Telus reports drop in profit for Q2; La Caisse to acquire stake in infrastructure

Telus Corp. has picked a global investment group and pension fund to acquire a 49.9 per cent equity interest in its infrastructure The company made the announcement alongside the release of its second quarter results Friday, Aug. 1, in which it reported a steep drop in profit and a decline in net subscriber adds across the board. La Caisse, billed as Canada’s second-largest pension fund, will take on a 49.9 per cent stake in Terrion LP and general partner Terrion GP Inc. for $1.26 billion. Terrion is a newly created tower operator based out of Montreal to hold the cellular towers Telus says it is carving out of its business. The telecom noted in its announcement that it retains full ownership and control “of all active network components and security systems.” It said the transaction values Terrion at over $2.5 billion and anticipates it will reduce Telus’ net debt by approximately $1.26 billion. “The partnership establishes Terrion as Canada's largest dedicated wireless tower operator and enables wholesale access and third party co-location in support of national wireless competition in Canada as part of TELUS' ongoing commitment to bring world leading connectivity to more Canadians,” the company said. Terrion will lease capacity on the towers to Telus for an initial period of eight years, with a possibility of renewal after that. Telus expects to get regulatory approval and finalize other closing conditions before the end of its third quarter this year. Telus CEO Darren Entwistle told analysts Friday that Terrion “will focus on building new towers for Telus…while also developing partnerships to expand tower access across the industry and further monetize this valuable asset. “Having a single company focused on tower expansion will positively impact all wireless providers’ ability to deploy acquired spectrum to enhance coverage, capacity, and service improvements for their customers,” Entwistle said. He also thanked Telus’ former executive vice president of technology strategy, Eros "Woody" Spadotto, “my longtime colleague,” for agreeing to become CEO of Terrion. “I expect that he is going to deliver an excellent performance in this assignment.” Profit down, revenues up in Q2 The company's profit dropped steeply, coming in at a net loss of $245 million for the quarter ended June 30. It had reported $221 million in profit in the same period last year. Overall operating revenues and other income totalled $5.08 billion, up two per cent from $4.97 billion the year prior. Its adjusted EBITDA (earnings before interest taxes depreciation and amortization) was $1.81 billion, flat from $1.79 billion in Q2 2024. Capital expenditures were down just slightly, from $691 million last year to $678 million this year, a drop of one per cent. Free cash flow was $535 million at the end of the period, up 11 per cent from $481 million. Average revenue per user (ARPU) for mobile phone customers was down in the quarter, hitting $56.58 (down $1.91), contributing to an overall mobile network revenue decrease of $11 million or one per cent. “We are seeing a continuing increase in the adoption of unlimited data and Canada-U.S.-Mexico plans, which provide higher and more stable ARPU on a monthly basis while also giving customers cost certainty in lower roaming fees to the U.S. and Mexico, and lower data overage fees, respectively,” Telus reported. Its connected device net adds were 112,000, down 49,000 due to higher deactivations in IoT connections in the transportation and connectivity industries, it said. Gross mobile phone additions were 376,000 during the quarter, a decrease of 39,000 the telecom attributes, in part, to the slowing population growth and immigration. Net adds were 55,000, down 46,000. Telus’ mobile churn rate was 1.06 per cent, similar to the 1.07 per cent it reported in Q2 2024. Residential voice net losses were 17,000, an increased loss of 9,000. Net internet adds were 27,000, down 6,000, while TV net adds were 12,000, a decrease of 13,000 Security and automation net additions were 9,000, down by 11,000 for the quarter. Fixed voice service revenue dropped by $8 million or four per cent during the quarter, “reflecting the ongoing decline in legacy voice revenues as a result of technological substitution and shifts in consumer purchasing decisions,” Telus said, noting that was partially mitigated by its bundled offerings and retention efforts. news@thewirereport.ca

Telus reports drop in profit for Q2; La Caisse to acquire stake in infrastructure

Telecom |
By Wire Report Staff
| August 1, 2025

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Telus reports drop in profit for Q2; La Caisse to acquire stake in infrastructure

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