Telus swung to a third-quarter loss and lower revenue, dragged by a large goodwill impairment tied to the company's divestiture plans.
The Canadian telecom company swung to a loss of 660 million Canadian dollars ($470.8 million), or C$0.42 a share, compared with a profit of C$431 million, or C$0.32 a share, in the comparable quarter a year ago.
The decline was due to a C$800 million noncash writedown at its Telus Health segment due to lowered growth expectations, weak market conditions, and valuation marks tied to the company's active divestiture process.
Adjusted earnings were C$0.16 a share. According to FactSet, analysts were expecting C$0.17 a share.
Operating revenues and other income fell 2% C$5.03 billion, but topped expectations of a sharper decline to C$4.98 billion that analysts expected.
Mobile network revenue edged up 1%, supported by 84,000 net new mobile phone subscribers which rose by 2,000 from the prior year as customer churn fell.
In July, Telus launched a transformation strategy with the goal of cutting costs, paring down debt and refocusing capital on its core telecom network and artificial intelligence infrastructure.
As part of its transformation strategy, Telus has launched an efficiency program that aims to save about C$900 million by the end of 2028. The company plans to achieve about 80% of those savings across its core telecom operations, with the remainder coming from its global platform businesses.
Chief Executive Victor Dodig said the company's transformation strategy aims to create leaner, more focused business better positioned to deliver sustainable, profitable growth and long-term shareholder value.
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