subscriber economics and profitable growth our ongoing focus for cost efficiency as demonstrated by the increase in our restructuring assumption to approximately $450 million will help offset industry pricing pressures and allow us.

Doug Carl: To reinvest into the growth of our business and product development.

Doug Carl: These investments will support sustainable EBITDA growth margin expansion and cash flow generation in the quarters and years ahead.

Doug Carl: Fixed data service revenue grew by one 9% year over year improving.

Doug Carl: <unk> quarter over quarter. This growth was driven by strong customer net additions of 67000 across our superior product portfolio, a pure fiber internet TV and security and home automation as well as <unk> growth. This was partially offset by lower television revenue per customer as custom.

<unk> continued to evolve their entertainment packages, along with technology substitution, including the strong adoption of our national stream plus offering.

Doug Carl: At a segment level <unk> operating revenues were up one 9% driven by mobile network mobile equipment fixed data services as well as health and agriculture services revenue, notably other income of $54 million in the quarter increased by $36 million year over year, largely due to gains from.

Doug Carl: The active real estate projects that we have in front of us, resulting from our pure fiber and associated copper decommissioning program.

Doug Carl: We anticipate these gains to continue in the quarters ahead, as we execute against our multiyear real estate development strategy and decommissioning programs as we move more and more of our customers to fiber.

Doug Carl: <unk> adjusted EBITDA increased by five 6% and adjusted margin expanded by 110 basis points to 39% as a result of our focus on profitable loading customer service and product intensity and our cost efficiency programs.

Doug Carl: Tell us digital segment continued to see some challenges in the macroeconomic environment and associated pricing pressures, but led to declining revenues about $4, 4% year over year.

However, this result reflects digital's ability to partially offset these pressures with growth from services provided to our existing customers new clients added over the past 12 months when including the intersegment revenue with tell US operating revenue was up almost 1% demonstrating our strong and unique relationship with <unk> digital.

Doug Carl: Which is creating mutual beneficial opportunities and underscores the crucial role in driving our customer leadership and digital transformation.

Doug Carl: This includes the implementation of our Gen AI applications across all levels of our organization driving further efficiencies and growth opportunities.

Doug Carl: This digital adjusted EBITDA was down 30% driven by customer margin pressure with higher investments in the commercial sales team operational effectiveness programs as well as investments in <unk> product development.

Doug Carl: Additionally, the year over year comparison reflects an increase in share based compensation, primarily due to the timing of award grants higher expenses from the awards granted in relation to previous acquisitions.

Doug Carl: Overall stabilization entellus digital's results compared to the prior quarter sure where they are on target to achieve their full year outlook as provided in August on a consolidated basis tell us overall operating revenues increased by 1% year over year and adjusted EBITDA increased by $1 three.

Doug Carl: Adjusted EBITDA margin was 36% and was stable as strong <unk> margin was partially offset with <unk> digital.

Doug Carl: Net consolidated income increased by 80% year over year, while basic EPS was higher by 111% on adjusted basis, net income and EPS were higher by 11% and 12% respectively.

Doug Carl: Strong growth was driven by higher adjusted EBITDA and declining depreciation and amortization, partially offset by higher financing costs in the quarter financing costs were higher from the impact of the noncash unrealized changes to the forward element of our virtual purchase power agreements.

As well as increased long term debt and higher interest rates.

Doug Carl: Free cash flow of $561 million was higher by $206 million or 58% driven by lower restructuring disbursements and lower capex.

Doug Carl: Consolidated capex declined by $101 million or 13%.

Doug Carl: Primarily driven by our planned capex reductions.

Doug Carl: Consolidated Capex intensity was 13% down 200 basis points over Q3 last year.

Doug Carl: Today, we updated our <unk> financial target for operating revenue, which are now at which we now expect to be slightly below the lower end of our original target range, while remaining above the.

Doug Carl: The current average of analyst consensus estimates.

This updated outlook both from both the competitive market conditions and our team's focus on operational execution.

Doug Carl: Importantly, our <unk> adjusted EBITDA, along with our consolidated targets for capital expenditures and free cash flow remain unchanged as previously communicated in our Q2 results in August.

<unk> remained confident in our ability to continue generating strong and growing cash flow for the years ahead, driven by ongoing EBITDA growth and moderating capex intensity.

Doug Carl: This will support our strong balance sheet to provide us ample flexibility to support our growth ambitions and shareholder returns at the end of the third quarter, we had approximately $3 2 billion of available liquidity our average cost.

Doug Carl: Long term debt was approximately $4, 4% and the term to maturity of long term debt was $10 six years and our net debt to EBITDA ratio of 383 times.

Doug Carl: As a reminder, the acquisition of wireless spectrum licenses in the recent years is increase that ratio by zero about five six times.

Doug Carl: As we progressed into future years, we anticipate our leverage ratio to improve as we work towards our target ratio through continued EBITDA growth declining capital intensity asset monetization, including real estate and copper and operating free cash flow expansion as we continue to support our capital.

Allocation priorities, including long term sustainability of our dividend and cash flow growth Robert back to you.

Robert Mitchell: Thanks, Doug Carl we're ready for questions. Please.

Carl: For anyone on the phone if you'd like to queue up to ask a question at this time, please dial star one on your phone's keypad.

Speaker Change: The first question is from drew Mcreynolds from RBC. Please go ahead drew.

Yes, thanks very much.

Speaker Change: Good afternoon or good morning.

I'm going to keep my question that.

A big picture one.

Speaker Change: 2024, obviously has been a tough.

Speaker Change: Year for the for the industry and the <unk> kind of gone out a little bit here.

If you step back and.

Speaker Change: Darin.

Speaker Change: Kind of watch the evolution of telephone fiber bundling product intensity.

Speaker Change: Two public mobile digitization customer experience. Thank you.

Speaker Change: Everyone can agree you've been ahead of the curve here. So when you describe what's next.

Speaker Change: It's kind of interesting to see what that playbook looks like so my question is.

Speaker Change: And it's a question that all investors are asking right. Now is just what is really the revenue growth potential here for the industry.

Speaker Change: So I'm just wondering from <unk> perspective, what that outlook looks like and if you could kind of put it into two buckets, one would be the outlook for the traditional core telecom business.

Speaker Change: Let's say just core wireline and wireless.

Speaker Change: And then can you give us a sense of then the second bucket, which is all of the new revenue streams and initiatives you've put in place. Thank you.

Speaker Change: Okay.

Speaker Change: Thank you for that.

Speaker Change: Fastball down the middle of the plate drew to get things kicked.

Speaker Change: Kicked off here.

Speaker Change: I'll do my best Firstly in terms of <unk>.

Investing and getting returns.

Speaker Change: From investing.

Speaker Change: We really are focused on a pecking order trifecta of.

Speaker Change: Harvesting the fruits of our labor too.

Speaker Change: Improve our balance sheet prospectively.

Speaker Change: That's a super smart thing to do because the attendant economics arent just good for debtholders. There will also be good for our equity holders.

Speaker Change: Secondly for us we.

Speaker Change: I think there are still very attractive areas to invest in our business and I'll I'll speak about those in just a moment and I think they will hit your question head on.

Speaker Change: And then thirdly as has been a long term hallmark of our organization when we execute on our investments and we derive our returns we make sure that our investors participate in those returns and so returning.

Speaker Change: The fruits of our labor to our shareholders via the continuation of our dividend growth model is something that is near and dear to our hearts.

Speaker Change: In terms of growth across the two buckets that you've articulated we still see significant opportunities with what we're doing on fiber and <unk> at both the revenue growth level, but also at the cost efficiency level as well, we have a ton of opera.

Speaker Change: Community in terms of revenue growth just on product intensity.

Speaker Change: Ross selling alone.

Speaker Change: I frequently Todd Shai the team would tell us that.

Speaker Change: We should be able to grow EBITDA at 5% without bringing on a single new customer such as the opportunity for cross product pollination within our existing customer base. So that opportunity is material if not voluminous.

Speaker Change: I think one of the things that massively differentiates our organization is what we're doing on new product and platform development, creating new RG use for the organization I think when you're spending billions and billions of dollars on fiber and <unk>.

Speaker Change: You have a fiduciary responsibility to exact economies of scope bump those infrastructure investments and the significant new product and platform developments that are taking place on a b to C and b to B basis.

Speaker Change: Our huge for this organization and they also give us a level of diversification.

From certain core areas, where we've seen price commoditization and margin compression from the competitive intensity. We liked the thought of developing products that our competitors don't have and there is a long long roadmap of opportunities from smart home automation to <unk> commercialization and product <unk>.

Speaker Change: <unk>.

Speaker Change: We still think there is significant opportunity for us on the national expansion front and international as it relates to some of the SaaS services that we're now selling and penetration opportunities in a number of key markets from consumer to small and medium business.

We're very excited about our emerging growth businesses I'd tell us health until its agriculture and consumer goods.

Speaker Change: I think what you've seen in terms of our third quarter performance within health and agriculture, and consumer goods bodes well for what you can expect into the future.

Speaker Change: It relates to sales growth being translated into revenue growth being translated into EBITDA growth being translated into cash flow generation.

Speaker Change: And when you couple that with an improving trajectory in terms of the recovery path for Telus Digital who is also aiding and abetting what Telus is doing in its own digital transformation.

Speaker Change: There is a lot of opportunity there and of course that opportunity is on a global basis. So yes domestic but these are big big markets on a global basis for us to pursue and I like the way that we're positioned in those industries in terms of the asset collection that we have and where we're positioned at the <unk>.

Speaker Change: Key pivot points.

Speaker Change: Although it doesn't get talked about a lot. We're also investing on the cost efficiency side. So we want to see the the bias of EBITDA accretion coming from revenue generation, but we always want to see EBITDA also benefiting from constant improvements in cost efficiency and we still have lots of <unk>.

Speaker Change: Room for improvement in terms of the efficiency of our operations with leveraging our digital and growing.

Speaker Change: Leading growing and leading AI capabilities that are very exciting for us on both CX and on a go to market basis.

Speaker Change: We're also investing in monetization opportunities.

Speaker Change: What we're talking about and Doug alluded to this but on real estate monetization.

Speaker Change: Copper mining recycling and monetization those are opportunities that are not just recurring.

Speaker Change: Those are longitudinal opportunities over the longer term for this organization and we'd like to say that there is a byproduct of the gift that just keeps on giving which is our fiber infrastructure in our expanding footprint and.

Speaker Change: And of course, we also as it relates to the emerging businesses that I've just talked about we've got perspective monetization opportunities in terms of growing health and AG and consumer goods on either a partnership path.

Speaker Change: Into the future as it relates to monetization or prospectively successful ipos are a combination of.

Speaker Change: And one of the things that I think is missing when you look at all of those areas for revenue accretion on a robust basis, a sustained basis and on a quality of revenue and earnings basis Theres. One other thing that get gets missed is that.

Speaker Change: Chelsea is an organization that's undergoing.

Speaker Change: The most significant transformation and its in its history.

Speaker Change: Digital transformation would tell us that.

Cloud of vacation tell us and the evolution of our product portfolio to be one of a SaaS construct.

Speaker Change: In combination with the pervasiveness of our wideband fiber infrastructure is allowing us to drive down our capital intensity to the 10% zone.

Speaker Change: I think when you take those two buckets in answering your question in terms of profitable revenue growth and combined them with the factors that are getting us down to a ci of circa 10%.

Speaker Change: I think we're going to be earning our way to an elevation in our valuation multiple.

That's great. Thank you Dan for all that.

Karl: Thanks True Karl next question please.

True Karl: The next question is from Vince Valentini from TD Securities. Please go ahead Vince.

Vince Valentini: Hey, thanks very much.

Vince Valentini: I have a different question, but I just wanted given everything you just said there Darren can I wrap that up with one final point.

Vince Valentini: If you have so much opportunity in front of you and Youre getting capex down to 10%.

Vince Valentini: Is there any reason you shouldnt keep growing your dividend, 7% and you grow it for 7% per year is when when you were spending a lot more capex in that and had to borrow a bit. So if you can level set us on that final piece of the puzzle you. Just you just said and then more technical question for Doug If I could.

<unk>.

Vince Valentini: $36 million for real estate.

Can you just revise exactly how that works. This is just you've sold some of the initial chunk of real estate and every time you do a sale its going to count as revenue is that a 100% flowing to EBITDA or any cost associated with that that'd be great. Thanks.

Speaker Change: So a direct answer to your question Vince No reason.

Doug Carl: Doug over to you.

On the real estate side, what Youre seeing is really 50% of the gain of those properties. So.

Speaker Change: We are moving them into partnerships, where our partners, bringing in cash so.

Speaker Change: We're in essence, selling 50% of the property upfront and then once developed and put into commercial we would recognize the other 50% of the gain and then any income that comes from it concurrently so you're building an asset of consequence.

Speaker Change: And it's accumulating across the board as we speak so.

Speaker Change: <unk> building of our portfolio.

Speaker Change: B no incremental cash to us to develop it and to complete that cycle.

Speaker Change: And we consider continue to see the benefits of this for many years to come.

Speaker Change: Long term recurring with another shoe to fall on a positive basis absolutely.

Speaker Change: Sure.

Speaker Change: So when you book the 50%.

Sale as revenue is there any cost associated with it or is it 36.

Speaker Change: After the cost base of the land was at the time.

Of the land we've owned for many many years so the cost base is relatively low.

Speaker Change: Okay. Thank you.

Speaker Change: Thanks, Karl next question please.

Speaker Change: The next question is from Stephanie price from CIBC. Please go ahead Stephanie.

Stephanie Price: Hi, good morning.

Stephanie Price: <unk> been engaging in divestitures and structured transactions as I take a look at the balance sheet.

Speaker Change: Good afternoon, just wondering pillows or thinking about or how do you think about.

Speaker Change: Noncore assets here.

Speaker Change: Yes.

Speaker Change: So we will.

Speaker Change: Obviously looked at noncore assets from our perspective.

Speaker Change: The gift that keeps on giving with fiber on by around real estate and copper as Darren highlighted we have also done small divestitures of business lines that arent in our long term strategic view.

Speaker Change: And with our fiduciary responsibility will continue to look at other monetization opportunities as we as we delever over time.

Speaker Change: But in addition, they are just the cash flow generation and Capex reductions all of those will contribute to a stronger balance sheet.

And we will continue to monitor what is best for our organization moving forward.

And then just on the restructuring it looks like you've brought the cost up a little bit I think it looks like you're supposed to be completed this quarter.

Speaker Change: Just curious how we should think about the margin cadence for the remainder of the year and if you see any additional opportunities for efficiency.

Speaker Change: The restructuring overall, I'd argue and Darren points on Digitization and opportunities to continue to rationalize our cost structure will probably won't be over for a very long time.

Speaker Change: So what we've identified as more opportunity that as we buy.

Speaker Change: Bound more digital found more automation.

Speaker Change: We're continuing to reduce our cost structure concurrently.

Speaker Change: And so I would say that's what we're seeing the cash from that is primarily going to hit US next year on an outlay very little within year.

Speaker Change: And the benefits benefits from that will most likely be a Q1 is where youll see them start.

Speaker Change: I think it's notable how proactive and preemptive we've been with our cost efficiency programs that tell us dating back to 2023 and seen those.

Stephanie Price: Stephanie continue.

Stephanie Price: Into 2024.

Stephanie Price: So that we're trying to get ahead of market condition conditions on anticipatory basis, and which is why we've taken our workforce restructuring charge up too.

Stephanie Price: $450 million for the 2024 year.

Stephanie Price: We are continuing to be aggressive in leveraging our digital transformation leadership, which is a real a real hallmark of our success and we've got a market leadership, there so we need to lean into it.

Stephanie Price: And tell US digital has been a huge asset for us and a unique asset. This is not something that our peers have and the skills and development capabilities that they are bringing to support the digital transformation of Telus and the AI tool set that we're using to <unk>.

Prove the efficiency of our CX and go to market operations.

Stephanie Price: Material in.

In nature, and then you can see.

Stephanie Price: These activities to give you some examples.

Stephanie Price: In terms of what's happening within the guts of our organization.

Stephanie Price: We talked about fiber and $3 two plus products per fiber household then.

Stephanie Price: That's great and we talked about it in terms of bandwidth differentiation and cemetery differentiation, but one of the most important aspects of our pervasive fiber network is that the unit cost to serve is 30% lower than what it was under copper.

Stephanie Price: And so to get the economics of copper decommissioning and.

Stephanie Price: And then get an exposure to a 30% unit cost to serve improvement with fiber.

Stephanie Price: Is it a pretty potent combination look at what we're doing now at the Abu level with our digital pure play offering with public mobile I think it's indicative of the orientation.

Stephanie Price: Our.

Stephanie Price: Our cost efficiency it doesn't get talked about a lot.

Stephanie Price: Because it's very much focused back to drews question on revenue and growth, but the platforms that we're building at <unk>.

Stephanie Price: Tell us on a proprietary basis gives us substantial improvements in our cost structure. So when you think about what we're doing on our proprietary television platform a significant improvement in our cost structure, what we're doing on smart home security on our platform significant improvement in our cost structure.

Stephanie Price: What we're doing with Amazon on Smart home automation significant improvement in our cost structure.

Stephanie Price: And then finally back to the comments I made earlier.

Stephanie Price: The evolution to more of a SaaS product construct.

Provides not just significant profit efficiencies in terms of cost, but cash efficiencies because of the lower capital revenues associated with them and also our ability not just to deploy them domestically, but to export them internationally on a licensing basis and so.

I think thats and.

Stephanie Price: And I could go deeper on the cost story, but hopefully thats indicative for you.

Speaker Change: Great. Thank you for the color.

Speaker Change: Thank you Stephanie next question please Carl.

Carl: Next question is from Mayer Yaghi from Scotiabank. Please go ahead.

Speaker Change: Yeah.

Speaker Change: Great. Thank you for taking my question.

Speaker Change: Listening to your prepared remarks.

Speaker Change: We get a clear sign that you still see.

We expect topline and Bottomline growth in your telecom business into the future, but how are you approaching your asset portfolio as a whole do you see a need to change your capital allocation.

Speaker Change: Or amplify investments and then you have your non telecom businesses to offset pressures on on your telecom business and second question I was hoping if you can provide some visibility on your wireless loading.

Speaker Change: We have seen a significant increase in prepaid loading at your peers was it also as visible in your operations this quarter and how do you approach. This.

Speaker Change: Trend from long term lifetime customer value or lifetime customer profitability point of view.

Speaker Change: Yes.

Speaker Change: Okay why don't we just take a break from me drawing on.

Speaker Change: I'll answer the first part of your question lost Zeno.

Why don't I give you an opportunity here to lean in on the prepaid front and then.

Speaker Change: I'll close off with capital allocation within our non telecom businesses, although I would call them telecom extension businesses, but I'll get back to that in a second Zane I'll over to you.

Speaker Change: Thanks for the question.

Speaker Change: I would say that we have seen a pretty significant shift across our peer group as you mentioned from.

Speaker Change: Prepaid mix perspective, what I wanted to highlight though is that our mix has been really consistent quarter over quarter and into 24. So we don't disclose the exact mix, but I can tell you that in Q3 and with it with quite consistent I think the other thing that as we've highlighted is.

Speaker Change: We have seen really great ampoule characteristics.

With respect to our public mobile platform and continue to see that as a great lever with respect to you that managing the new dynamics in the industry and then I think it's also important to highlight that the opportunity is to really focus on the lifecycle management of the customer.

Speaker Change: From a pre to post perspective.

Speaker Change: That's something that you can see in our retention.

Speaker Change: Dave here and continue to see in terms of why we're continuing to gain share in those prepaid segments of the market and I think that fundamentally.

Speaker Change: What we are going to be folks focused on is the absolute most optimal mix from both a revenue growth perspective, as well as an ampoule and household ARPA perspective.

Speaker Change: So that that I think is relatively consistent with respect to our execution in terms of what you've seen on bundling what <unk> seen on retention and what you've seen on the overall EBITDA performance of the organization.

Speaker Change: Okay.

Speaker Change: Okay.

Let me try and go from general specific cure I think again, it's important to highlight the trifecta pecking order in terms of capital allocation to specifically address the question.

Speaker Change: That pecking order is to use proceeds to.

Speaker Change: Bolster the balance sheet, we really do think that that would be synergistic for both debt and equity holders and position us well prospectively.

Speaker Change: You've heard me talk about the next step in the pecking order, which we are continuing to be excited by the investment opportunities in the business both telecom and.

Speaker Change: Our non telecom.

Speaker Change: And thirdly, we remain committed to returning the money.

That we achieved through the successful execution of our investments.

Speaker Change: The sustainability materiality of our dividend growth model.

Speaker Change: Second point here is.

The telecom non telecom delineation is.

Speaker Change: Erroneous way to look at portfolio management tell us what we're doing.

Speaker Change: Telus Health Telus agriculture.

Speaker Change: In consumer goods and <unk> digital.

Speaker Change: These are all data strategies.

Speaker Change: The strategy for our telecom business prospectively is a data strategy from data analytics to data insights data monetization aided and abetted by voluminous data coming off the back of our wideband fiber and <unk> networks or health play is.

Speaker Change: The data play our AG play is a data play our consumer goods play is a data play its the extensibility of that orientation from telecom in terms of where we're taking data across that analytics insights and monetization continuum into areas that we think are exciting for <unk>.

Speaker Change: On health Agriculture, and consumer goods and if you look at the intersection point. It goes it goes beyond data.

Speaker Change: You can see intersection points on network and connectivity.

These are areas on health agriculture, and consumer goods that we think are ripe for digital transformation and the profit attendant with that.

Speaker Change: Our global scale and we're excited by that small market share gains have huge nominal economics associated with them.

Speaker Change: I have not benefited from customer service excellence and how much of my prepared remarks today, we're all about customer service excellence loyalty and retention, we want to bring our game plan on customer service excellence.

Speaker Change: Agriculture, and consumer goods look at the number of intersection point between help AG consumer goods and the traditional telecommunications business, whether it's at the data layer at the device layer at the broadband connectivity layer at the workforce productivity layer. If you think about <unk>.

Speaker Change: And applications.

Speaker Change: Lastly, they fit well culturally with us in terms of the social purpose thesis.

Speaker Change: And then as it relates to capital allocation specifically.

Speaker Change: Let me try and put this in a simple and clear way as it relates to capital allocation prospect of lease for health agriculture, and consumer goods. The past is prologue. So what you've seen us doing through 'twenty three 'twenty four is indicative of what you can.

Speaker Change: In terms of capital allocation prospectively for the business.

Speaker Change: You can see these businesses getting stronger and stronger we talked about it in terms of sales generation.

It is now manifesting itself in terms of revenue growth and we're seeing the wash through to the EBITDA level.

And that organic foundation is key because anything that we do on an M&A basis, we want to earn that through strong organic growth. If we've got strong organic growth will make better M&A decisions and we will do better at post acquisition integration and these M&A.

Moves by and large back to the past deemed prologue are more tuck in acquisitions.

Speaker Change: Phil product gaps or geo coverage gaps.

Speaker Change: Please the overall jigsaw puzzle for the organization.

Speaker Change: And creating the asset composite that we think we need.

To win along the way.

Speaker Change: This amount of capital allocation still fits within the overall capital capital intensity envelope at a portfolio level, so investing to support the growth in health and AG and consumer goods.

Speaker Change: He is not going to defray or be diluted to getting our capex intensity down into that 10% 11% zone.

Speaker Change: Are mutually inclusive.

Speaker Change: In that regard and I think we're excited by that and then prospectively getting that right combination of organic execution and smart precision shopping and ingestion of M&A activities, we want to again earn the way to bring in.

Speaker Change: Partnership maybe following the model that we did previously with Telus digital or an IPO.

Speaker Change: And the efficacy of the IPO back to capital allocation is that it gives us a transaction currency to consider moves on an addressable market basis that are more ambitious prospectively than what we have been historically within the confines of our own balance sheet and so I would hope.

That will give you all the parameters that you would be looking for on that question.

Very clear thank you Darren.

Thanks, Matt next question please.

Speaker Change: The next question is from <unk> <unk> from <unk>. Please go ahead.

Speaker Change: Hi, Thanks for taking my questions.

Speaker Change: First a clarification Darrin on your answer to <unk> question.

Speaker Change: Maybe I didn't understand right, but I think you said you think the business should be able to generate EBITDA growth of 5% before having a single new customer on board.

Speaker Change: I think we can all agree that you are going to have additional customers in the future. So are you guiding for more than 5% EBITDA growth in the future annually.

Speaker Change: So we can watch for that when we go live in February.

Speaker Change: Number number one number two the specifics of what I said as I frequently.

Speaker Change: <unk> the team that we should be able to generate 5% EBITDA growth just cross selling our products, what I call cross product pollination within our existing client base, such is the materiality or magnitude of that opportunity on the consumer.

Speaker Change: <unk> and on B to B as well and I think the entire team would say there is a hell of a lot of opportunity here for profitable revenue growth in that regard.

That is not an edict to Taco Bell.

Speaker Change #100: New customers.

Speaker Change #100: We will be looking to do both I'm, just making a point that the opportunity on the product intensity upfront.

Is salivating and.

As a responsible management team, we should go out and do that and the reason why I push hard on that is that I think our first responsibility is to sweat the assets on the money that we've already spent which is why I made the comment about getting better economies of scope on fiber and <unk>.

Speaker Change #100: <unk> sweat those assets, we've already deployed the infrastructure, we already have the customer relationship. It's a warm relationship it's easier to sell a new product to an existing customer than a new product to a new customer and so less leverage those more attractive economics, along the way and then not only do we get more revenue from that.

Speaker Change #100: Customer, but the relationship gets stickier, so it lowers the churn which improves the overall lifetime value.

Speaker Change #100: We are going to do that and yes at the same time go out and hunt for new relationships that can.

Speaker Change #100: <unk>.

Speaker Change #100: Client portfolio that we already have so it's the duality of both and you can stay tuned for what the future holds when we when we give our 2025 guidance when the time comes but thanks for the question.

Looking forward to it thank you.

Speaker Change #101: Thanks, Jerome Carl we have time for one more question. Please.

Speaker Change #101: Yeah.

Speaker Change #102: The question is from <unk> <unk> from Canaccord Genuity. Please go ahead.

Thanks for squeezing me in two from me first of all on wireline.

Obviously, starting to see a little bit of a rebound there in the fixed data services number.

Speaker Change #102: Going up to 2% and obviously the broadband.

Speaker Change #103: Sub loading has been positive as well how should we think about this line item going forward.

Particularly in the backdrop of competitive conditions in the west and maybe maybe.

Speaker Change #103: Maybe just an update on <unk>.

Speaker Change #103: Those conditions and does pricing promotions there.

Speaker Change #103: And secondly, maybe a little bit more of a specific question on wireless <unk>.

Speaker Change #103: When you think about the <unk> pressure, we obviously focus on the single ARPA number but.

There is naturally a number of cohorts there there could be.

Speaker Change #103: Chunk of customers at 70 to 80 $90. When you think about the degradation in <unk>.

Speaker Change #103: Whats the construct of that is it sort of maybe the.

Speaker Change #103: Cohort that's below the average going even lower or are you seeing chunks of the upstairs.

Speaker Change #103: Tears, perhaps also revising I realize that's a bit of a specific question. So maybe just a general answer that would help thank you.

Speaker Change #103: Okay.

Speaker Change #104: What I'll do on on this one.

As Zane I'll ask you to speak to fix.

Speaker Change #105: Fixed data growth and what we're doing there prospectively.

Speaker Change #106: The revenue and profitability line as well as on the on the wireless ARPA fronts, but naveen.

Speaker Change #107: Because it frequently gets forgotten to supplement Daniel's answer on both questions with the beta be view.

Speaker Change #107: <unk> within the SMB area.

Speaker Change #108: Then over to you.

Thanks, Darren Thanks for the question I think you've definitely seen from us overall, a level of consistency as he's been consistency with respect to our growth on subscribers on the wireline side, you've seen consistency with respect to our revenue growth and our goal is to continue driving that consistency.

Speaker Change #108: As well as continuing to drive growth.

Speaker Change #108: Aaron talk a lot about our product intensity thesis and some of the new exciting product that we're bringing to market to answer your question specifically on the competitive side, we're absolutely continuing to see the competitive pressure.

Was more intense than bleeding from wireless into wireline and we continue to see that but we've seen our retention capability stays strong and our product intensity continue to grow and I think we've also seen pretty strong uptake both in our mobile in home subscriber growth as Darren highlighted.

Speaker Change #108: But as well in our ability to drive step ups and get customers higher speeds and higher capabilities and of course that superiority that is very unique to us maybe the final point I'll make though on the wireline side is that with the opportunity to drive scale economics with the continuation.

Speaker Change #108: Growth in our fiber footprint and growth in our fiber loading and with our product intensity. There is also a significant ampoule economic thesis there that we're continuing to pursue.

Think that customers are looking really for more simplification and more seamless experience in terms of how they interact with us and other providers and we want to be on the leading edge of providing those capabilities from a digitization and customer first experience perspective, and so I think there is some material growth opportunity ahead.

Speaker Change #108: On both that cost basis, but on a customer experience improvement thesis.

With respect to your question on <unk>.

Speaker Change #108: Definitely a very dynamic environment, and we continue to see different dynamics emerge sort of quarter over quarter I think based on the results that we have all communicated in the last couple of weeks you definitely see the aggression and where the <unk> dilution is coming from and you've seen us.

Speaker Change #108: Really focused on quality versus dilutive loading and you've seen us focus on driving the right optimal mix the right bundling and the right retention outcomes. So that is the most.

Speaker Change #108: Thesis applies greatly to our postpaid customers and to ensuring that we continue to drive their perspective of value in what they're getting from a higher tier capability suite across both mobile and home I would say that there is limited dilution at the lower end of the Mark at the lowest end of the market.

Speaker Change #108: As as you highlighted but theres more offers.

Speaker Change #108: Our premium offerings continue to be offered to that lower end of the market and so we need to ensure that we continue to pursue the right balance of a value proposition to the customer based on the cost of those services and based on what customers want to acquire in terms of multi product capabilities in multi line capable.

Speaker Change #108: We're.

We're heading into the most aggressive quarter of the year.

Speaker Change #108: It's hard to say exactly how things will progress, but I think that you've seen a lot of consistency with respect to how we behave in the market and how we're going to continue driving our product intensity and our retention focus thesis going forward.

Over to you <unk>.

Yes, Thanks, Danielle I think a number of things that you said on the on the consumer side of play on the business side. So a few top ups I think just to hit the.

Speaker Change #108: The wireline revenue and profitability improvements were actually quite happy with the steady progress, we're making on the <unk> side in this in this regard I think a couple of points to be made their first and foremost.

Speaker Change #108: We have a volume play.

Speaker Change #108: We have a market share play that.

Allows us to run some of the pricing challenges in the market that we're taking advantage of and.

Speaker Change #108: In the process driving good revenue good cash growth as a result, I think secondly on the cost side as.

Speaker Change #108: As you've heard a couple of times on this call. We continue to push extremely hard in terms of our digital automation.

And Jen AI investments a lot of that driven by our tech tell us digital experienced team so.

Speaker Change #108: Not only are we growing revenue through good.

Speaker Change #108: Market share expansion, but doing that.

Speaker Change #108: With good cost structure and good cost reductions as a result, I think the.

Speaker Change #108: On the fixed space as you asked specifically when you think about.

Speaker Change #108: The cross sell opportunity within Canada, and the linkage across all of our <unk> assets.

Speaker Change #108: That that bodes really well and we know that every for example every business and in Canada.

Speaker Change #108: Needs employer based health care services and to be able to link. The two is a big part of our cross sell opportunity and on a global basis, we're seeing that cross sell funnel grow significantly and we've got over $300 million in that funnel.

Speaker Change #108: Right now so.

Speaker Change #108: I think that that also is an important part of how we're going to grow revenue, how we're going to improve.

Product intensity and as a result improve.

Speaker Change #108: <unk> and the last thing I'll say is.

Just back to your point around wireless <unk> one of the other components as you said the different construct.

Speaker Change #108: Our <unk>.

Being good.

Speaker Change #108: Iot and industry solutions growth in that number.

<unk> wireless network implementations.

Speaker Change #108: Iot industry solutions, and just core connectivity.

Speaker Change #108: That continues to grow.

Speaker Change #109: Thats helpful on the on the wireless <unk> side, so I'll pause there.

Speaker Change #109: Thank you very Linda and thank you everyone for joining US today, please feel free to reach out to the IR team with any follow ups and with that Karl back to you.

Karl: Everyone. This concludes the telephone for Q3 earnings conference call. Thank you for your participation and have a nice day.