Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings. And welcome to Lumen Technologies Third Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded, Wednesday, November, 2022.

It is now my pleasure to turn the conference over to Mike McCormack, Senior Vice President, Investor Relations. Please go ahead.

Mike McCormack

France. you, Thank everybody, the afternoon, you joining for And Technologies and third to Lumen call. quarter us good thank XXXX earnings

on Financial Officer. are today Executive Stansbury, the President Vice me Executive Chief Chief Chris Officer; Jeff and President and and Joining Storey, call

on I presentation, statement uncertainties. which include this call our two we notes Safe slide begin, attention forward-looking our third should the be with statements two conjunction statements may to forward-looking and to that All need Before of certain statements your in our call factors to in Harbor and slide XXXX risks SEC risk cautionary subject quarter conference filings. considered the on

be referring measures press non-GAAP financial earnings to most release. reconciled be comparable certain in that found our the We'll can to GAAP measures

today addition, of over costs of all Investor I'll the website. can metrics In items our turn in as earnings Relations for discussed Lumen the exclude on material, Jeff. certain detailed that, section be found which With the to special call

Jeffrey Storey

Thanks, for joining Mike. us. thank you and afternoon, everyone, Good

As my new as want I CEO. CEO. as call last starts Kate begin you today's Kate Monday. is Lumen's to by our call welcoming this know, Johnson

exceptional great in things an to she will Within the is strong she to join with the customers her have think I we are commitment high have a of expectations skills, nature. pragmatic excited direct leader Lumen, all company and accomplish.

and broader of baton industry puts have dedicated new growth foundation have market, obviously and long-term the we the we place I not our value. a in its have to for that the the are to great shareholder creating company. we in position times leadership quite a refreshed we objectives in in would on in team deliver energy confidence accomplished pass built, driving and have the of And Lumen have that all These lot, accomplished very dynamic Kate our and while I liked,

In exciting to want three. since the was this of five the been team, want call, seen challenge extraordinarily all rise to our of have I At commitment I how say our during Level and them pride employees, I whom proud customers. as I've formed and acquisition Lumen and yet about with years other am a of to my final tell of outset team. journey challenging, the word to the a confidence, days following CEO, Lumen you our every on each

all response continue or and doing the the to The with notice. with days' needed first few that first Lumen much we to attacked were that tenacity that We now emergency and Throughout and augments COVID. the environment turned own XX,XXX their customers know from they so remote many their determination. workforces. employees home, work example employees we the XX,XXX few more had in just performed weeks, had stayed than a longer we Together the is challenges we within but jobs, safely certainly out for our They pandemic, hoped, their throughout.

$X.X large is integrating efforts, remarkable. enhanced digitally of over appreciate our we excellent experience think company. five did close I accomplished savings. they I that it really two customer As last the businesses and realized all our the the Between in two they've and work years, transforming synergies transformation to and billion

for the an entered clustered arrangement completed to EMEA that business densely more into billion $X.X high growth Mass focusing the business we $X.X they on summer, LatAm of And In we our $X.X transaction, billion completed the Markets proposed exclusive sale ILEC for have transaction. announced our This October, they billion. markets. cope today and

were XX% customers our work for Ian. and acknowledge Internet of in to the connected of of on their three focus team's customers and example aftermath talent weeks. our recent Hurricane within online want their delivering, back our most the high-speed As I

thoughts great foundation it's not are and to who all forward. Digital I'd affected efforts a transformation this by our for talk a and destination, like is event. remain we of laid going That's customers transformation employees our journey. work. the digital Our business and more our with specifically about but

I'm very significant pleased and simplicity we've the business. our made in with driving automation strides into

We and easier our are are have the to now experience capabilities. way interact customers with, and evolving business do greater efficiency our with

customer customer e and Fiber the of demonstrated continues enterprise our both to as Quantum NPS high is very than improve better our and upper scores base. Our ever end experience by for customer and

we're Although well. not there show our customers with yet where mid-market clearly want results as our progress be, making to we

the As I accomplishments team incredibly more and proud I'm do, to to our their much far. so all say time, have we of

our is the the the profitability but of importance driving growth our transformation delivering efforts of customers overstate grow want cannot we these focus, principal and efficiencies line Top our experience we need the in to business.

want First, our the time to spend today's to announcements two we'll some does business. made I and of the But EMEA on perspective offering capital third we today: discuss Modifications he regarding details announcements my our that, big policies before the allocation quarter.

time for will Chris' remarks reserve We after your questions.

right want allocation the this big First, carefully our today, are is be considered we Earlier that aligned announced and dividend we decision on and This billion is for believe decision Board clear to a I we year instituting the that that obviously buyback our program. one we up eliminating share long-term the Kate, business. have discussion. action. the are two to $X.X I an capital

longer-term share are to of plans dividend value benefits free significant capital to and growth the balance The for our our sheet from repurchases. cash ability our through our reallocating unlock use

capacity remove and and and key our about has than Growth fund ever. growth new have invest business. clearer you may questions to will in always our the should ability that our the be to makes been policy of this our growth any to decision First continue foremost, imperative

the to aligned questions to circumstances. appropriate an same mechanism. key reviews value shareholders approach dividend. value believe Lumen, to our the also Returning remains You dividend said that priority response about a But the asked is is said questions. delivery current we've regularly Board the for whether And in frequently we've generally and we that thing your

When we announced announcement is output rather payment of year, the transaction dividend. Xrd, that assess the assessment. share in the reflects last of October value that market today's policy repurchases Board of said transaction. that that realized the ILEC completed We transaction long-term dictates wake on allocation $X.X believe creation the shares through a The than our and of our we capital that would the billion value current the better specifically

to to today's pay up today's at believe yields. shares and dividends and year As two to billion I it prices have said, at authorized program, $X.X an more we attractive is retire

case. We long value is at today's a delivery, as stock the supported have dividend good that longer for the price, no vehicle but

repurchase We expect of the the shares program. to life opportunistically over

promises Although greater over provides maturities what flexibility also in several increasingly the market. dividend be our the unpredictable years next are debt our credit company manageable, an of very elimination to the

Over leverage growth than most beyond. debt the reducing as sheet, favor and by billion eliminating source a interest and annual significantly maturities not in balance more That we billion expense last five years, improved we to more long-term cash for $XX have extended and using do capital. XXXX said, principal $X our than

of of of and a Again, is great flexibility company this our interest in believe provides solidly is long-term we shareholders. deal in and current big and that financial which spent decision growth, time, a the best its the we shores circumstances, on increased our foundation up

business today cover Colt of the for me for sale the Let on entered announced proposed the of to announcement. EMEA some an EMEA our have details into We billion. we that $X.X exclusive arrangement

and business, in This and Lumen's contracts. Lumen's represents a for created the very shareholders. value substantially of approximately multiple attractive EMEA our we've are all times of associated XX additional sale network assets commercial for EMEA-based Included

respective into local allow are markets. us entering also partnership access a and customers to strategic other's in will enterprise networks Colt connectivity requiring to long-term Lumen each serve that our

an As we very moving with partner is Brightspeed, to excited about our believe need serve we and Cirion did excellent Colt creating the be us. I'm partner forward. and this to will transaction customers important exceptional

Lumen the divested for As was the and our the in areas to markets and the growth businesses. the in EMEA key focus our and we've valuations partners case attractive assets receive investment announcement establish LATAM ILEC operations, the these allows transactions, where in excellent

to proposed early close regulatory this in late sale approvals. XXXX pending customary expect We

this work at overstate transitioning both tremendous on weight which would I conversion. states transaction, the difficult teams minute XX operating these environment. team the on the quick A folks in earlier like took to It closed quarter. did Brightspeed to lift be to Brightspeed our Brightspeed the acknowledge supporting take to Brightspeed's a would heavy

their investment to in deliver which things. and great difficult strong the to team. high-speed they markets, management begin a want do of services as example greatly wish our I benefit will from It's these Brightspeed their journey to ability best fiber and complex

I most Lumen is details Before three quarter, of to a company's as one how to history, want and networks. Chris world's of coming take share Level marked CenturyLink I to on for advanced creating turn in minute over together of similar Kate's it a my to and our some view the moment leadership. transition The we positioned critical the largest,

now data cloud, customers, And of knows invested built into have transform what most the we collaboration enterprise enabling to offerings network core we've our us have sophisticated meet Edge of enhanced central power Cloud. centers, solutions. the Lumen, range and communications upgrade networking service the In our and platform of many with a more the needs a recently security that everyone Lumen offices as and further allows

deep powerful growth We The machine-to-machine interacting these with with capabilities Lumen a network of believe like for businesses that or is for foundation than capabilities leader robust our been increasingly opportunity and market has calls market set e-mails. growth complemented customers' the early the significant. phone and fiber an via to orchestration, I be the adjacent applications rather laid in have a is still to stages of

in footprint our last Markets platform. the Fiber year. number over we enablements new delivery investment quarter We've per the ramped On our the service Quantum of all-digital doubled Mass side, have and

or let not yet we be So the me build we of expect want. pace at clear, are

and labor to seen. will the overcome our inflationary ramp supply chain, We and we've constraints continue enablements

can markets the focusing supporting we Quantum We have clusters of the of clusters all on reach strong approach where best maximize is Fiber our communities investments significantly conviction urban the with and and those dense offering. expand our create within to growing

of the serving the As are XX business, will business over focused very Chris our today's legacy a rural ILEC LatAm in With have assets penetration of the to on divestiture states, we've optimizing the footprint. divestitures business, EMEA on customers, be mostly been invest, that Colt divestiture we the we customer extended driving ability share, and leader. which market focus to opportunities in announcement grow consistently our and of the

significant base with we new flexibility to optimize, value-accretive allocation These program. opportunities. and continue growth our together share strong are to We sheet company expect changes provides to making repurchase a transactions, today, balance maintain focus capital with in and our opportunities, invest align our execute the growth asset the on

all AI history, are We at of and and point world's capital, with Lumen believe the business turning work platform connectivity. positioned how of for With technology. Lumen's I human where assets, a some live for world success consumers delivered and society evolving business. a of will transform is as in rapidly in well and strongest such and a modern the operations the for today's data needs

making like of years. Lumen company, old. past our having the the I building company. obviously the of feel five improvements company. merely integration of and approached led new how of the We've one a the has be team proud not been founders That's to not, I'm transformation during team incremental the but I'm

the take and path bottom line I'm next Lumen person level Kate, very toward to and welcome growth. is believe right to the our top she and continue excited line to

I our over forward Now as Chris? shareholder of success. with to the turn call third With quarter in Lumen's continued Chris more that, you, a discuss look results to I'll like all detail. to

Christopher Stansbury

to for Jeff, start and made everyone. the significant has he Jeff its you, and good contributions Thank want predecessor companies. I to recognizing Lumen afternoon, by

and XXXX, times business announced since the mentioned, today nine an EBITDA, to sale into business for Jeff merger arrangement the that our of $XX times Colt billion, X.X for entered we LatAm three Level for business exclusive have sold our approximately have reduced approximately in we As EBITDA our for $X.X ILEC EMEA proposed about sold debt by billion.

marks of our growth. profitable drive one approximately for I and entire multiple the a Jeff when importantly, represents year revenue I Lumen speak we positioned attractive very family thank transforming our you. company as say, progress EBITDA, most has times Jeff, great know to well business. XX I This of This in

ILEC completed and much XXXX, During we the both LATAM our divestitures. larger

team are next technology years leadership, As tremendous just to excited in journey. and step help of to we join our She our learned Lumen foundation brings leadership drive created experience experiences Jeff's have teams Kate on deep honor the skills and the has over days. a the the under few

about that As process optimization, you Board ongoing an portfolio regularly. it think the evaluates is

today, maximize value, to will is evaluate the highlighted by goal shareholder and portfolio-related to Our opportunities. future EMEA we continue announcement

As to products of any Monday, thoughts joins or may us needs and and assets, on you as she she know, related deem our any her Kate well as develop portfolio that will assets nonstrategic. within products

when will recently results. a report scope a quarter, historical to impacts provide II Moving a on more and you CAF size items pro sharing our forma our fourth that from LatAm of financials this business models. of our new the we we're ILEC of as excluding financials, direct new the The divested few business quarter view our help dictates as align wholesome your reporting, product reporting, we to and closed divestiture view pro well margin including forma by

to deal-related Let as on as closed well model XXXX thoughts, discuss me macro impacts. some some move

face continue with the are through all these actively inflation. to We is cost facing and are the we challenges headwind, labor macro chains and key to of working are and strained Supply headwinds, initiatives. we address other impacts reduction

to those inflationary with year estimate our closed, reenergize in But XXXX that our now Brightspeed. $XXX end related low year we million Cirion of impacted expect we our EBITDA we adjusted of be to and approximately up the end that towards transformation we Recall will EBITDA digital as will guidance said, efforts We stood by That our the slowed efforts pressures. range. transformation. some transactions full

Before discussing provide of as I jump-off we third near a calibrated point the XXXX. would quarter to like more close results,

received won't recur combine would XXXX, $X.X approximately XXXX, business, you If the billion. the the in business ILEC divested we total and II EBITDA LATAM in XX-state which benefits the be CAF impact

results. there II-related provide will future XXXX if will releases, are quarters and when our quarter more CAF reserve update detailed we We report guidance additional in any we you fourth

summary I quarter. of to With financial the move will that, our third

October very We the received we divestiture the have billion mix, and and cash strategic $X both approximately quarter to These of improve focus, net LATAM divestitures proceeds. X. are discretionary on the divestiture closed pleased third revenue in our our ILEC

$X.X expect active the Brightspeed in a our proceeds of billion in tendering Also closing in we debt the As as been that I you just transaction, approximately and know, to the we've reduction mentioned. conveyed and cash close to the overall upon market year. addition for debt recall is debt net we ILEC that

approximately be during of and which tax be that guidance included XXXX, overall to results. our will report tax these when taxable these in Also to This $XXX fourth impact with you aware of to transactions a XXXX caused quarter share for million billion event first we half we cash expect the expect tax the related to we pay transactions. $X

divestiture, currency in the have historic the benefits As we LatAm results, I we review of excluding CAF well fourth our as business and Using year-over-year our overall the third declined want our XXXX, adjusting a that constant X% support. financial mentioned, that quarter in sale to for I approximately schedule, in quarter and revenue correctional provided facilities pro the highlight forma and results, II of of sequentially. as the our of impact X.X% basis trending as as business

quarter release comparisons when We margin. Mass first this and continue in to program by year-over-year billion XXXX will be for impacted year. third that in CAF XX.X% in reserve CAF through EBITDA first sequentially. Recall of and the $XX subsequent quarter the that the X.X% adjusted the of of and XXXX quarter million II adjusting II X.X% CAF ended $X.XXX reported declined Markets a II year-over-year generated

the When X%. adjusting for revenue On earlier, declined mentioned I items revenue basis, was a XX.X% down year-over-year. reported

cash Our third flow million $XXX the for free quarter. was

during dividend million. quarter Our $XXX paid the totaled

paid As dividend, quarter. Jeff discussed, there decided so the our our will Board has dividend not eliminate to a fourth be during

reducing Additionally, interest $X by past billion. five we debt cash debt and approximately the by forma by annual $XX net have over year-to-date approximately billion reduced years, pro billion $XX about gross our expense

a at to discuss will a basis. I our detailed on more look pro results Moving revenue, forma on

year-over-year $X.XXX quarter X.X% Our to declined revenue a billion. total on basis third reported

in declined year-over-year our correctional mentioned constant X%. I and of declined two revenue segments, As earlier, business X.X% to year-over-year Within adjusting the our business, revenue billion. $X.XXX facilities for sale key currency

business basis, our adjusted which Mass our X.X% excluding enterprise business is revenue decline year-over-year. channel X.X% billion. we revenue revenue and revenue X.X% $X.XXX segment declined cash. year-over-year declined Wholesale an grew This declined likely X% On is Within wholesale, for a Markets will to over time year-over-year. manage channels, year-over-year. that when

declined basis, On revenue year-over-year. an adjusted channels enterprise X.X%

the last we declined and the enterprise forward. legacy to revenue our X.X% of iGAM XX further revenue and continues expect to divestiture improve to exposure going state voice Our year-over-year. closing other ILEC mix month improve, revenue

results year-over-year. a XX.X% year enterprise revenue the was year-over-year. the that FX adjusted impacted revenue in impacted major iGAM $XX currency, a X.X%. year-over-year negatively related by X.X%. channel enterprise enterprise broadcast was public a large down declined includes sector onetime revenue constant declined by was basis, million our revenue third in an headwind Large ending of this event. In prior the business, On and large beginning Remember were quarter. at contract to

quarter both with was Large Defense. US improving trends sector, and XXX we've contract year-over-year sequentially, significant with of yesterday's decline wins the of Enterprise points the over including and the the basis strongest quarters, few within Public rate our improved Public of Excluding sector, channels, enterprise revenue performer XXXX. had since last Department year-over-year Within first announced

won, once we convert the network. to services ramp existing reminder, but as revenue the these slowly Lumen are a contracts As long-lasting, is

quarter by impacted business. to divested our we was model fourth facilities comparability revenue year-over-year that correctional be for in our And quarter the million. $X XXXX received aware quarter benefit for Large final reference, the Enterprise, fourth will of be you the As it related

a year-over-year, since XXXX. of XXX X.X% points basis significant declined Enterprise first improvement Mid-market quarter

and discussed, long-term. we we segment expect As over product our believe this serves set the we well growth

We and channel, opportunity in are our especially customer recently on this provides retention, an for further improvement. seeing benefits Lumen Marketplace launched

As forma LATAM, changes our of adjusted basis better business I I performance. provide our cycle product percentage sale to view to for reporting, will life exchange reference correctional underlying facilities our the the move business pro new on a and foreign of a of normalize to impacts

declined segment, XX% saw represents quarter. Grow approximately the VPN the third quarter. quarter. services. Nurture and We Grow third segment about was approximate products this Ethernet. our year-over-year direct of in business revenue business carry revenue this grew year-over-year products decline X.X% XX% IP quarter. represents approximately and we in an X.X% margin cloud The carried Nurture direct in margin now driven of strength by now and XX% an our and XX%

increases the Harvest products revenue our year-over-year Price declined had X.X% impact rate. third quarter. positive on decline in a

Our only and been manage customers manage to to hard which life a rate lower within Harvest decline recently not set, extend helping this team to also formed back Nurture to but products, these of products. is to the working product of Grow

of Recall our X.X% of quarter. and declined the that in to cash fuel now generates an third margin this products our revenue Harvest quarter. initiatives. and direct an our XX% approximately business carried important growth segment Harvest business represents Other part is XX% approximate year-over-year

these to other products. fluctuations tends Our to revenue nature product the due experience of nonrecurring

in digs life keep manage in opportunities cycles to team our our products. As cycle Harvest this products we their through invest strong you and look cash in life with to flow trends mind growth that at drive fluctuate will as reporting, continue product

on to Markets. Mass Moving

I earlier, mentioned X.X% sequentially. declined Markets and total As X.X% revenue Mass year-over-year

the revenue. Markets quarter, Mass and third grew Mass approximately footprint of XX% our Markets RemainCo broadband by XX% approximately year-over-year, revenue represented in Our XX-state fiber within

revenue our Also and to voice nearly sale, improved year-over-year. close XXX other note, points exposure the basis services with by has legacy ILEC our of

the locations total our XXX,XXX XXX,XXX were enabled bringing approximately XX enabled with quarter, to in X the million XXX,XXX, XX the September total During of approximately approximately routine SellCo retained footprint. states, in locations states of with the as enabled total enablements in those locations

permitting significant a have work the hard this been as labor for locations third-party year. process Enabling us well and is headwind as supply

to important micro-targeting internally to are up as we While year-to-date, we that our is from new factory enablement approach. pacing we with pivoted a it note stood not satisfied a market-based

end-to-end from includes and finally This engineering, to process an to planning construction enablement.

We us this those and have will we learned work as serve to a well process continue on build. lessons Quantum lot through

within pivot on strategy. Quantum of the a last quarter in speed approach continue our to we plant and retained total Quantum the XXX,XXX, of $XX, was eight our ARPU This enterprise-grade brings solutions services states. recently with During adjust approximately states our up-speeding market-based go-to-market from cost-effective customers reported a added as symmetric capable solutions, WiFi and quarter, to X,XX,XXX opportunities basis, Fiber improvement offerings, XX,XXX going subscribers and see security expansion XX Fiber subscribers delivering an launched to forward. we our further with in-home Multi-Gig ARPU adoption we of with the retained the up gig enhancements the

states of build. of highlighting broadband XX, accelerate we copper our the XX%, significant was September penetration Quantum in our subscribers As the legacy as XX opportunity retained Fiber share-taking

Within penetration penetration added. our Quantum footprint, new business. expect market rate our higher we than the at a our XX%. an of footprint, Fiber same customers expanding math stood as addressable we expand just are the we But fall This as approximately to is at expand

approximately this our penetration XX-month we our an XX-month next We believe and with Our for quarter rate. Quantum penetration the XXXX expectations will penetration update Fiber penetration vintage strongly gains. at supports provide XX% was mark, longer-term ramp

Quantum our score service an all-digital, is with indication delivers. RemainCo Helping Quantum within simple XX center supporting was and no prepaid Quantum Our quarter, an Fiber greater of Fiber this contracts. that quality, scores. multi-gig that very and NPS again Fiber the volumes features capable, reduce than NPS strong product superior positive value call pricing

not have changes customer any environment monitor We customers, payment in impacting how discernible patterns. our we economic continue to observed the is and

EBITDA. adjusted to Turning

of $X.XXX $X.XXX the third billion forma to quarter. pro was ago in year For adjusted the XXXX, EBITDA compared quarter billion

have transformation and to we opportunity the OpEx for initiatives. LatAm ILEC cost divestitures, we now and from in resources addition to earlier, cost we investments both return pressures are seeing our to our that We drive mentioned transformation see I savings closed As more inflation growth.

XX.X% related to pro of Special business. quarter of America quarter were million $XXX third million sale gain a on the our Latin flow to were totaled expenditures items of this million. cash of third generated free $XXX basis, XXXX $XXX quarter million. in and margin year quarter when the of a period. the of for XXXX, $XXX company forma the the ago compared benefit XX.X% Capital XXXX primarily On a third In the

on financial Moving our XXXX to outlook.

are $X.X We capital our of now in metrics. billion the to year guidance $X updating several for billion the expect full range for We expenditures XXXX.

As $X.X a result, we are raising to full XXXX. to our free $X.X cash year flow billion the for outlook billion

adjusting expect and are $XXX also We year expectation compensation for million for our expenses stock-based now full approximately XXXX. the

$X.X mentioned two-year well. decided through simultaneously headwinds and managing As our plan. dividend macro to our In previously, an Board to the has closing, repurchase eliminate up team authorized share has billion, is

We look but us continue our miss leadership, Monday to joining as will Jeff's transformative Kate we on forward journey.

are Our your on to we ready growth. long-term questions. for With revenue growth profitable team that, remains executing drive focused initiatives on our

Operator

Instructions] Philip [Operator will with first question Please the go And of you. JPMorgan. Thank from Cusick line our be ahead.

Philip Cusick

guys. bit been the Jeff, -- Arizona. in if building bit. very what's a a been talk want great. thank back help of bit all a companies, and a out and holding little that we Hi, build about across there's have And little It's years. talked fiber region time CapEx companies of and and targeted just little about been I this yield other I to couple could for listen, your it's a you the much for long thought Thanks and

to sense here? And follow-up. a to accelerate second, range good just for from do pretty those the guidance feel what give, EBITDA of specific of make sure at then potential to? fourth implies And page? your any to is who on everybody much. us quarter, it the you same What's does Thanks just a math, very aren't your Chris, sort need very for on make

Jeffrey Storey

second and take can can the you Chris the add it, to Thanks, question. first I'll Philip. one, take then

at you fiber we're doing fast want look not as to If as it do. we our enablement,

it constraints, those. to enablement. supply a we inflationary through things work labor we'll lead let want We're things. are doing And that to as with into be as of those and not fast new shortages, that. that deploying So go lot types pressures me chain continue There of

So worried through I'm but work terribly them. not about we'll it,

market As we've some of people's to far that market coming happen. going That's selecting done the part and in to small ourselves. market build, it people as just in go and that's to in, going happen, other

those a And we just sure go about, is see gig then competitor we capabilities we a in the interaction so And want. to that have that's talked great What that markets. great all-digital we've the make build need have multi market. another we as experience, the appropriate aggressive we a pace that that do product, at and for

Christopher Stansbury

Phil, Yeah. year, the quarter, we've for on guidance fourth the on EBITDA. and our held

just pressures are this lower point, given the the some at working near We of end inflationary that we're through.

year-to-date results. So, that pretty given much gives you quarter the the fourth

Philip Cusick

Jeff. guys. Thanks Thanks again,

Jeffrey Storey

Thanks comment, your Phil. for you. Thank

Operator

Simon Flannery ahead. Stanley. Please with from question next go is Morgan Our

Unidentified Analyst

Diego taking question. for It's Thank [ph] Simon. filling guys. Hi, for you the in

you change rationalizing on enterprise the people AWS. of you on of how anything buying the softening that of like kind heard cadence? that can pacing on about enterprise that on front? trends, Can you're about on Thank we've trends talk some kind buyback demand, you. would program First, what thinking and then about you're customer talk things And seeing buying

Jeffrey Storey

Sure.

Let me specific approach make go get And too we thought process, but our structured won't on we that have and and a this timing, one. come tell we take to we'll buyback the then first engaged be is we'll Board it. of about in good the to of other back I'll how you question the to about timing follow opportunistic specifics not things. opportunistic structured it. be and through that into that approach. the we'll sure But I'll take get advantage and Look, and

much think And increase buying don't that in our We should we win-loss very changed patterns, quarter a seeing an environment then decision-making. say, or since in second with then. call decrease, the see I respect were the I win-loss. said our we slowing don't to has in ratio

quickly as just we're possible. somebody not that else. as people deals see to losing We it's decisions those don't So making

And increase our we cancels. don't see in particular a

deals So like away. it's the going not are

we of the And so the it in kind they to us. the environment choppy new to is that - our go quarter. them have that we're through we second to do same environment customers, slowing approval get and But business enterprise see it's for saw a process

Unidentified Analyst

Thank Great. you.

Jeffrey Storey

Sure.

Operator

with question next UBS. Batya ahead. Levi Please from is go Our

Batya Levi

Great. I new you. want the capital to back I best also your you chapter. wish allocation in Thank the go strategy. all next to Yes. do

the and would process maybe just view out Or I that was something there eliminate on different? of a challenging sort it more of dividend is lower. of function you or elimination completely view ahead? a think the your debate Can your decision-making provide is go if trends complete just with there the you

fiber fiber over what And the million would on remaining maybe just Can could percent a CapEx time? just you your homes? you. follow-up XX What be overbuild expectation a on get the Thank side. go over

Jeffrey Storey

second the that take the of have I our passed number, will first can about what right to it, a that's Can question. add and and I'll million fiber the course question homes overbuild. take of Yeah. your, percentage XX

we current we the allocation dividend regularly the we some and you, goes environment, thoughtful told in that keep process. eliminate I've the thank should of our place. our current capital Board - And the context strategy in very review considered sort circumstances, look, of of or context first of all. in Batya, you we small before we dividend through obviously a

token than these at we program through eliminate better repurchase right was share return the shareholders small there. out that's now some is stock to value a through prices, answer it's And it dividend to to that believe it,

that So we the through. that was went process

ILEC our but dividend would in we the transaction and when at this and business that we also also -- the Apollo that we policy XX-state and when We our environment policy time. business, our capital that make for said, the at mentioned said and re-evaluate allocation the closed based look remarks decisions I at we announced prepared conditions look on and

it's there's transaction, just the our out better our not as value It's coming of or part any And we And sign don't assessment return just so, greater it's to buy weakness of the inability to a business. we best that shareholders. way that's to Apollo shares. back fund think that believe to

Christopher Stansbury

don't we your This as on project. Jeff to fast changes goal. can. mentioned Batya, We're the question, multiyear second earlier, doing as is a obviously we as think go no, can, this everything I

about as and deck labor permitting our issues some we headwinds. on the or to think is don't that Obviously, to think of can as we we can ground changes can, want do. all given we hands goal But terms there as see to where term enablement’s in right now go we many this I what we fast at get near do really in point, as can. what It's

Batya Levi

Thank it. you. Got

Operator

Our Barden question of from go next David Bank Please America. with is ahead.

David Barden

Appreciate. Thanks. Jeff, And been guys. it's Hi, a time. long

Kate you her thank a process. being So and for joining, looking I'm in whole this meeting And to and she's forward I'm partner sure listening.

couple questions. A of

to needed a you Structured we and Europe we a that was the paper? the be And could on on because as that just announced it structure, maybe billion $X.X wanted felt would have share little sale. all same like? put something First transaction also, taxes why look time what this to option, the get you'll strange, at on it like stuff

to well, we to we're market how And to what And regarding to up, second, want does coming our that like? is look in price? are Like on about, question part while big stock conversation? lever be of buyback, there's to the do conversation that book imagine paying just constant that year, next we the back tax with then going stock? is to debt where buy taxes that And a follow-up look going the first the stock

apologize And dollars in billions fighting in I the Mass could, my yet And interest over spending asking there's many Markets last fiber that for -- we I years this X.X% massive to revenue. the revenues look, are but is rolled of chain and this of total question, out. thing and guess whole one get supply

rather be cash, the Thanks. run decision that taken cash? go, that in we just company, in was business other our Why margin. Let's take shouldn't recognize sorry. copper conversation invest it upgrade for did how at fiber and the that of Like better that that XX% business let's that the maybe than, make

Jeffrey Storey

Okay.

of your in announced let may take strange put It purchases we First for the process the sales some in businesses just sales businesses was US, that we or of of to And get - countries. for seem at options not these regulatory of approval. same the get have all, the have seems of to it it's time. the me and to through US a strange other in part go - sort strange things it's

in the put which company The and sure makes it easier option that we operate. jurisdictions rules for we're part to the - put complying make structure and regulations that, is with the of

it. nothing So strange there's about

done middle transactions, is then fiber. you For But businesses why back the the X-K. this you come details, to if at look take in I'll markets common to in Europe. fairly and two other have that don't refer a similar certain it's I'd the structure Chris, you -

Christopher Stansbury

Yeah.

So billion I the due that between tax you April. I so question, both far. for that heard we think would tax divested And impact be $XXX and said next correctly, the businesses $X the combined taxes is includes of and the million

As view it leverage, mean, quarter. dynamic as in performance at other what looks look, in those point time, the each cash at relates we given in our that to look to I like we any right? how really look to given we'll things manage I relation have the have versus So buybacks to

look linear It's doing that manage we best and a will sure process accordingly process, but to to. not We've got buying that think, got it's strong, opportunity possible debt equity and I stakeholders. we're look leverage will it make term, markets Obviously, a be the We've dynamic opportunity, to to the the buying that our we in markets. for stick our near the the where are. at in at job

we'll how at that's So going really look it forward.

Jeffrey Storey

your David, a how try should that fiber to I'll of on And money. bit revenues color, be last about and give question we investing little

timing, the If we remember in the at you copper we be consumer -- Should ago, consumer three I look don't should business? the fiber hard or took a be years business. we in four look

we And sense. in do markets up great cash it fiber want in and some those off we that at manage decided for and of look And the that fiber sense growth Denver we invest the but list, markets. makes decided to the makes and make to where in makes markets that the in the is the anybody don't that that Minneapolis sense And it and where candidly, states I should within thing all analysis, in. are out coming remaining markets XX invest the markets that markets, got growth we've Seattle communities leave that operate we where

us in invest in. those decided for good we've so to fiber that And are markets

that investors should that good else do in those job. was -- invest will We It where we can for those be somebody sell that's decided with created. we just there's And then And will markets. great will we've a Brightspeed some their those that assets their than owners. It better be good do They they'll markets. Brightspeed do. for think will how and

And things And so our to little there forward. the whatever best bit these structure the of And take. that we're open that to we'll mind return. – above, going sense suggestions is is all the do shareholder our answer will door makes all also for the to open a change would you how of always most that's on leave

are but more are as static things decisions, made and make And to for the very revisited, we to, sense focused never executing not that if but at other we on open we once decisions us. decisions committed they these that look against,

David Barden

Again thank Jeff, you.\

Jeffrey Storey

been long And has thank you, it a long - time. Dave. It's been a

David Barden

Jeff. Yeah,

Michael McCormack

next question France, David. Thanks, please.

Operator

from is go Louthan with Frank Our Please next ahead. Raymond question James.

Frank Louthan

the And you. Thank Jeff. the over for thanks all help Great. years,

growth what's regard to this, you you left, sustained all line future? growth? And does this line when So do sell top deliver the when can top leave with you Thanks. where in you with think

Christopher Stansbury

Chris. that I'll one. it's Frank, take Hey

we growth think process faster get can think obviously bucket show growth We've is growing the the obviously Harvest my you focus I Nurture main sooner. a in when and I bucket I around our starting to Harvest results. look got at that mean buckets, is to doing certainly what

is and and But realistically, we growth with and total experience, size But away the go three years the what we growth good Kate's from Jeff I with, be starting will still where I with certainly, focus forward, think feel just buckets. about we're it. what I bucket of think two as leaves those have, focus, the us to given that's the

Jeffrey Storey

And just to ahead. add, - go

Frank Louthan

go No, ahead.

Jeffrey Storey

very I in. have feel Just come to to excited add, Kate

I done interfacing to going the edge job to our those. orchestration, things that to a telco in that that with things Kate the of around accelerate forward and services from and all tightly is transitioning us a platform infrastructure, collaboration, we the great have the Lumen technology building customers team sell think the fiber building team a to and Lumen differently, for a platform and the company, security, around growth our has ancillary cloud, coupled

excited still about And I'm to very platform. growth add to so, that ability our

Frank Louthan

meeting of change I the less well. great. to? Nurture the - that's EMEA as Grow, the one between just exposure follow-up. Well, Will forward I more you materially quick any have look or have to sale buckets and guess, split of on those with a the Harvest business

Jeffrey Storey

any Yeah. company of think strong don't you, Chris? our I EMEA. those The doesn't with of exposure. the buckets of either operations Do sale particular change have any

Christopher Stansbury

or I skew way other. one the dramatically to don't think going it's No. things

Jeffrey Storey

the the of won't it And the change way operate rest Yeah. company either. we

Frank Louthan

very you much. Thank Great. Okay.

Michael McCormack

we've more France, got take question. one time to

Operator

Very good.

Please is ahead. question with Nick next Deo Our MoffettNathanson. go from Del

Nick Del Deo

else's my your everyone taking want echo questions. on for retirement. a accomplishments to Thanks well-deserved I Hi. all congratulate and Jeff, and comments,

Jeffrey Storey

so last Nick. you, call, Thank the pleasure you earnings in And career. last no have my my question on

So, forward I'm looking to it.

Nick Del Deo

the to All guess, I A on pressure transformations. or lot cutting on right. of cost that. deliver first cost

over you've the noted, resources the to finish been you line. the getting you've given over a LatAm Apollo As hamstrung past and bit the dedicated year, deals

resources sort up that And EMEA that What over up should we finish of line your do to that? about way to devoted getting cadence XXX%? to the getting terms will the back running. the expect in and deal getting ability talked You of engine on

Jeffrey Storey

first No, deal and one one. take not first our me ability. the weigh will then the second EMEA let the can So you take Chris on

and you much at are of of and being is if this business new at acquisition If those look Cirion more spun [ph] by Brightspeed stand-ups businesses one you an an out, more existing of our look business.

complicated. as be frankly. and the the things. I it value us, don't will - don't that's be one of as expensive don't I think it of think will on drivers I so side for key Lumen And

Christopher Stansbury

be going rate, forward, go we're year relates to it or two I to that's of simplicity some in will to automation going get now. where to to And And back looking Yeah. as that. I starting we're but And to full and to a we our we're more internally. think with for with drive initiatives, agree processes get ability the us focusing. it totally take run back as to ways cost-saving that be our

Nick Del Deo

Well... Okay.

Jeffrey Storey

Go ahead, Nick.

Nick Del Deo

to ensure do wanted at doesn't compensated. the and incentives been those Harvest implement changes emphasizing talking categories you've the put I place? categories, thing sort ask do get you bit several base guess, to pace that differently, that into changes growth fall ensure about I undue last are place which in deemphasizing The over the How of maintain of terms in people revenue Harvest what stated of that? while an put those how is months, compensation, that people about you a last was sales something

Christopher Stansbury

gets because, things sold bucket at anymore. into the product a very specifics, not won't really all again, Yeah, Harvest But our fully I aren't think that much I is get is obviously, key point yet. finalized that

look of the at sales today, growth is in in the the Nurture you categories So category. it exist the where bulk

it's how those. So you really behavior incent within

like from older compensation things Now and newer we're on hard rerates, up success separately, organization tech, the we very do that's a stack have a system. separate moving tech customers sure customer that that to making works

flow that's So assets. of and just manage we decline products of the the manage new, to those how from old also overall we

there around how of in So people is structured terms are a comped. that process

Nick Del Deo

Okay.

Thank Great. Chris. Okay. you,

Jeffrey Storey

to say like with time you long all. of I I've for a all relationship. appreciated All I'd you right. and the worked thank

to with conferences want and these engaging am I proud miss quarterly calls the And I'll on of attend. various you what they've extremely Lumen team saying close all built. the of how by that and I so I

strong to that company has poised is and a foundation for the very behind leave a I think I profitable growth. return

the So we've for built further stakeholders strengthen excited leadership and what that. will past excited I'm as several excited I'm Kate's over I'm Lumen. years. employees for its for

and with for in your thank together for that say the joining -- that, we've call to time with interest like Lumen, you you the I'd So today. had thank and

Operator

using participation Conference disconnect that lines. your and Thank the Service Have you. you great does please thank everyone for This would call. for We conference ask We everyone. like your to today. day, conclude Lumen a

Lumen (LUMN) 2 Nov 222022 Q3 Earnings call transcript