Telus Slashes Dividend and Reports Q2 Loss as New CEO Victor Dodig Takes the Helm
The dividend reduction will save about C$2.7 billion, while the company lowers guidance and targets non-core asset sales to reduce debt.
- On Friday, Telus Corp. slashed its dividend by about 55% as new CEO Victor Dodig announced a strategic shift to repair the company's balance sheet following disappointing quarterly results.
- Telus has sought to reduce debt after years of acquisitions in fiber and 5G networks, facing analyst pressure since last year to adjust its unsustainable payout plans.
- The company reported a $1.8 billion loss for the quarter ended June 30, while the dividend reduction is expected to generate about $2.7 billion in cash savings through 2028.
- Dodig stated the company will concentrate investments on wireless and wireline networks where it has the strongest competitive position, while negotiating sales of non-core assets including Telus Health.
- Analyst reactions diverged sharply; Scotiabank's Maher Yaghi called the cut "necessary to restore financial flexibility," while RBC's Drew McReynolds warned the "reset" would pressure shares as stock fell over 10.5% in early trading.
15 Articles
15 Articles
New Telus CEO slashes dividend as first step in major remake as company posts a $1.8 billion Q2 loss
Telus Corp. has unveiled the start of a transformation of its business under new CEO Victor Dodig, which includes reducing debt, returning to core business functions, and looking to sovereign artificial data centres for future growth.
The News
Pakistan Live NewsTelus announces dividend cut and asset sales under new CEO
Telus Corp. has cut its annual dividend by about 55 percent and announced plans to sell assets as new chief executive Victor Dodig moves to reduce the company's debt and strengthen its balance...
The Toronto Star
Telus slashes dividend and reports Q2 loss as new CEO Victor Dodig takes the helm
Telus Corp. cut its dividend by more than half on Friday as it reported a loss in its latest quarter, signalling a new direction following a change in the company's top job.
Telus Cuts Payout, Plans Asset Sales as Dodig Makes His Mark
Canadian communications company Telus Corp. slashed its dividend by about 55% and will try to unload assets, including parts of its health division, as new CEO Victor Dodig looks to repair the balance sheet.
Telus Cuts Dividend, Plans Asset Sales as New CEO Makes His Mark
Canadian communications company Telus Corp. slashed its dividend by about 55% and will try to unload assets, including parts of its health division, as new CEO Victor Dodig looks to repair the balance sheet.
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