Lumen Technologies Reports Decline in Operating Revenue, Net Loss in Q3 2024

Lumen Technologies, Inc. reported a decline in operating revenue for the third quarter and the first nine months of 2024, with revenues of $3,221 million and $9,779 million, respectively, down from $3,641 million and $11,040 million in the same periods of 2023. The decrease in revenue is primarily attributed to declines in voice and other legacy products, as well as the impact of the divestiture of the EMEA business, which accounted for $158 million of the revenue drop in Q3 and $490 million for the nine-month period.

Despite the revenue decline, Lumen achieved an operating income of $126 million for Q3 2024, a significant recovery from an operating loss of $7,808 million in Q3 2023. For the nine months ended September 30, 2024, the company reported an operating income of $306 million, contrasting sharply with the previous year's loss. However, Lumen recorded a net loss of $148 million for Q3 2024, compared to a net loss of $78 million in Q3 2023, and a net loss of $140 million for the nine months, a notable improvement from the $8,303 million loss in the same period of 2023.

Total operating expenses for the three months ended September 30, 2024, were $3,095 million, down from $3,418 million in 2023. For the nine months, expenses decreased to $9,473 million from $18,848 million, largely due to the sale of the EMEA business and reductions in employee-related costs following a workforce reduction of approximately 6% in April 2024, which incurred severance costs of about $103 million.

Lumen's cash and cash equivalents increased to $2,640 million as of September 30, 2024, up from $2,234 million at the end of 2023. The company reported net cash provided by operating activities of $3,645 million for the nine months, a substantial increase from $1,376 million in the prior year, driven by cash payments from new Private Connectivity Fabric solutions and a federal tax refund of $729 million.

Strategically, Lumen has focused on enhancing its network capabilities and expanding its fiber infrastructure, particularly through its Quantum Fiber buildout. The company anticipates capital expenditures of approximately $3.1 billion to $3.3 billion for 2024, aimed at improving network efficiencies and developing new services. Additionally, Lumen has engaged in significant debt management activities, including the issuance of new secured notes and the exchange of senior unsecured notes, which reduced its consolidated indebtedness by approximately $60 million.

Overall, Lumen Technologies is navigating a challenging revenue environment while implementing strategic initiatives to enhance operational efficiency and financial stability.