8/18/2023 0 Comments Lumn tickerI know you'll be shocked to hear me say that a relationships. We do see it as a big opportunity and largely because the Lumen network is differentiated, and that's also why the - these IT companies, they recognize and we believe that, first of all, we have one of the world's best fiber network. Why do you believe that Lumen is well positioned for this opportunity? What are the key ways that your network is differentiated to provide edge solutions? And ultimately, why are these leading tech and IT companies partnering with Lumen? In order to pursue this opportunity, you've announced partnerships with IBM, VMware, SAP and Zoom. And I actually want to start with one of the big growth opportunities that you said you see emerging for the business, which is edge compute. Well, listen, that was a great overview, a great way to get started. As I said at the outset, these are exciting times for Lumen, and Brett, I look forward to the discussion today.Īll right. We still believe the target that a couple of is great, but we are willing to let that extend as we invest in our growth. Looking forward, we're comfortable allowing the time line to achieve the target leverage to extend as we work through this investment cycle. But I think we've also been clear that the dividend is an important part of our capital allocation strategy and a very effective way to return value to shareholders.Īnd lastly, through a mix of pay downs and refinancings, we reduced our indebtedness and our annual cash interest expense substantially. We certainly continue to invest in growth. As I said a couple of minutes ago, we believe our shares are undervalued and thought that was an appropriate action for the Company. On the second quarter call, we also announced a $1 billion share repurchase plan. We still have a lot of work ahead of us, but I'm pleased with what we've accomplished in transforming Lumen over the past couple of years. And the Lumen platform is really a new way of interfacing with and delivering services to our customers. Many of our transformation efforts culminated in the launch of the Lumen platform. We continue investing in EBITDA and revenue growth through our ongoing transformation.Īs you look at our EBITDA and customer satisfaction results over the past several years, I think we've done a great job transforming the business, and we continue to do so. And with about 15 million urban/suburban units in our retained markets, we think, there's a lot of opportunity for growth. Penetration rates, ARPU, churn, NPS give us confidence across the board with our mass market business. With around 2.5 million homes passed within our existing fiber footprint, we have good reasons for our confidence. As a reminder, Quantum Fibers are fiber-based mass market business that we've already launched in many of the 16 states will retain after the sale to Apollo. We've been investing in growth in our consumer and small business customers through Quantum Fiber. We've also been investing our time and energy and money and growth through the partnerships that we just established. I won't go into the details here, but I think the valuations go along to reinforce what we've been saying about the sum of the parts of Lumen and why we think we're undervalued.Īnd we believe in the business, and we continue to sting in growth, growth in our enterprise business through investments in edge cloud, managed technology services, adaptive network and connected security services. We announced two transactions, the sale of our LatAm business to Stonepeak for $2.7 billion, roughly a 9 times multiple the sale of 20 of our ILEC states to Apollo for $7.5 billion, a 5.5 times multiple. We had a very busy quarter in the second quarter, and I think it's exciting times for us. Well, listen, usually, we jump into Q&A, but I think you actually had a few things you wanted to say, just to get the ball rolling. I look forward to next year being in person. I look forward to this conference every year. And it's my great pleasure to welcome back to the conference this year, Jeff Storey, the CEO of Lumen Technologies. Welcome back to the afternoon of the second day of our 30th Communacopia. ( NYSE: LUMN) Goldman Sachs 30th Annual Communacopia Conference Septem12:25 PM ETĪll right.
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