Latest news with #customergrowth
The Independent
23-05-2025
- Business
- The Independent
AJ Bell shares soar amid sharp rise in customer numbers
Shares in AJ Bell soared on Friday as it revealed a jump in customer numbers and hit a new record amount of assets under administration. The investing firm said it added 51,000 customers in the six months to March, a 9% increase to 593,000. Meanwhile, assets under administration rose to £90.4 billion, a 5% increase, mostly driven by £3.3 billion in net inflows. AJ Bell said it had seen similarly strong momentum into April, despite significant volatility in global financial markets amid Donald Trump's trade tariffs. The company said it has seen 'increased trading activity' as customers responded to fast swings on both the stock and bond markets. 'We have repeatedly broken our own records for new customer applications during the recent tax year end,' said chief executive Michael Summersgill. 'This performance has been driven by our low-cost, easy-to-use propositions, excellent customer service and improved brand awareness, demonstrating the benefits of our continued investment in these areas.' The company said revenues for the six-month period were £153.2 million, up 17% compared with the same point last year. AJ Bell shares jumped as high as 10% on the announcement on Friday, after profit and revenue beat analyst expectations. The company said it would invest more money into growing the business over the second half of the year, which means its costs will also be higher. But it said the higher overheads will be 'more than offset' by the increase in revenue. Mr Summersgill added: 'In March and April there was also significant market volatility, resulting in heightened levels of customer activity. 'During this period, we continued to provide great service to our customers and advisers, illustrating the scalability and resilience of our operations. 'Our focus remains on delivering long-term organic growth and continuing to increase our market share.'
Yahoo
13-05-2025
- Business
- Yahoo
Southwest Gas Holdings Inc (SWX) Q1 2025 Earnings Call Highlights: Record Net Income and ...
Net Income: Record net income for the quarter. Return on Equity (ROE): Trailing 12-month ROE of 8.2%. Net Income Guidance: Reaffirmed range of $265 million to $275 million for the full year. Rate Base Increase: $600 million increase in authorized rate base in Arizona. Revenue Increase: $80 million revenue increase from Arizona rate case. Customer Growth: Approximately 40,000 new meter sets added over the past 12 months. Cash on Hand: More than $400 million across the enterprise. Liquidity: Over $1 billion of liquidity available. Operating Margin Increase: $38.9 million increase in utility operating margin. O&M Expenses: Slightly lower quarter-over-quarter O&M expenses. Depreciation and Amortization: Increased due to investment in the system. Interest Expense: Increased primarily due to changes in regulatory balances. Capital Investment Plan: $4.3 billion over the next five years. Rate Base Growth: Expected compound annual growth rate of 6% to 8% over the next five years. Warning! GuruFocus has detected 12 Warning Signs with SWX. Release Date: May 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Southwest Gas Holdings Inc (NYSE:SWX) achieved record net income for the first quarter of 2025. The company successfully advanced its regulatory strategy with constructive outcomes in Arizona and Great Basin rate cases. Southwest Gas Holdings Inc (NYSE:SWX) added approximately 40,000 new meter sets over the past 12 months, indicating strong customer growth. The company maintained a strong balance sheet with over $400 million in cash and more than $1 billion in liquidity. Southwest Gas Holdings Inc (NYSE:SWX) reaffirmed its 2025 utility net income guidance range of $265 million to $275 million. There was a delay in the earnings announcement due to an issue with Centuri's financial statements. Increased depreciation and amortization expenses were noted due to continued investment in infrastructure. Higher interest expenses were incurred, primarily driven by changes in regulatory balances associated with the PGA mechanism. The company faces uncertainties surrounding the impacts of future economic conditions and regulatory approvals. The separation of Centuri remains contingent on favorable market conditions, which could impact the company's financial strategy. Q: What's the current status of your plans to exit Centuri? Has there been any change to interest levels from potential investors in recent weeks? A: Karen Haller, President and CEO, stated that the plan to separate Centuri remains unchanged. The company is committed to the separation and is monitoring market conditions to decide on the best approach, whether it be a sell-down, exchange, or a combination thereof. The ability to file an S-3 now allows for more flexibility in executing the separation. Q: What are the financial implications of the System Integrity Mechanism (SIM) if the settlement is approved relative to your longer-term EPS growth target? A: Justin L. Brown, Senior VP & General Counsel, explained that the SIM represents about 40% of non-revenue producing infrastructure investment in Arizona. Once approved, the company will provide more clarity on timing and project approvals, which will be reflected in future guidance. Q: The PGA balance has moved substantially in recent quarters. Is there any meaningful impact on your ATM issuance need due to the Nevada proceeding or faster recovery of the PGA balance? A: Robert Stefani, CFO, mentioned that the company has sufficient cash balances to support a rapid return of cash. The need for ATM usage will depend on the form of the next separation step for Centuri, as a sell-down could eliminate the need for ATM usage. Q: Has there been any change to Southwest Gas's internal controls or accounting processes in recent quarters due to the delay in the earnings call? A: Karen Haller clarified that the delay was due to an issue at Centuri, which impacted Southwest Gas as a consolidated entity. There have been no changes in controls or accounting processes at Southwest Gas related to this issue. Q: With the influx of data centers and semiconductor manufacturing in Arizona, what are the incremental CapEx investment opportunities and how are you engaging with regulators for timely recovery and alignment with long-term rate base growth? A: Justin L. Brown stated that existing structures and policies are in place to address these opportunities. While current guidance does not reflect material changes, the company will adjust forecasts as firm commitments arise. Q: Is the Great Basin open season binding, and how much CapEx would be associated with it? A: Justin L. Brown confirmed that the open season is binding and will close at the end of the month. The company will have a better indication of future CapEx changes once the process concludes. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
10-05-2025
- Business
- Yahoo
TELUS Corp (TU) Q1 2025 Earnings Call Highlights: Record Customer Growth and Strategic ...
Total Mobile and Fixed Customer Growth: 218,000 net additions, the strongest first quarter on record. Postpaid Mobile Phone Churn: 0.84%, a 6 basis points improvement over last year. TTech EBITDA Growth: 4% increase. Mobile Net Additions: 168,000 total, including 20,000 mobile phone net additions and 148,000 connected device net additions. Fixed Customer Additions: 50,000 net additions. Fixed Data Services Revenue Growth: 3% year over year. TELUS Health Revenue and EBITDA Growth: 12% and 30%, respectively. Global Lives Covered by TELUS Health: Increased by 7% year over year to 76.5 million. Annualized Synergies from LifeWorks Acquisition: $376 million, including $306 million from cost efficiencies and $70 million from cross-selling strategies. TELUS Agriculture and Consumer Goods Revenue Growth: 20% year over year. Free Cash Flow Growth: 22.3% increase this quarter. Dividend Increase: 7% increase, with a target of 3% to 8% annual growth from 2026 through 2028. Net Debt to EBITDA Ratio Target: Circa 3 times by 2027. Mobile Network Revenue: Slight decline due to a 3.7% decrease in ARPU. TTech Operating Revenues: Up 2%, driven by higher mobile equipment revenue and fixed data services. TTech Adjusted EBITDA (excluding health): Increased 3% with a margin expansion of 30 basis points to 42.4%. Consolidated Capital Expenditures: Declined by 19% or $132 million. Quarterly Free Cash Flow: $48 million, a 22% increase. Long-term Debt Average Term to Maturity: Over 10 years with a weighted average cost of 4.4%. Leverage: Elevated at 3.9 times, with a plan to reduce to 3 times by 2027. Proceeds from Non-core Asset Monetization: $66 million. Hybrid Debt Securities Raised: $1.6 billion, with 50% receiving equity treatment. Workplace Options Acquisition: Approximately $500 million net of assumed debt. Warning! GuruFocus has detected 7 Warning Signs with TU. Release Date: May 09, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. TELUS Corp (NYSE:TU) achieved industry-best total mobile and fixed customer growth with 218,000 net additions, marking the strongest first quarter on record. The company reported a 4% growth in TTech EBITDA, supported by strong mobile net additions and record Q1 connected device net additions. TELUS Health segment showed impressive momentum with revenue and EBITDA growth of 12% and 30%, respectively, driven by global expansion and product enhancements. The acquisition of Workplace Options expanded TELUS Health's reach to over 160 million lives covered globally, enhancing its comprehensive suite of health and well-being solutions. TELUS Corp (NYSE:TU) announced a 7% dividend increase, reflecting its commitment to delivering superior value to shareholders and extending its dividend growth program through 2028. Mobile network revenue declined slightly due to a 3.7% decrease in ARPU, reflecting ongoing competitive pressures and lower roaming. The wireless service revenue showed a decline, with ARPU under pressure, indicating challenges in balancing volume versus pricing in the competitive market. Leverage remains elevated at 3.9 times, although TELUS Corp (NYSE:TU) is committed to improving its leverage ratio to 3 times by 2027. The company faces challenges in scaling its IoT and machine-to-machine business, particularly in health and agriculture sectors. TELUS Corp (NYSE:TU) continues to operate with a Dividend Reinvestment Plan (DRIP) discount, which may cause dilution to shareholders until it is fully removed by 2027. Q: What is driving the strong revenue and EBITDA growth in TELUS Health, and how do you see it evolving? A: Navin Arora, Executive Vice-president, explained that TELUS Health's growth is fueled by smart acquisitions, strong synergy realization, and enhanced go-to-market strategies. The recent acquisition of Workplace Options adds value with its global reach and complementary products. TELUS Health is reported as a separate segment, and future monetization opportunities will be considered as the business evolves. Q: Can you clarify the financial structure of the Workplace Options acquisition and discuss TELUS's wireless service revenue performance? A: Doug French, CFO, clarified that the $500 million acquisition includes $100 million of assumed debt, with TELUS retaining over 50% control. Darren Entwistle, CEO, acknowledged dissatisfaction with wireless service revenue performance and emphasized the need for improved product bundling, loyalty, and leveraging AI for better revenue management. Q: What are the key factors supporting TELUS's three-year dividend growth plan, and how does deleveraging fit into this strategy? A: Darren Entwistle highlighted TELUS's focus on EBITDA growth, reduced CapEx intensity, and a structured deleveraging plan. Doug French added that monetization initiatives and operational efficiencies will support the dividend growth, with potential for earlier removal of the DRIP discount if deleveraging progresses faster than expected. Q: How is TELUS leveraging AI for cost reduction and growth opportunities, and what are the prospects for an NCIB? A: Tobias Dengel, President of TELUS Digital Solutions, detailed AI's role in driving efficiency and revenue growth, citing examples like agent training and customer service enhancements. Doug French indicated that an NCIB could be considered post-2027, depending on capital allocation priorities and balance sheet strength. Q: Is TELUS Health's disclosure a step towards unlocking value through monetization, and how is the competitive environment shaping up in wireless? A: Navin Arora stated that TELUS is open to monetization opportunities for TELUS Health when the timing is right. Zainul Mawji, EVP, noted that TELUS is focusing on aligning market offerings with value and AMPU focus, observing some similar discipline among competitors. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
