TELUS International (Cda) shares plummeted early morning on Friday after its parent company cut outlook for the full year on weaker-than-expected performance at its Telus International unit.
At 9:35 a.m. ET, shares trading in Toronto were down nearly 29% at 13.76 Canadian dollars ($10.49) and the stock trading in New York was down 30% at $10.36. Both Toronto and New York shares have reached 52-week lows. Parent Company Telus also saw its shares fall about 2.4% to C$24.94.
Late Thursday, the Canadian telecommunications company trimmed down forecasts for 2023 operating revenue growth to 9.5% to 11.5%, down from a prior forecast of 11% to 14%, as well as adjusted earnings before interest, taxes, depreciation and amortization growth to 7% to 8%, below prior views in the range of 9.5% to 11%.
Telus cited near-term challenges to consumer demand for its technology services, including at Telus International, its unit focused on artificial intelligence and content moderation. The company has lowered its guidance for Telus International, now predicted to post full-year revenue of $2.7 billion to $2.73 billion and adjusted Ebitda of $575 million to $600 million.