TELUS Corporation (TU): history, ownership, mission, how it works & makes money

A Brief History of TELUS Corporation (TU)

Founding and Early Years

TELUS Corporation was founded in 1990 as a result of the merger between the Alberta Government Telephones (AGT) and the BC Tel. The acquisition allowed the company to expand its operations significantly across Canada.

Expansion through Acquisitions

TELUS has expanded its footprint through various acquisitions. Key acquisitions included:

• 2000: Acquired Clearnet Communications for CAD 6.6 billion.
• 2005: Acquired the majority stake in Telus Mobility from the original stakeholders.
• 2013: Acquired Mobilicity for CAD 380 million.

Financial Performance

As of 2022, TELUS reported total revenue of CAD 17.2 billion, with a net income of CAD 1.6 billion. The company's revenue growth was propelled by its expansion into wireless services and healthcare.

Innovation and Technological Advancements

TELUS has focused heavily on technological innovations. The launch of the TELUS PureFibre network in 2017 has made significant strides in providing high-speed internet services.

Corporate Social Responsibility

The company invests in sustainable practices and community initiatives. In 2021, TELUS Foundation donated CAD 30 million to various non-profit organizations as part of its commitment to social responsibility.

Stock Performance

The stock price of TELUS Corporation (TU) as of October 2023 is approximately CAD 27.50. The company's market capitalization is around CAD 36 billion.

Recent Developments

In 2023, TELUS announced plans to invest CAD 10 billion over the next five years to enhance its 5G network and expand rural broadband access.

Conclusion of Financial Data and Projections

For future projections, analysts forecast a revenue growth rate of about 4-5% annually through 2025, driven by advancements in technology and increasing subscriber numbers.

A Who Owns TELUS Corporation (TU)

Major Shareholders

As of the latest data available, TELUS Corporation (TU) has a diverse base of shareholders, including institutional investors, mutual funds, and retail investors. The major shareholders are:

• Vanguard Group, Inc. - approximately 8.5% ownership.
• BlackRock, Inc. - approximately 6.2% ownership.
• Canada Pension Plan Investment Board (CPPIB) - approximately 5.8% ownership.
• Royal Bank of Canada - approximately 3.4% ownership.
• State Street Corporation - approximately 3.1% ownership.

Ownership Structure

TELUS Corporation has a dual-class share structure. The classes are:

• Class A Non-Voting Shares - Commonly held by retail and institutional investors.
• Class B Voting Shares - Held primarily by management and certain insiders, allowing them to maintain control over corporate decisions.

Recent Stock Performance

As of October 2023, TELUS Corporation (TU) trades at approximately $23.50 per share. The market capitalization stands at around $34 billion.

Dividend Information

TELUS has maintained a strong dividend policy. The current annual dividend is $1.20 per share, representing a yield of approximately 5.1% based on the current stock price.

Institutional Ownership Overview

Insider Ownership

Insider ownership at TELUS Corporation is significant, with executives and board members holding a cumulative total of approximately 15% of the Class B Voting Shares.

Recent Changes in Ownership

In recent months, institutional ownership has seen an increase due to strategic investments by various funds and a decline in retail investor presence amid market volatility.

TELUS Corporation (TU) Mission Statement

Mission Statement

TELUS Corporation is committed to leveraging the power of technology to provide outstanding customer experiences and enhance the quality of life in the communities it serves. The company aims to deliver innovative telecommunications solutions while prioritizing sustainability and social responsibility.

Core Values

The core values of TELUS Corporation include:

• Customer First: Placing the needs of customers at the center of every decision.
• Innovation: Embracing new technologies and ideas to drive progress.
• Social Responsibility: Committed to improving communities through various initiatives.
• Teamwork: Fostering collaboration among employees for better results.
• Integrity: Conducting business ethically and transparently.

Financial Overview

As of 2023, TELUS Corporation reported the following financial data:

Social Responsibility Initiatives

TELUS emphasizes its commitment to social responsibility through various initiatives:

• Health Care: Investments in digital health solutions, including TELUS Health, which reached over 12 million users in Canada.
• Environmental Sustainability: Aiming to reduce greenhouse gas emissions by 50% by 2025.
• Community Investment: Donating over CAD 1 billion to communities since 2000.

Technological Advancements

Recent advancements by TELUS include:

• 5G Network Deployment: Over 25 million Canadians covered by 5G service as of 2023.
• Smart Home Technology: Launch of TELUS SmartHome Security with a growing customer base of approximately 250,000 subscribers.
• IoT Solutions: Investment of CAD 1 billion in IoT technology and platforms over the next five years.

Market Position

As of 2023, TELUS is positioned as one of Canada's leading telecommunications companies:

How TELUS Corporation (TU) Works

Overview of TELUS Corporation

TELUS Corporation, a Canadian national telecommunications company, operates under the ticker symbol TU on the New York Stock Exchange. As of 2023, TELUS has a market capitalization of approximately $37 billion USD. The company provides a wide range of telecommunications products and services, including mobile voice and data, internet access, television, and health solutions.

Business Segments

TELUS operates through several key business segments:

• Wireless
• Wireline
• Health

Wireless Segment

The Wireless segment contributes significantly to TELUS's revenue. In 2023, TELUS reported wireless revenue of $8.5 billion CAD, reflecting a growth of 6.5% year-over-year. The company serves over 10 million wireless subscribers.

Wireline Segment

In the Wireline segment, TELUS provides high-speed internet and television services. The company's wireline revenue for 2023 was approximately $3.9 billion CAD, a year-over-year increase of 3.2%. TELUS has over 1.5 million television subscribers and more than 3 million high-speed internet customers.

Health Segment

The Health segment includes TELUS Health solutions which contribute to the company's long-term growth strategy. Revenue for this segment in 2023 reached $1.1 billion CAD, showing growth of 12% compared to the previous year.

Financial Performance

In the fiscal year 2022, TELUS reported a consolidated revenue of $17.2 billion CAD. The net income for the same year was approximately $1.6 billion CAD, with a net income margin of 9.3%.

Capital Expenditures

TELUS is committed to expanding and enhancing its network infrastructure. The company allocated $2.1 billion CAD in capital expenditures in 2023 to improve wireless and wireline services.

Subscriber Growth

Subscriber growth has been a focus for TELUS. In the fourth quarter of 2022, TELUS added approximately 125,000 net new wireless subscribers, and in Q1 2023, an additional 30,000 were added.

Market Position

TELUS is ranked among the top telecommunications providers in Canada, alongside Rogers Communications and BCE Inc. TELUS holds a market share of approximately 30% in the wireless sector.

Recent Developments

In 2023, TELUS announced a partnership with Google Cloud to enhance its 5G capabilities. This collaboration aims to improve customer experience and innovate new services in the telecommunications landscape.

Table of Key Financial Metrics

Conclusion

Through its diverse range of services and a commitment to technology and infrastructure, TELUS Corporation continues to enhance its position within the telecommunications industry, aiming for sustainable growth and innovation in the years to come.

How TELUS Corporation (TU) Makes Money

Revenue Segments

TELUS Corporation generates revenue through various segments, primarily categorized into Wireless, Wireline, and Health services. As of the latest fiscal report, the breakdown of revenue is as follows:

Wireless Services

Wireless services constitute the largest revenue stream for TELUS. The company offers a range of services, including mobile voice, data, and device sales. As of Q2 2023, TELUS reported approximately 9.5 million wireless subscribers. The average revenue per user (ARPU) was CAD 70 per month.

Wireline Services

The wireline segment includes internet, television, and home phone services. TELUS has made significant investments in fiber optic technology, enhancing service quality. In Q2 2023, TELUS reported 2.2 million internet subscribers, with a quarterly revenue contribution of CAD 1.1 billion from this segment.

Health Solutions

The health segment provides digital health solutions and remote patient monitoring services. In Q2 2023, TELUS Health achieved revenues of CAD 350 million. The company continues to invest in acquiring innovative health technology firms to expand its service offerings.

Operational Efficiency and Cost Management

TELUS maintains a strong focus on operational efficiency, which is reflected in its EBITDA margin. For Q2 2023, the EBITDA margin stood at 40%, showcasing effective cost management strategies that enhance profitability. Its total operating expenses for the same quarter were reported as CAD 4.2 billion.

Dividend Policy

TELUS has a consistent dividend payout strategy, appealing to income-focused investors. The quarterly dividend as of Q3 2023 is CAD 0.320 per share, yielding an annualized dividend yield of approximately 4.5%.

Future Growth Prospects

Looking ahead, TELUS aims to increase its investment in 5G technology and digital health solutions. The capital expenditures for fiscal year 2023 are projected to be around CAD 2.8 billion, focusing on expanding network coverage and enhancing customer experience.