Photo: The Canadian Press
VANCOUVER — Telus Corp. expects a big bump in free cash flow as well as double-digit gains in revenue and earnings in the year ahead as it winds down a major broadband build out and works to maximize benefits from acquisitions, including in its health division.
The company said Thursday it expects free cash flow to jump 60% to $2 billion in the year ahead compared with the last as the intensity of its capital spending drops to a historic low.
“We expect a very meaningful drop in core capital expenditures,” chief executive Darren Entwistle said on an analyst call.
The drop in spending, along with expected gains across several divisions, should result in operating revenue growth of 11% to 14%, and adjusted earnings before deductions of 9.5% to 11%.
“A differentiated asset base, best in class customer experiences, world leading network and our unique growth businesses provide us with our confidence in the robust outlook for our business,” Entwistle said.
The guidance came as the company reported fourth-quarter profits of $248 million, or 17 cents per share, for the quarter ended Dec. 31, down from $644 million or 47 cents per share a year earlier, when it got a $410 million boost from the sale of its financial solutions business.
Operating revenue and other revenue for the quarter totalled $5.1 billion, up from $4.9 billion in the last three months of 2021.
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