Lumen Technologies, Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with total operating revenue of $13.1 billion, down 10% from $14.6 billion in 2023. The company experienced a net loss of $55 million, a notable improvement from the previous year's loss of $10.3 billion, which was heavily impacted by a $10.7 billion goodwill impairment charge. Operating income for 2024 was recorded at $460 million, a stark contrast to the operating loss of $9.6 billion in 2023, primarily due to the absence of similar impairment charges this year.
The company underwent significant strategic changes, including the divestiture of its Latin American business in August 2022, a portion of its incumbent local exchange carrier (ILEC) business in October 2022, and its operations in Europe, the Middle East, and Africa (EMEA) in November 2023. These divestitures collectively reduced Lumen's revenue base but provided substantial cash proceeds, which the company is using to fund its ongoing transformation and network expansion initiatives, particularly its Quantum Fiber buildout project aimed at enhancing fiber broadband services.
Operationally, Lumen reported a decrease in customer engagement metrics, with a total of 2.5 million broadband subscribers in its Mass Markets segment, down from 3.0 million in 2023. The Business segment, which includes enterprise and wholesale customers, generated $10.4 billion in revenue, a decline of 11% from the previous year. The company noted that approximately 2.8% of its consolidated revenue was derived from international markets, indicating a continued focus on domestic operations. Employee headcount was approximately 25,000 as of December 31, 2024, reflecting ongoing workforce reductions aimed at improving operational efficiency.
Looking ahead, Lumen Technologies expressed cautious optimism regarding its future performance, emphasizing its commitment to modernizing its network and enhancing service offerings. The company plans to invest between $4.1 billion and $4.3 billion in capital expenditures in 2025, focusing on network expansion and infrastructure improvements. However, Lumen also acknowledged the challenges posed by competitive pressures, evolving customer demands, and macroeconomic conditions, which could impact its ability to achieve projected growth and profitability. The company remains focused on leveraging its extensive fiber network and enhancing its digital service capabilities to meet the increasing demand for high-speed data transmission and advanced networking solutions.
About Lumen Technologies, Inc.
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