"The incremental cost savings are expected to more meaningfully contributeto fourth quarter EBITDA, with the run rate expected to be felt by the second quarter of nextyear," he said on a call with analysts Friday.
Entwistle's comments came as the cost of that restructuring took a bite out of the telecom company's third-quarter profit, which dropped 74 per cent year-over-year despite a solid revenue boost and record customer growth.
In early August, Telus announced it would be cutting 6,000 jobs due to issues around regulation and competition, including 4,000 at its main Telus business. The reductions would be made through a combination of layoffs, early retirement and voluntary packages, as well as vacancies that would not be filled. The other 2,000 were at
At the time, the company said its planned restructuring would cost the company
The company has “substantially completed” the headcount reductions, chief financial officer
Net income attributable to shareholders fell to
On an adjusted basis, net income was down 20.8 per cent to
Among the other factors Telus attributed to the profit decline were higher depreciation and amortization from its network buildout and acquisitions, and higher financing costs.
The company said operating revenues rose 7.5 per cent in its third quarter to
Adjusted basic earnings fell nearly 27 per cent to
Telus said net customer growth hit a quarterly record of 406,000, an increase of 59,000 from the year before that it said was driven by demand for bundled services.
Mobile and post-paid churn were both up slightly, "against the backdrop of heightened competitive activity," Entwistle said on the call.
Results were overall in line with expectations, as the full benefits of Telus's restructuring plans have yet to be reflected in results, Desjardins analyst
RBC analyst
In another note after the bell, McReynolds said the third-quarter results represent a potential early glimpse into Telus's playbook for competing against Rogers-Shaw. This includes "ceding as little market share as possible on wireline loading in
Shares in the company were up 2.79 per cent at
— With files from
This report by The Canadian Press was first published
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