TELUS - President and CEO , Darren Entwistle
President and CEO , Darren Entwistle
Source: CTV News
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  • Telecommunications giant, TELUS (TSX:T) grew steadily in the first quarter of 2020, but has deferred any financial guidance until the next quarter
  • The company reported a quarterly consolidated operating revenue of C$3.7 billion, which is 5.4 per cent higher than in 2019’s same quarter
  • Net earnings in the first quarter fell by around 19 per cent to $353 million, due to the impact of depreciation and amortization on TELUS’ bottom line as well as the company’s recent acquisitions
  • TELUS cited the pandemic’s still unknown length and its overall impact on the telecommunications sector as reasons for withholding the guidance
  • TELUS (T) is down 0.83 per cent, with shares trading for $22.68 and a market cap of $28.85 billion

Telecommunications giant, TELUS (TSX:T) grew steadily in the first quarter of 2020, but has deferred any financial guidance until the next quarter.

The company reported a quarterly consolidated operating revenue of C$3.7 billion, which is 5.4 per cent higher than in 2019’s same quarter.

However, the company’s net earnings in the first quarter fell by around 19 per cent to $353 million. The company attributes the loss in earnings to the impact of depreciation and amortization on its bottom line as well as recent acquisitions.

Despite the strong quarter, TELUS has withdrawn all previous guidance and is awaiting its second quarter report to re-issue an updated outlook.

TELUS cited the pandemic’s still unknown length and the overall impact on the telecommunications sector as reasons for withholding the guidance.

Darren Entwistle, President and CEO of TELUS, believes the strong first quarter will set the company up for the unpredictable months ahead.

“TELUS once again achieved strong financial and operational results in the first quarter, characterized by our hallmark of meaningful customer growth, together with enhanced profitability, despite the challenging circumstances we faced in the month of March.

Our robust and consistent performance over the longer-term, coupled with our strong financial position, positions us well to navigate the uncertainty caused by the global COVID-19 pandemic, as well as for anticipated post-pandemic economic challenges and market opportunities,” he said.

The company’s market share has had a turbulent quarter, reaching its highest point in early February, before plunging down more than 20 per cent, amid the onset of the COVID-19 pandemic.

In recent weeks the share price has risen somewhat, but has yet to fully regain the loss.

TELUS (T) is down 0.83 per cent, with shares trading for $22.68 at 9:57am EDT. 

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