Q4 2024 Lumen Technologies Inc Earnings Call Transcript
Key Points
- Lumen Technologies Inc (LUMN) reduced its debt load by $1.6 billion in 2024 and sent redemption notices for an additional $200 million.
- The company secured $8.5 billion in closed sales with major tech companies like Microsoft, AWS, Google, and Meta, enhancing its position as a trusted network for AI.
- Lumen achieved over 15% year-over-year sales growth in North American enterprise channels, with significant growth in IP and ways.
- The company delivered more than 500,000 Quantum Fiber enablements, achieving over 90% year-over-year growth in fiber net adds while reducing expenses.
- Lumen's unified network architecture has enabled 85% of new Ethernet and IP data service sales in major metro markets, reducing delivery time and implementation costs significantly.
- Total reported revenue declined by 5.3% to $3.32 billion, impacted by divestitures, commercial agreements, and the sale of the CDN business.
- Adjusted EBITDA for the fourth quarter of 2024 was $1.052 billion, a decrease from the previous year, with a margin decline of 40 basis points.
- Free cash flow was negative $174 million, primarily due to the timing of cash from PCF deals.
- Mass Markets segment revenue declined by 6.3% to $670 million.
- The company faces challenges with legacy product declines, particularly in TDM-based voice and VPN, impacting nurture and harvest product revenues.
Greetings, everyone, and welcome to Lumen Technologies fourth quarter and full year 2024 earnings call. (Operator Instructions)
As a reminder, this call is being recorded today, Tuesday, February 1, 2025. Your speakers for today are Kate Johnson, CEO; and Chris Stansbury, CFO. I would now like to turn the conference over to Jim Green, Senior Vice President, Investor Relations. Please go ahead, sir.
Good afternoon, everyone, and thank you for joining Lumen Technologies fourth quarter 2024 earnings call. On the call today are Kate Johnson, President and Chief Executive Officer; and Chris Stansbury, Executive Vice President and Chief Financial Officer.
Before we begin, I need to call your attention to our safe harbor statement on Slide 1 of our fourth quarter 2024 presentation, which notes that this conference call may include forward-looking statements subject to certain risks and uncertainties. All forward-looking statements should be considered in conjunction with
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