Top Growth Stock for August 2021 in a Safe Industry

TELUS (TSX:T)(NYSE:TU) has delivered main financial and operational results for a number of years. The staff’s dedication to a social goal has earned it the belief and loyalty of shoppers and communities, whereas additionally driving industry-leading outcomes. Dealing with unprecedented challenges, TELUS’s execution drove robust operational and monetary ends in fiscal 2020, together with industry-leading buyer progress in each the corporate’s wi-fi and wireline portfolios.

As well as, TELUS ranked primary within the {industry} with 537,000 wi-fi buyer additions, together with industry-leading subscriber progress throughout the web, TV, and safety. According to TELUS’s revised objective to ship flat to barely optimistic earnings progress in 2020, the corporate’s consolidated working revenues and earnings grew by 5.5 and 0.2 p.c, respectively, reflecting the corporate’s strong resiliency and operational excellence, which helped it to mitigate pandemic-related impacts.

Constructive earnings progress

Notably, TELUS was the one nationwide telecom supplier to report optimistic earnings progress for the yr. Equally, TELUS continued to drive a powerful free money circulation of $1.43 billion, up 54 p.c over 2019, and inside the decrease finish of the corporate’s authentic goal vary of $1.4 to $1.7 billion, set again in February 2020.

Importantly, this free money circulation outcome was achieved whereas persevering with to make astute capital investments in keeping with TELUS’s authentic capex steering for the yr.

Additional, TELUS’s braveness to innovate has pushed robust and main wi-fi outcomes. TELUS has engaged in leveraging the energy of the corporate’s digital channels, coupled with the corporate’s efficiency tradition and the grit exemplified by TELUS’ staff in pivoting retail gross sales personnel to outbound gross sales and repair capabilities.

This led to the achievement of industry-leading smartphone and complete wi-fi internet additions of 280,000 and 537,000, respectively.

Main consumer progress

Moreover, TELUS’ main consumer progress has been supported by the corporate’s customer support excellence ethos, together with the corporate’s top-ranked buyer loyalty outcomes throughout key product strains, owing to TELUS’s dedication to delivering premium consumer experiences over the world’s greatest broadband wi-fi community.

The corporate completed fiscal 2020 with blended churn at lower than one p.c for the primary time. Underlying this outcome, TELUS postpaid churn of 0.77 p.c represented the corporate’s seventh consecutive yr of postpaid churn beneath one p.c, a feat unmatched by the corporate’s nationwide and international friends.

TELUS’s constant deal with worthwhile, high-quality smartphone-centric subscriber progress seems to have been offset by impacts associated to the pandemic, notably decrease roaming revenues, driving a decline in community revenues of 1.5 p.c.

Targeted on price administration

This income decline was partially mitigated by TELUS’ ongoing and intense deal with price administration. Consequently, TELUS’ wi-fi earnings had been down just one p.c and this outcome was industry-leading versus the corporate’s nationwide friends. In wireline, TELUS as soon as once more delivered industry-leading income and earnings progress, in addition to one of the best buyer progress.

The corporate outcomes mirrored the elevated contributions from web and third-wave knowledge service progress, in addition to strong efficiency in TV buyer additions, robust progress in its safety buyer base, and the continued discount of voice line losses.

Total, at present market costs, TELUS seems very well-positioned to outperform the final market.

This text represents the opinion of the author, who could disagree with the “official” advice place of a Motley Idiot premium service or advisor. We’re Motley! Questioning an investing thesis — even one in all our personal — helps us all suppose critically about investing and make selections that assist us turn out to be smarter, happier, and richer, so we typically publish articles that might not be in keeping with suggestions, rankings or different content material.

The Motley Idiot recommends TELUS CORPORATION. Idiot contributor Nikhil Kumar has no place in any of the shares talked about. 

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