TELUS CORP

EBITDA – TTech segment

TTech EBITDA increased by $25 million or 0.4% in 2023. As a partial offset to the growth drivers discussed withinTTech Adjusted EBITDA below, EBITDA also reflects higher restructuring and other costs of $472 million in 2023, primarily related to efficiency and effectiveness programs, inclusive of real estate rationalization, as well as one-time amounts recorded of $68 million for the ratification of the new collective agreement between the TWU and ourselves.

TTech Adjusted EBITDA increased by $501 million or 8.5% in 2023, reflecting: (i) higher mobile network, residential internet and security revenues, largely driven by subscriber growth; (ii) broad-based cost reduction efforts, including workforce reductions, synergies achieved between LifeWorks and our legacy Health business, and increased TTech outsourcing to DLCX, as well as savings in marketing, discretionary and administrative costs; (iii) inorganic contributions from acquisitions, predominantly from LifeWorks, in addition to its higher capitalized labour; and (iv) higher mobile equipment margins. These factors were partially offset by: (i) merit-based compensation increases; (ii) higher costs related to the scaling of our digital capabilities, inclusive of increased subscription-based licences, contractor and cloud usage costs; (iii) lower TV and legacy voice margins driven by technological substitution; (iv) higher bad debt expense; and (v) lower agriculture and consumer goods margins.