Spinoff spotlight: Telus International

Article Excerpt

TELUS INTERNATIONAL (CDA) INC. $8.69 remains a buy for aggressive investors. The company (Toronto symbol TIXT; Manufacturing sector; Shares outstanding: 275.0 million; Market cap: $2.4 billion; No dividend paid; Takeover Target Rating: Lowest; www.telusinternational.com) operates call centres on behalf of over 650 corporate clients in 32 countries. It also helps them manage their computer systems and mobile apps. On February 3, 2021, parent company Telus Corp. (Toronto symbol T) sold shares of Telus International in an IPO at $25.00 U.S. a share. It still controls 86.7% of the voting power. In January 2023, Telus International acquired 86% of WillowTree for $1.17 billion in cash and shares (all amounts except share price and market cap in U.S. dollars). Based in Virginia, that firm designs and builds websites and mobile apps for businesses. Despite that purchase, due to the current economic uncertainty, businesses are curtailing spending on Telus International’s services. As a result, its revenue in the three months ended March 31, 2024, fell 4.2%, to $657 million from…