A C$800 million noncash writedown at Telus Health pushed Telus to a third-quarter loss, as the Canadian telecom company cited lower growth expectations, weak market conditions and valuation marks related to its divestiture process. Revenue also declined, though the drop was smaller than analysts had forecast.
Telus reported a net loss of C$660 million, or C$0.42 a share, compared with a profit of C$431 million, or C$0.32 a share, in the same quarter a year earlier. Adjusted earnings were C$0.16 a share, below the C$0.17 analysts expected, according to FactSet.
Operating revenues and other income fell 2% to C$5.03 billion, exceeding analysts’ expectation of C$4.98 billion. Mobile network revenue edged up 1%, with 84,000 net new mobile phone subscribers—2,000 more than in the prior-year quarter—as customer churn fell.
Telus launched a transformation strategy in July to reduce costs and debt while directing more capital toward its core telecom network and artificial intelligence infrastructure. An efficiency program under the plan aims to save about C$900 million by the end of 2028. Telus expects about 80% of the savings to come from its core telecom operations, with the rest from its global platform businesses.
Chief Executive Victor Dodig said the strategy is intended to create a leaner, more focused business positioned to deliver sustainable, profitable growth and long-term shareholder value.
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