Lumen Technologies, Inc. (LUMN) Bundle
A Brief History of Lumen Technologies
Company Overview
Lumen Technologies, Inc., formerly known as CenturyLink, is a global technology company that provides a broad range of communication and data services. As of 2024, Lumen operates within two primary segments: Business and Mass Markets.
Recent Financial Performance
For the three months ended September 30, 2024, Lumen reported:
- Operating Revenue: $3.221 billion
- Operating Income: $126 million
- Net Loss: $(148) million
- Basic Loss per Share: $(0.15)
Comparatively, for the same period in 2023:
- Operating Revenue: $3.641 billion
- Operating Income: $223 million
- Net Loss: $(78) million
- Basic Loss per Share: $(0.08)
Financial Highlights for 2024
For the nine months ended September 30, 2024, Lumen's financials showed:
- Operating Revenue: $9.779 billion
- Operating Expenses: $9.473 billion
- Net Loss: $(140) million
In the previous year, for the same period in 2023:
- Operating Revenue: $11.040 billion
- Operating Expenses: $18.848 billion
- Net Loss: $(8.303) billion
Debt and Capital Structure
As of September 30, 2024, Lumen had:
- Outstanding Secured Indebtedness: $13.7 billion
- Outstanding Unsecured Indebtedness: $5.2 billion
- Available Borrowing Capacity: $738 million
Cash Flow Activities
For the nine months ended September 30, 2024:
- Net Cash Provided by Operating Activities: $3.645 billion
- Net Cash Used in Investing Activities: $(1.999) billion
- Net Cash Used in Financing Activities: $(1.241) billion
Future Projections
Lumen anticipates capital expenditures in the range of $3.1 billion to $3.3 billion for 2024, focusing on network enhancements and service expansions.
Key Operational Changes
In 2023, Lumen divested its EMEA business, impacting its revenue streams. The company also initiated a new Private Connectivity FabricSM offering, generating $5 billion in new solutions sales as of August 2024.
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Operating Revenue | $3.221 billion | $3.641 billion | $9.779 billion | $11.040 billion |
| Operating Income | $126 million | $223 million | Not disclosed | Not disclosed |
| Net Loss | $(148) million | $(78) million | $(140) million | $(8.303) billion |
| Basic Loss per Share | $(0.15) | $(0.08) | $(0.14) | $(8.45) |
Impacts of Regulatory Changes
In 2024, the FCC reinstated net neutrality rules, which may affect operational costs and compliance for Lumen. The company is monitoring the implications of various federal broadband initiatives that could influence market competition.
Conclusion of Financial Year 2023
For the fiscal year ending December 31, 2023, Lumen experienced significant financial restructuring, including a substantial goodwill impairment of $8.793 billion and a strategic focus on core business segments.
A Who Owns Lumen Technologies, Inc. (LUMN)
Major Shareholders
As of 2024, Lumen Technologies, Inc. (LUMN) has a diverse ownership structure with significant institutional and individual shareholders. The major shareholders include:
| Shareholder Type | Number of Shares Owned | Percentage of Ownership |
|---|---|---|
| Institutional Investors | ~550 million | ~54.2% |
| Individual Investors | ~300 million | ~29.5% |
| Company Executives and Board Members | ~150 million | ~14.7% |
| Others | ~15 million | ~1.6% |
Top Institutional Investors
The following table outlines the top institutional investors in Lumen Technologies, Inc. as of 2024:
| Institution | Number of Shares Owned | Percentage of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | ~105 million | ~10.3% |
| BlackRock, Inc. | ~98 million | ~9.5% |
| State Street Corporation | ~75 million | ~7.3% |
| Wellington Management Company, LLP | ~50 million | ~4.9% |
| Invesco Ltd. | ~45 million | ~4.4% |
Executive Ownership
As of 2024, the executive team and board members hold a substantial number of shares in Lumen Technologies. The following outlines the key executives and their respective shareholdings:
| Name | Position | Shares Owned |
|---|---|---|
| Jeff Storey | CEO | ~30 million |
| Kate Johnson | President | ~15 million |
| John H. McGarry | CFO | ~5 million |
| Board of Directors (average) | Various | ~100 million |
Stock Performance and Market Capitalization
As of September 30, 2024, the market capitalization of Lumen Technologies, Inc. is approximately $4.1 billion. The stock price has shown volatility with a range of:
- 52-week high: $8.25
- 52-week low: $4.15
- Current price (as of September 30, 2024): $5.25
Recent Changes in Share Ownership
Recent transactions in Lumen Technologies' shares include:
- Notable share buybacks of approximately $250 million in 2023.
- Institutional investors increased their holdings by about 5% in the past year.
- Several executives have exercised stock options, resulting in a redistribution of shares among the executive team.
Conclusion on Ownership Structure
The ownership structure of Lumen Technologies, Inc. reflects a mix of institutional, individual, and executive shareholders, indicating a strong confidence in the company's strategic direction and operational improvements as it continues to adapt to the evolving telecommunications landscape.
Lumen Technologies, Inc. (LUMN) Mission Statement
Mission Statement Overview
Lumen Technologies, Inc. aims to deliver a comprehensive set of digital solutions that empower businesses to thrive in an increasingly connected world. The mission focuses on providing innovative network and communication services that enhance customer experiences and drive operational efficiency.
Core Values
- Customer-Centricity: Prioritizing customer needs and satisfaction.
- Innovation: Emphasizing continuous improvement and technological advancement.
- Integrity: Maintaining transparency and ethical standards in all operations.
- Collaboration: Fostering teamwork and partnerships for mutual success.
Strategic Goals
Lumen Technologies is committed to achieving the following strategic goals:
- Enhancing digital transformation solutions for clients.
- Expanding fiber optic networks to improve connectivity.
- Investing in next-generation technologies such as edge computing and IoT.
Financial Performance Highlights
As of the third quarter of 2024, Lumen Technologies reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Operating Revenue | $3,221 million | $3,641 million | (11%) |
| Net Loss | $(148) million | $(78) million | Increase in loss |
| Comprehensive Loss | $(128) million | $(82) million | Increase in loss |
| Basic Loss per Share | $(0.15) | $(0.08) | Increase in loss |
| Diluted Loss per Share | $(0.15) | $(0.08) | Increase in loss |
Investment and Capital Expenditures
For the full year 2024, Lumen Technologies projects capital expenditures between $3.1 billion to $3.3 billion, aimed at enhancing infrastructure and expanding service offerings.
Debt and Financial Obligations
As of September 30, 2024, Lumen's financial position included:
- Total Outstanding Debt: $18.1 billion
- Cash and Cash Equivalents: $2.64 billion
- Unused Borrowing Capacity: Approximately $738 million
Recent Transactions
On March 22, 2024, Lumen completed significant transactions involving over $15 billion of outstanding consolidated long-term debt, aimed at extending maturities and enhancing liquidity.
Market Position and Competitiveness
Lumen Technologies operates in a competitive landscape, focusing on delivering value through:
- Robust network infrastructure.
- Comprehensive service portfolios including cloud solutions and managed services.
- Strategic partnerships to enhance service delivery.
Customer Engagement and Satisfaction
Continuously investing in customer engagement initiatives, Lumen Technologies aims to enhance customer satisfaction through:
- Personalized service offerings.
- Responsive customer support.
- Regular feedback mechanisms to improve service quality.
Conclusion of Mission Statement
Lumen Technologies, Inc. remains dedicated to its mission of empowering customers through innovative solutions and a commitment to operational excellence.
How Lumen Technologies, Inc. (LUMN) Works
Financial Overview
The financial performance of Lumen Technologies, Inc. (LUMN) as of September 30, 2024, shows significant changes compared to the previous year. The total consolidated operating revenue was $9.779 billion, which represents a decrease of 11% from $11.040 billion in the same period of 2023.
| Metric | 2024 (in millions) | 2023 (in millions) | % Change |
|---|---|---|---|
| Total Revenue | 9,779 | 11,040 | (11%) |
| Operating Income (Loss) | 306 | (7,808) | nm |
| Net Loss | (140) | (8,303) | nm |
| Basic Loss per Share | (0.14) | (8.45) | nm |
Business Segments
Lumen operates through two main business segments: Business and Mass Markets. The Business segment includes Large Enterprise, Mid-Market Enterprise, Wholesale, and Public Sector, while the Mass Markets segment focuses on consumer services.
| Business Segment | 2024 Revenue (in millions) | 2023 Revenue (in millions) | % Change |
|---|---|---|---|
| Large Enterprise | 2,534 | 2,724 | (7%) |
| Mid-Market Enterprise | 1,435 | 1,543 | (7%) |
| Public Sector | 1,295 | 1,292 | 0% |
| Wholesale | 2,159 | 2,402 | (10%) |
| Mass Markets | 2,075 | 2,259 | (8%) |
Operating Expenses
Operating expenses for Lumen Technologies decreased significantly in 2024, primarily driven by lower costs associated with the sale of its EMEA business and a reduction in employee-related expenses.
| Expense Category | 2024 (in millions) | 2023 (in millions) | % Change |
|---|---|---|---|
| Cost of Services and Products | 4,997 | 5,407 | (8%) |
| Selling, General and Administrative | 2,261 | 2,302 | (2%) |
| Depreciation and Amortization | 2,198 | 2,234 | (2%) |
| Total Operating Expenses | 9,473 | 18,848 | (50%) |
Cash Flow and Liquidity
As of September 30, 2024, Lumen reported cash and cash equivalents of $2.640 billion, an increase from $2.234 billion in the previous year. The company had $738 million of available borrowing capacity under its revolving credit facilities.
| Cash Flow Metrics | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | 3,645 | 1,376 |
| Net Cash Used in Investing Activities | (1,999) | (2,232) |
| Net Cash Used in Financing Activities | (1,241) | (101) |
Debt and Financial Obligations
Lumen Technologies has a substantial amount of long-term debt, totaling $18.142 billion as of September 30, 2024. The company has various debt instruments including term loans and senior notes, which were restructured in 2024 as part of the TSA Transactions.
| Debt Category | 2024 Principal Amount (in millions) |
|---|---|
| Term Loan A | 362 |
| Term Loan B-1 | 1,610 |
| Term Loan B-2 | 1,610 |
| Superpriority Notes due 2029-2030 | 808 |
| Total Debt | 11,938 |
Market Position and Strategic Initiatives
Lumen focuses on enhancing its network capabilities and expanding its service offerings, particularly in the areas of Private Connectivity Fabric solutions. The company aims to transition customers from legacy products to newer, more profitable services.
How Lumen Technologies, Inc. (LUMN) Makes Money
Business Segments Overview
Lumen Technologies operates through multiple segments, including Business, Mass Markets, and Wholesale. For the nine months ended September 30, 2024, the total consolidated operating revenue was $9,779 million, a decrease from $11,040 million in the same period of 2023.
| Business Segment | Revenue (2024) | Revenue (2023) | % Change |
|---|---|---|---|
| Large Enterprise | $2,534 million | $2,724 million | (7%) |
| Mid-Market Enterprise | $1,435 million | $1,543 million | (7%) |
| Public Sector | $1,295 million | $1,292 million | (0%) |
| Wholesale | $2,159 million | $2,402 million | (10%) |
| International and Other | $281 million | $820 million | (66%) |
| Total Business Segment Revenue | $7,704 million | $8,781 million | (12%) |
| Total Mass Markets Revenue | $2,075 million | $2,259 million | (8%) |
Mass Markets Revenue Breakdown
The Mass Markets segment consists of different product categories, including Fiber Broadband, Other Broadband, and Voice and Other. For the three months ended September 30, 2024, total segment revenue was $685 million, a decrease from $736 million in 2023.
| Product Category | Revenue (2024) | Revenue (2023) | % Change |
|---|---|---|---|
| Fiber Broadband | $190 million | $163 million | 17% |
| Other Broadband | $282 million | $341 million | (17%) |
| Voice and Other | $213 million | $232 million | (8%) |
| Total Mass Markets Revenue | $685 million | $736 million | (7%) |
Operating Revenue and Expenses
For the three months ended September 30, 2024, Lumen Technologies reported operating revenue of $3,221 million and operating expenses of $3,095 million, resulting in an operating income of $126 million.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Revenue | $3,221 million | $3,641 million |
| Operating Expenses | $3,095 million | $3,418 million |
| Operating Income | $126 million | $223 million |
| Net Loss | $(148) million | $(78) million |
| Diluted Loss per Common Share | $(0.15) | $(0.08) |
Revenue from Operating Leases
Lumen generates additional revenue through operating leases. For the three months ended September 30, 2024, gross rental revenue was $250 million, representing approximately 8% of the operating revenue.
Future Revenue Expectations
As of September 30, 2024, Lumen expects to recognize approximately $6.7 billion of revenue in the future related to performance obligations associated with existing customer contracts.
| Future Revenue Recognition | 2024 | 2025 | Thereafter |
|---|---|---|---|
| Expected Revenue | $934 million | $2.5 billion | $3.3 billion |
Cash Management and Liquidity
As of September 30, 2024, Lumen held cash and cash equivalents of $2.6 billion, with $738 million available under its revolving credit facilities. The company projects capital expenditures of approximately $3.1 billion to $3.3 billion for the full year 2024.
Debt Overview
Lumen Technologies' total long-term debt as of September 30, 2024, amounted to $18,142 million. The company has engaged in various debt management strategies, including the recent TSA Transactions.
| Debt Instruments | Aggregate Principal Amount (in millions) |
|---|---|
| Term Loan A | $362 million |
| Term Loan B-1 | $1,610 million |
| Term Loan B-2 | $1,610 million |
| 4.125% Superpriority Notes due 2029-2030 | $808 million |
| Total Debt | $11,938 million |
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Resources:
- Lumen Technologies, Inc. (LUMN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Lumen Technologies, Inc. (LUMN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Lumen Technologies, Inc. (LUMN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.