Telco ditches reporting on TV and landline numbers
By Ahmad Hathout
Doug French, Telus’s long-time chief financial officer, is retiring from the company on June 30 and will be replaced by the CFO of Telus Digital and Telus Health, Gopi Chande.
Affectionately known as “Uncle Doug” internally, French will stay on as an advisor until the end of July and will remain seated as chair of the board of Terrion, Telus’s tower company.
His retirement marks a 30-year career at the telco giant. Holding the CFO and executive vice president position for a decade, French was also a senior vice president and corporate controller between 2014 and 2016; vice president and controller in the customer solutions division between 2006 and 2014; vice president of corporate accounting and financial reporting between 2002 and 2006; and director of finance at Telus Mobility between 1999 and 2002. Prior to that, he held a position as director of financial reporting at one of Telus’s predecessor companies, Clearnet, for three years starting in 1996.
“Doug’s innumerable and important contributions to TELUS’ success over the course of his outstanding career have been nothing short of extraordinary,” Darren Entwistle, TELUS president and CEO, said in a press release. “For three decades, Doug has materially influenced the financial success of our organisation, demonstrating an inspiring trajectory as he progressed from Finance Manager to Chief Accountant, to business unit Controller, and ultimately to his 10-year tenure as our highly respected and trusted CFO.”
French will give way to Chande, a long-time Telus executive who rose up the ranks quickly. Before becoming CFO of Telus Health last year, she was the CFO of Telus Digital starting in March 2024. Prior to that, she was the treasurer and senior vice president of finance between 2022 and 2024; vice president of finance from 2015 to 2022; and director of finance from 2009 to 2015.
“Over her 16-year tenure at TELUS, Chande has demonstrated exceptional strategic and financial leadership,” said the release, noting she has worked closely with French. “Notably, as CFO of TELUS Digital, she guided the company’s financial evolution as a publicly traded company on the Toronto Stock Exchange and New York Stock Exchange through to its 2025 privatization.
“Throughout her tenure, Chande has held a number of progressively senior roles supporting critical business areas across the organization, including vice-president business partner for TELUS’ PureFibre, Customer Service and Technology teams. Prior to her appointment as CFO of TELUS Digital, she was TELUS’ Treasurer, responsible for treasury, mergers and acquisitions, pensions, investor relations and TELUS’ expansive sustainability portfolio.”
French’s retirement means, come next quarter’s conference call, there will be a new one-two punch at the top, as earlier this year, Entwistle also announced he was leaving the top job on June 30.
The news comes on the day Telus reported its first-quarter earnings. It reported lower overall revenue, at $5 billion, one per cent lower than the same quarter last year. Net income was $144 million, 52 per cent lower against the same period.
Like Rogers and Bell, Telus is “moderating” on its capital expenditures, with the spending allocation for this year being $2.3 billion. Despite that, it increased by 11 per cent its spending in the first quarter compared to the same period last year, hitting $651 million across all segments.
The company added 428,000 gross mobile phone subscribers in the quarter, 26 per cent more than the comparable period and attributed to promotional activity. Of those, 12,000 were net new, which was 40 per cent lower against the comparable period. Churn was 29 basis points higher, at 1.35 per cent in the quarter. And monthly average revenue per user (ARPU) was down one per cent to $56.56. The total base grew two per cent to 10.3 million by the end of the quarter, March 31.
Internet net adds was flat at 21,000 for a total base of 2.8 million, up three per cent year-over-year.
Connected device net adds were 229,000 in the quarter, up 55 per cent, which was attributed to an increase in customers in the transportation and connectivity industries. The total base by quarter-end was 4.6 million, up 19 per cent.
Telus said it will no longer report TV, security, automation and landline subscribers “to apply a product-intensive focus on our core bundling foundation of mobility and internet.”
“This change underscores our focus on product intensity, reflecting our core business thesis of mobility and internet, complemented by a suite of additional products and services that will add value to our customers,” French added on the earnings call. “Overall, this update reinforces our focus on economically accretive growth, supporting our efforts to drive profitability and cash flow.
“Our strategy is built on a proven thesis of bundling mobile and home, driving lower churn, higher revenue per household through internet and wireless, and further differentiated service offerings,” French said. “As we progress through the year, our team will continue to execute, maintaining a strategy that differentiates us from our competitors and protects long-term wireless industry health.”
Telus Health reported total operating revenues of $526 million, up 11 per cent, while Telus Digital reported revenues of $813 million, down by $1 million on a year-over-year basis.
