RE:What will pay the divvy next quarter?zalmonella wrote: Waht's worrisome is that free cash flow is steadily shrinking. Telus has made up from retained earnings and other capital sources in tne 2 previous quarters. How long can that go on? Divivies costs them $1.1B a year but earnings are shrinking and other costs are rising, and now it's not getting anythign form TIXT either which is seriously in the doghouse for the next couple of years.
How long before T.T cuts the divvy by 50%?
How is Free Cash Flow steadily shrinking?
FCF was $777M in 2021, $1.274B in 2022, and was originally guided to be $2.0B in 2023 before it was revised to $1.5B.
There are also a number of one time costs impacting FCF in 2023 such as a $100M payment component to ratify the union contract and $475M in extra restructuring cost to layoff staff that will end up yielding $325M in annual opex savings.