When it comes to Canadian telecom titans, TELUS (TSX:T) and Quebecor (TSX:QBR.B) often find themselves in the spotlight. Both companies have recently released their 2024 earnings, providing a fresh perspective on their performance and future trajectories. But which one comes out on top? Let’s dig in and find out.
TELUS
In the fourth quarter of 2024, TELUS stock reported consolidated operating revenues of $5.4 billion, marking a 3.5% increase from the same period in the previous year. This uptick was largely driven by higher service revenues and gains from real estate and copper monetization within the technology solutions segment.
The company added 70,000 net wireless subscribers during the quarter, surpassing competitors such as Rogers and BCE, which reported 14,000 and 73,000 net additions, respectively. This growth underscores TELUS stock’s strong market position and effective customer acquisition strategies.
Looking ahead, TELUS stock projects a 2-4% increase in operating revenues and a 3-5% rise in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2025. The company also anticipates generating approximately $2.15 billion in free cash flow, aiming to bolster balance sheet strength and support its dividend-growth program.
Quebecor
Quebecor has showcased robust financial results for 2024. The company reported a 17.6% increase in cash flows from operating activities, reaching $1.72 billion. Adjusted EBITDA rose by 5.8% to $2.37 billion, while revenues saw a 3.8% uptick, amounting to $5.64 billion.
The telecommunications segment was a significant contributor, with revenues from mobile services and equipment increasing by 15.9%, primarily due to the acquisition of Freedom Mobile and growth at Videotron. The company also added 373,300 mobile telephony connections, reflecting a 9.9% growth.
Quebecor’s net income attributable to shareholders stood at $747.5 million ($3.23 per basic share), marking a 14.9% increase from the previous year. The company’s consolidated net debt leverage ratio decreased to 3.31, the lowest among Canada’s major telecoms, highlighting its strong financial discipline.
Looking ahead
Both companies have demonstrated a commitment to returning value to shareholders. Quebecor increased its quarterly dividend from $0.325 to $0.35, reflecting confidence in its financial health. TELUS stock, however, continues to support its industry-leading dividend growth program, underpinned by its robust free cash flow generation.
TELUS stock’s focus for 2025 includes enhancing operational efficiency, expanding its customer base, and leveraging its broadband networks to drive growth. The company’s projections for increased revenues and EBITDA indicate a positive outlook.
Quebecor aims to build on its strong 2024 performance by further integrating Freedom Mobile and expanding its telecommunications footprint. The company’s low debt leverage and solid cash flow position it well for future investments and shareholder returns.
Bottom line
Both TELUS stock and Quebecor showcased resilience and growth in a competitive telecom landscape. Investors may find both companies appealing, depending on their investment strategies and risk appetites. TELUS stock offers steady growth with a focus on operational efficiency. Meanwhile Quebecor presents robust financial performance and expansion potential. As always, potential investors should conduct thorough research and consider their individual financial goals before making investment decisions.
