Darren Entwistle: Jeff, do you want to follow-up quickly briefly?
Jeff Puritt: Sure. We guided at first instance and then reiterated first half, second half split for revenue 48%, 52% for adjusted EBITDA 45%, 55%. That seasonality is somewhat consistent over the past several years and further reinforced by the visibility we have for the wins we’ve had in Q1 in particular, just over the last couple of months. To Doug’s comment a moment ago, it’s also predicated upon stabilization in the historical decline and now hopefully coming out of that with our social media client as well as continued strong growth 30% year-over-year for the quarter serving Google and 22% year-over-year in the first quarter serving TELUS. So we think that the view we’ve reaffirmed is prudent and appropriate reflective of what we’re actually seeing and it’s not entirely inconsistent with our historical seasonal profile.
Darren Entwistle: Thanks, Jeff. Navin?
Navin Arora: Yes. Thanks, Darren. So just to answer the question directly, is it real growth? It absolutely is. You know, I shared the sales booking, numbers for health in Q1, and that absolutely translates into, the revenue growth. And we’ve, in terms of the drivers of the demand, you know, I really believe in both health and agriculture, we have a really excellent set of assets, really differentiated products and capabilities. And one of the things that we’ve been really focused on is investing in our channel and distribution strength to really drive the volume and the quality of sales. And so we’ve made those investments throughout 2023, but really accelerated them in the back half of 2023, and now we’re starting to see those investments pay dividends.
And so, for example, as Darren mentioned, we had our best two back to back quarters in terms of sales growth in the agriculture business as well, our agriculture and consumer goods business. And in our animal agriculture space, we’re starting to really see that high single digit, revenue growth kick in now quarter after quarter. So I think we’ve got a great story to tell, differentiated products and services, now the right investments around channel and distribution, and we should see that actually accelerate month over month as those investments start to really mature and we get through the learning curve on how to sell these products and services and start to see that acceleration in growth. And the last thing I’ll say is, you know, we’ve got an amazing list of our base of customers, across TELUS Business Solutions, across TELUS International, across TELUS Agriculture, and we’re just starting on our journey in terms of driving health penetration our health product penetration, into that base.
And so when we look at it from a B2B perspective, our product intensity opportunity there, goes beyond just telecom services, but obviously, into these great health capabilities. And with the latest health capability of our total mental health product, we just see that accelerating on top of our existing health products and services. So I think it’s a really good developing story, and we’re going to see some nice, steady acceleration as the quarters go.
Darren Entwistle: Zainul, you want to pile on consumer health or do you want to leave it there?
Zainul Mawji: I can do maybe just offer one element and just say that fundamentally, I don’t think our revenue on our revenue profile we can comment on what we think the competitive environment will do or won’t do. What we’re going to focus on is insulating ourselves accordingly with the capabilities that we have that are differentiated and continuing to grow those capabilities whether they’re consumer health oriented or on the back of our home automation capability suite or on the back of our very differentiated OTT offerings. So we’re going to continue to focus on that and in parallel on cost to serve and continue to differentiate our brands accordingly and add more value to customers based on those differentiated offerings that are really unmatched in the market.
And because of our relationship with TI, our speed to market capability and delivery as well as our ability to own those assets and own the IP of those assets is also differentiated relative to our peers and changes the cost to serve profile of offering new services.
Operator: Last question in the queue comes from Simon Flannery from Morgan Stanley.
Simon Flannery: If I could return to the convergence and the bundling question, we’ve seen Verizon and now AT&T really lean into fixed wireless for business and they like the lower usage characteristics versus a consumer product. Now that you’ve rolled out 5G and we’re seeing a lot of interesting business use cases, whether that’s for backup or for tougher to cover locations. It’d be great to see how you’re thinking about that as an extra product to leverage your 5G network outside particularly where you have fiber?
Darren Entwistle: Navin, you want to speak to that as it relates to the B2B component or say not holistically? Navin, go ahead.
Navin Arora: Yes. Thanks for the question, Simon. Yes, absolutely, we’re looking at, how we can bring fixed wireless in for business. You hit the comment bang on because the usage characteristics are different, and also the timing of usage is different. And so that allows us to manage spectrum in an inefficient way as we look to do this. So we are absolutely looking at it. We’re looking at how we accelerate it in relation to where we have PureFibre and other network capabilities. And it’s something that we’ll talk more about into the future.
Darren Entwistle: We’ll start off there, but it’s I think important to point out we’ve been deploying fixed wireless as an access methodology since about 2009. So, a well familiar complement to what we’re doing on broadband wireline and wireless along the way. Thank you, Simon.
Robert Mitchell: Thanks, Simon. Thanks everyone for joining us today. If there’s any follow ups, please feel free to reach out to the IR team.
Operator: This concludes the TELUS 2024 Q1 earnings conference call. Thank you for your participation and have a nice day.
