BURST
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.
“There’s a need for greater simplicity at Telus and a return to our roots,” Dodig said during a conference call on Friday with analysts, as he embarked on a new strategic direction . He took over from long-time CEO Darren Entwistle at the end of June.
The new top boss promised that the changes ahead will see Telus adopt tighter financial discipline and sell off non-core businesses under a streamlined corporate structure.
However, while Dodig heralded Telus’ strengths at the outset of his promised transformation, financial results released Friday indicate challenges ahead.
Incoming chief financial officer Gopi Chande characterized operating results as stable, but the company posted a $1.8 billion loss in the second quarter as it absorbed a $2.1 billion writedown of its Telus Digital business.
Before the writedown, Telus saw an operating profit of $1.6 billion, which was down five per cent from the same quarter a year ago, on revenue of $4.9 billion, which was down two per cent from 2025. And the company’s revised outlook is for flat revenue growth in the year ahead.
“While results reflect good underlying performance in mobility, with network revenue continuing to improve, they were offset primarily by weaker results in Telus Digital,” Chande said on the conference call.
Dodig is taking over Telus after Entwistle’s 26-year reign at the helm. Dodig set out three priorities for the company’s makeover: strengthening its balance sheet, tightening up financial discipline, then devoting the capital that frees up room to invest in profitable and sustainable growth, including in AI data centres.
The first step Dodig took to repair the balance sheet was to slash the company’s dividend 55 per cent to 18.75 cents per share, or 75 cents on an annual basis, which would free up $2.7 billion as “a direct action to accelerate that path to lower debt.”
“Our second-quarter 2026 results and our 2026 guidance update underscore a company that is in active transition, leveraging our strengths and addressing challenges to position Telus for long-term success,” Dodig said.
The initial response of investors, however, was negative as Telus shares fell $1.70, 11 per cent, to close at $13.38 per share in trading Friday on the Toronto Stock Exchange.
Telus hired Dodig, formerly CEO of CIBC, to revamp operations in a way that will turn the company’s stock performance around.
All three of Canada’s major telecoms have seen their share prices battered by investors in recent years. Bell Canada’s share price is down 6.4 per cent so far in 2026. Rogers Communications is down almost nine per cent.
Telus’ decline, however, has been steepest at almost 26 per cent since the start of the year.
Dodig, in his opening remarks during Telus’ conference call, remarked on his 11 years of experience at the helm of CIBC, where he gained “a deep understanding” of the importance of customer service and the other elements needed to execute a turnaround.
“In addition, I’ve served as a director of the Telus board for three years, which has provided the on-ramp to shepherd the work we need to do here,” he added.
Dodig started that work a week ago with a reorganization of the executive suite that saw Telus hire executive David Fuller back as executive vice-president and group president for Telus Communications. Fuller was president of Rogers Wireless from 2021 to 2022, but previously, from 2004 to 2019, served in several senior management roles at Telus.
He also appointed longtime executive Navin Arora to the role of executive vice-president and group president of global platform businesses, which will oversee Telus Health, Telus Agriculture and Telus Digital Solutions, the divisions that the company is looking to sell off to generate more cash to pay down debt.
“Our goal is to continue to nurture the value in those businesses and focus on those that we believe should be monetized because they are better off in the hands of another owner,” Dodig said.
The new CEO sees opportunities for growth in the AI data centres project. Capital spending in the year ahead will include “modest strategic investments” in its AI Factory plans, including established centres in Rimouski, Que. and Kamloops.
“Telus is building from a foundation of strength and is competitively advantaged,” Dodig said in his closing remarks on the call.
He added that the company has assets in its fibre-optic and wireless networks that “are difficult to replicate.”
“We are executing a clear strategy to transform Telus. This work is already underway.”