Lumen Technologies (NYSE: LUMN) has announced its financial results for the third quarter of 2024, highlighting sustained progress in its operations and an increase in subscriptions to its Quantum Fiber optical fiber business. Additionally, the company has strengthened its infrastructure for the artificial intelligence (AI) economy, positioning itself as a strategic partner for leading technology companies.
Growth in Private Connectivity and Digital Services
During the quarter, Lumen reported an increase in sales of its Lumen Private Connectivity Fabric (PCF), a system that enhances the company’s flexibility and liquidity. This advancement is complemented by a growing adoption of its network-as-a-service offering, which, according to Kate Johnson, President and CEO of Lumen, responds to the demand for robust network infrastructure to execute AI strategies: “Companies are realizing that every AI strategy requires a network strategy, and Lumen is here to help them,” Johnson stated.
Financial Performance and Revenue Adjustments
Lumen reported total revenue of $3.221 billion, a 12% decrease compared to the third quarter of 2023. The company also experienced a net loss of $148 million, widening from the $78 million loss of the previous year. However, the company emphasized that the sale of its business in Europe, the Middle East, and Africa (EMEA) has allowed for significant adjustments to its revenue figures, as these funds will not recur in future periods.
In terms of segment revenue, the results reflect a decline in the large enterprise sector and the wholesale segment, with decreases of 8% and 9% respectively compared to the same period in 2023.
Improvement in Cash Flow and Cost Reduction
One of the highlights in the third quarter was the generation of free cash flow of $1.198 billion, a substantial improvement compared to the $43 million generated in the same quarter of 2023. This figure was achieved after deducting $16 million allocated for special expenses.
Lumen also increased its adjusted EBITDA, reaching $899 million excluding special items, a figure slightly lower than for the same period in 2023. The company maintains its adjusted EBITDA outlook for the year between $3.900 billion and $4.000 billion.
Outlook for 2024 and Commitment to Digital Expansion
For 2024, Lumen projects continuing to strengthen its presence in digital infrastructure and AI. Johnson noted that Lumen is focused on being a key player in the expansion of the internet and the AI economy, facilitating companies’ ability to leverage next-generation network and digital services.
Lumen remains optimistic about its progress in private connectivity and its network solutions for AI, betting that this focus will allow it to stay relevant in a rapidly evolving market as it transforms its business model toward a digital future.