Lumen Technologies, Inc. · NYSE:LUMN
Lumen Technologies — CenturyLink — Q2 2017 Earnings Presentation
13 slides from Lumen Technologies's earnings presentation, Aug 2, 2017
Slide 1: 2nd Quarter 2017 Earnings Results
2nd Quarter 2017 Earnings Results August 2, 2017 © 2015 CenturyLink. All Rights Reserved.
Slide 2: Forward-Looking Statements
Forward-Looking Statements Except for historical and factual information, the matters set forth in this presentation and other of our oral or written statements identified by words such as “estimates,” “expects,” “anticipates,” “believes,” “plans,” “intends,” and similar expressions are forward-look
Slide 3: Non-GAAP Measures
Non-GAAP Measures This presentation includes certain non-GAAP historical and forward-looking financial measures, including but not limited to adjusted EBITDA, adjusted free cash flow, core revenues, adjusted net income, adjusted diluted EPS and adjustments to GAAP measures to exclude the effect of s
Slide 4: Participants
Participants Glen Post Chief Executive Officer & President David Cole Executive Vice President Operations Support & Controller Dean Douglas President, Enterprise Markets Maxine Moreau President, Consumer Markets 4 © 2015 CenturyLink. All Rights Reserved.
Slide 5: Financial & Strategic Overview
Financial & Strategic Overview Glen Post Chief Executive Officer & President © 2015 CenturyLink. All Rights Reserved.
Slide 6: 2Q17 Highlights & Trends
2Q17 Highlights & Trends Strategic services Core Revenues ($MM) 2Q17 2Q16 % Chg ◦ Enterprise high-bandwidth data - solid Enterprise high-bandwidth growth in MPLS revenue offset by data services $760 $753 0.9% decline in Ethernet revenue; grew 5% Y/Y on a normalized basis IT & Managed services 162 16
Slide 7: Transaction Update
Transaction Update Acquisition of Level 3 Communications ◦ Continued good progress in obtaining necessary approvals; received shareholder approval and regulatory approvals/clearances in 23 states or territories, with 2 states remaining ◦ Integration planning process continues to go well; remain conf
Slide 8: 2Q Results & Guidance Overview
2Q Results & Guidance Overview David Cole Executive Vice President Operations Support & Controller © 2015 CenturyLink. All Rights Reserved.
Slide 9: 2Q17 Financial Summary
2Q17 Financial Summary • $4.1 billion in Total revenue Impact of ASC 840-40 2Q17 3Q17 Actual Estimate d • $3.66 billion Core revenue1, 7.9% Y/Y ($ millions) decrease from 2Q16 Recurring (through 4Q18): • $1.92 billion Strategic revenue2, 6.2% Increase in revenue $ 12 $ 18 Y/Y decrease from 2Q16 Decr
Slide 10: Enterprise Segment
Enterprise Segment Enterprise - Operating Revenue $ in millions $2,435 Enterprise Strategic Revenue ($MM) 2Q17 2Q16 % Chg $2,215 Data $122 $123 High-bandwidth data Integration services $760 $753 0.9% $1,232 Other strategic (primarily Legacy $1,107 colocation & broadband) 225 328 (31.4)% Total Strate
Slide 11: Consumer Segment
Consumer Segment Consumer - Operating Revenue Other Legacy $ in millions services; 5% $1,494 $1,402 Broadband services; 47% Legacy $694 $633 Legacy voice services; 40% Strategic $800 $768 Other Strategic services; 8% 2Q16 2Q17 • Total revenue decline of 6.2% Y/Y ◦ Strategic revenue decreased 4.0% Y/
Slide 12: Guidance
Guidance 3rd Quarter 2017(1) Operating Revenues $4.06 to $4.12 billion Core Revenues $3.59 to $3.65 billion Adjusted EBITDA $1.43 to $1.49 billion Adjusted Diluted EPS $0.44 to $0.50 12 © 2015(1) CenturyLink. All Rights Reserved. Third quarter 2017 guidance excludes special items.
Slide 13: Q&A
Q&A © 2015 CenturyLink. All Rights Reserved.