TELUS reported 2 percent growth in revenue during the second quarter of 2025, with total operating revenues reaching $5.08 billion from $4.97 billion in Q2-2024. For the first half of 2025, revenues totaled $10.14 billion, also a 2 percent increase year-over-year.
TELUS Technology Solutions and TELUS Health combined contributed $4.32 billion in Q2 2025, a 2 percent increase from the prior year, while TELUS Digital Experience rose 8 percent to $966 million. TELUS Health saw the strongest revenue growth at 16 percent year-over-year, reflecting strategic expansion.
EBITDA grew slightly to $1.68 billion, and adjusted EBITDA rose 1 percent to $1.81 billion. Adjusted EBITDA margins contracted slightly year-over-year from 36.1 percent to 35.7 percent. Free cash flow improved to $535 million from $481 million in Q2 2024.
Capital expenditures decreased 2 percent to $678 million in the quarter, primarily due to reduced spending in TELUS Technology Solutions. Subscriber growth remained steady, with total telecom subscribers rising 5 percent to 20.5 million, although mobile ARPU declined by 3.3 percent and mobile net additions dropped significantly. TELUS Digital Experience saw a 63 percent decline in EBITDA due to higher costs, although revenue grew. Overall, TELUS maintained top-line growth while navigating margin pressures and cost optimization across segments.
Subscribers
TELUS added 198,000 net customer connections in Q2 2025, down 40 percent from 332,000 in Q2 2024, reflecting a broad-based slowdown across segments. Mobile phone net additions dropped to 55,000 from 101,000 a year earlier, while gross additions declined by 9 percent. Connected device net additions were 112,000, a 30 percent drop from 161,000 last year, primarily due to deactivations in transportation and IoT sectors.
On the fixed side, internet net additions were 27,000 compared to 33,000, TV additions fell to 12,000 from 25,000, and security and automation connections decreased to 9,000 from 20,000. Residential voice losses widened to 17,000 from 8,000. Year-to-date net additions totaled 416,000 versus 541,000 in the first half of 2024.
Total telecom subscribers rose 5 percent year-over-year to 20.5 million, with mobile phone subscribers increasing by 2 percent to 10.2 million and connected devices by 18 percent to nearly 4 million. Slower population growth, increased competition, and a focus on higher-value customer acquisitions contributed to the decline in net additions across most categories.
ARPU
TELUS reported a continued decline in mobile phone average revenue per user (ARPU) in 2025. In Q2 2025, ARPU was $56.58, down 3.3 percent from $58.49 in Q2 2024. On a year-to-date basis, ARPU averaged $56.85, a 3.5 percent decrease compared to $58.90 in the same period of 2024. The downward trend reflects competitive pricing pressures and shifting customer behavior. The decline in ARPU has been consistent over recent quarters, with year-over-year drops ranging between 3.1 percent and 3.7 percent since Q1 2024. Despite stable subscriber growth, the erosion in ARPU points to a revenue mix shift likely influenced by increased adoption of value plans and reduced roaming revenues.
Capex
TELUS reported a 2 percent year-over-year decline in capital expenditures in Q2 2025, totaling $678 million compared to $691 million in Q2 2024. For the first half of 2025, capital expenditures reached $1.27 billion, an 11 percent drop from $1.42 billion in the same period last year. The reduction was primarily driven by lower spending in TELUS Technology Solutions, which saw a 4 percent decrease in Q2 and a 13 percent decrease year-to-date. Real estate development-related capex also declined by 9 percent in Q2. TELUS Health increased its investments by 18 percent in Q2, and TELUS Digital Experience reported an 8 percent rise.
Capital intensity remained steady at 13 percent in Q2 but declined to 12 percent year-to-date compared to 14 percent in 2024. TELUS continues to focus investments on broadband, 5G, and digital capabilities, while aligning capital allocation with cash flow growth and efficiency improvements.
Baburajan Kizhakedath
