TELUS International (Cda) experienced a significant drop in shares on Friday morning, following a downward revision of its parent company’s outlook for the full year. The weak performance of its Telus International unit led to this unfavorable development.
As of 9:35 a.m. ET, shares in Toronto were down nearly 29% at 13.76 Canadian dollars ($10.49), while the stock in New York witnessed a 30% decline, reaching $10.36. It is worth noting that both Toronto and New York shares have hit 52-week lows. Additionally, the shares of Parent Company Telus also suffered a decline of around 2.4%, settling at C$24.94.
Late Thursday, the Canadian telecommunications company adjusted its forecasts for the year 2023. Operating revenue growth is now expected to be between 9.5% and 11.5%, a decrease from the previous forecast of 11% to 14%. Adjusted earnings before interest, taxes, depreciation, and amortization growth has also been revised to 7% to 8%, falling short of the earlier range of 9.5% to 11%.
Telus attributed these revisions to challenges in consumer demand for its technology services, particularly in its artificial intelligence and content moderation-focused unit, Telus International. Consequently, the guidance for Telus International has been lowered, with projected full-year revenue ranging from $2.7 billion to $2.73 billion, and adjusted Ebitda expected to be between $575 million and $600 million.
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