Ahmed Sherif
Research expert covering IT services and gaming hardware
Lumen Technologies (formerly CenturyLink) - statistics & facts
In the ever-evolving landscape of telecommunications, Lumen Technologies emerges from the trails of a U.S. communication giant CenturyLink, offering a constellation of services spanning communications, networks, and cloud solutions. One of the leading broadband providers in the U.S., Lumen also services businesses and private clients in North America, Latin America and Asia Pacific, employing 28 thousand employees globally as of 2023. The company adopted the Lumen name in September 2020, though it has retained the CenturyLink brand for its telecommunications services for residential and small business customers.
The company has undergone major operation sales globally in 2022 and 2023 as part of a larger restructuring plan that aims to streamline its operations and reduce its debt. In August 2022, Lumen announced the sale of its Latin American operations for 2.7 billion U.S. dollars to Stonepeak. This was followed in October by the sale of its incumbent local exchange carrier business (ILEC) in 20 U.S. states to Brightspeed for 7.5 billion U.S. dollars. In November 2023, Lumen also completed a sale of its EMEA business to London-based Colt Technology Services for 1.8 billion U.S. dollars.
Overall, lumen faces considerable challenges amid high debt and declining client base for their services. Although the recent November 2023 debt restructuring agreement has provided some breathing room, immensely boosting the company’s liquidity, it remains to be seen whether these measures will be sufficient in the long run.
Lumen restructures with major operation sales
Lumen’s financial situation has been declining in recent years. In 2023, The company reported annual revenue of 14.6 billion U.S. dollars, continuing a downwards trend that started in 2018. However, the staggering net loss of 10.3 billion dollars in 2023 is what stood out the most, accounting for more than two thirds of the company’s revenue that year. Lumen’s total assets also fell to 34 billion U.S. dollars in 2023 from over 45 billion in 2022.The company has undergone major operation sales globally in 2022 and 2023 as part of a larger restructuring plan that aims to streamline its operations and reduce its debt. In August 2022, Lumen announced the sale of its Latin American operations for 2.7 billion U.S. dollars to Stonepeak. This was followed in October by the sale of its incumbent local exchange carrier business (ILEC) in 20 U.S. states to Brightspeed for 7.5 billion U.S. dollars. In November 2023, Lumen also completed a sale of its EMEA business to London-based Colt Technology Services for 1.8 billion U.S. dollars.
Business clients remain Lumen’s core focus
Although Lumen provides private customers with residential broadband services, enterprise clients account for most of Lumen’s revenue. In 2023, the firm’s business segment generated over 11.5 billion U.S. dollars, while its mass market segment brought in just over three billion. Within the business segment. The company’s higher-margin offerings such as security, cloud, IP, and UC collaboration services accounted for the largest share of revenue at 4.5 billion U.S. dollars in 2023. Fiber broadband has been a growing focus in the mass market segment, generating 636 million U.S. dollars in 2023, an increase of over five percent on 2022. Meanwhile, voice services revenue from the mass market division has declined sharply, reflecting the global downward trend in fixed telephone subscriptions.Overall, lumen faces considerable challenges amid high debt and declining client base for their services. Although the recent November 2023 debt restructuring agreement has provided some breathing room, immensely boosting the company’s liquidity, it remains to be seen whether these measures will be sufficient in the long run.
