Lumen (LUMN) 31 Oct 232023 Q3 Earnings call transcript

Greetings and welcome to the Lumen Technologies Third Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded, Tuesday, October 31, 2023. I would now like to turn the conference over to Mike McCormack, Senior Vice President, Investor Relations. Please go ahead.

Thanks, Darcy. Good afternoon, everyone, and thank you for joining Lumen Technologies Third Quarter 2023 Earnings Call.

are Executive President Financial Vice Rahul our today Officer; Chief Officer; call Modi, Stansbury, Chris President Treasurer. the Kate and Johnson, Executive and On and Chief

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

We measures, referring certain which reconciled earnings measures GAAP found will be be our in non-GAAP the financial can press comparable to most release. to

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

afternoon, progress start summary major excited Good growth. I'll accomplishments. to with Mike. in I'm reposition for a to made efforts we've structural share everybody. Lumen Thanks, material some the of our

progress simplifying First, significant in made Lumen divestitures. with we've X

planned. expect $X.X transaction be the to our than of business will Colt debt reduction. we for We used tomorrow, after-tax earlier X, generate sale to approximately proceeds, net billion November will in EMEA which close This anticipate

resources transaction Second, market where X businesses the a us of will that weeks ourselves focus on contracts, ago, differentiate we CDN enable our announced continue the scale. majority sale of we our the at in to can to

extend $X.X revolver The term large remove banks of the debt company the work and of creditors new subject regarding loan extend reached portion broad provide our getting maturities approval conditions, of the covenants. The of the its with billion creditors debt of of hold sheet. a is in as satisfaction to also company's and transaction completing that with our billion over financing. our the successfully to transaction balance from other $X compliance debt We closing group will a certain will the its subsidiaries. questions and Next, with The outstanding creditor agreement including A needed.

market as and In we've we and decision to which difficult revenue X% rightsize the result the made annualized well reduce approximately to We're the sheet, company. for our and markets taking decision initiatives, will inside reshape Lumen but optimization in better And you creditor the addition enable our as will efficiency, expect, actions, improve pressures. These with steps will the it generate serve. a fewer along growth. of in balance will and the our in to the this proactive agility necessary immediate This people given as restructuring balance discussions is base difficult $XXX our million. savings pressure additional might cost about will global compete noise regarding we it address lower us macroeconomic sheet felt noise, from to reorg,

in to talk Business of about operational I'd our seeing like we're improvements Now segment. the some

we base and right, commercial contracts boils to drive migrating X-pronged have secure customer against our down two, growth. we're progress we innovate And things: installations, disconnects, things increased technologies. newer reduce churn. usage, driving X we to maximizing minimizing If customers these renewing get X strategy a the making business: to X. Securing this the and excellence; shared, one, we've transform base; three, As for all

Obviously, a improved increase a XX% behavior in increase X performance in path analytics enterprise metrics installs, So a business win in lot to churn large North renewals approach, formula me a this work to of a created success. usage, we VPN heavy and With use address delivered do a data a X% quarter. see here, a in an do increase X% share but America channels. We migrations. we and mid-market more understand sales this for X% quarter's to and voice X% reduction disconnects, these customer our let customer revenue in to sequential increase agile and saw performance in and

driving ways against look sales sell execution Simply sell put, at about customers yields commercial or net you these This ones. ultimately excellence. grow: there's of growth just We're existing to that services and growth. new to making is Let's products more vectors. either you two progress to both

public we a sector so I customers or earlier. deal seen a moment. more that more talk for far XX% the across headwinds XX% enterprise, mid-market added customers X,XXX new this logo described about Year-over-year, segments to products than normalized First, we've year large large I'll existing despite Grow just sold and in

we sellers we productivity new markets. net given is driving metric of XX% many seller going a higher year-over-year, have. A impressive after how new excellence achieved Finally, part commercial big very

over won For space, our this in which help huge to first deal $XXX bring partner. the Lumen an example, multiyear we in potential of State California to strategic see We to same framework states markets. bridge right. divide. All digital digital public-private large representing Lumen now inclusion underserved the as for broadband the for key when market, a other million opportunity connectivity revenue to chose and commercial presents partnerships as states of of unserved bringing seek reliable the We're they

access NaaS, of sector, NaaS about growth. and and a and digital offering available our like capability to technology, prong On-Demand. retail, business now in Internet net to or including few. all for is Lumen driving first market XX new This generally called name care, This lighthouse new customers industries, great health pools. as has manufacturing of capabilities is public adoption a network service, insurance, bringing third our We've progress to made gaining the profit The new innovating strategy,

partner Lumen to XXX and Equinix. ecosystem NaaS partners, XX Lumen is also in great scale. can addition to through our centers across directly leveraging In customers, America data selling enabled different through On-Demand to North Digital buy markets drive Customers our Internet Realty

Our NaaS industry-defining. is product road map

capability we'll in applications, with security API be to then soon, and dynamic for ultimate adding DDoS, we'll capability bandwidth allow to we'll flexibility. their business in we'll NaaS be customers layer So then offer usage activate adding own --

market setting table optimizes makes communication of for architectures mainstream. that hybrid ExaSwitch, performance the a together rapidly at one and Now the Gen application across that NaaS platform, Edge Lumen the our new changing category infrastructure on-prem, for room with becomes multi-cloud, AI edge one needs Fabric for is modern and and network as

are the win. All cloudifying We to going playing are telecom. be disruptive and to It's to industry, right. we

Markets. Mass to Turning

is growth in operating our enablements, have construction We strong well. factory Fiber Quantum where

this said, our Now subscriber that our were expectations. quarter below adds

vastly steps with and one inventory quarter, the order-to-install significant Fiber to During improve Fiber, took field improved merging commitments. as Quantum all system combine into and CenturyLink we we operations tech

activities, as dampen activity, that this environment and growth. adds operational capital we face these more constrained believe with do prioritize coupled investments and existing builds. Therefore, over quarter, enablement we we to move lower ahead, we'll penetrating a we selling While need marketing better subscriber know do sales

with see at about quarter, will U.S. proud Lumen doing I've for work a XX wrap return we should greater spent markets. All pace, starting our capital third right. on to healthy months, penetration recognized and at was we a during often been To people. still and hard While build higher spoken up, the rates by I'm in that We've mass Lumen rebuilding that share past the

call I pivot we've Work is to telecom. a headwinds, Best of structural culture challenging of Places do, And Lumen News the think to our And named demonstrates important, strategy XXXX operational enables to in change. Transformation first business. a & that, but over It's creating lots towards Report and company. despite we're big power World the it we've in that as There's made list, being to and Chris. confident important with time messy one the our improvements. to changes and extremely measurable stabilization growth. And the equally turn made to I'll more the

Kate opportunity of Kate, a our disrupting playing telecom formation maturities and our those reaching agreement our us well the She in we as good of our the as everyone. afternoon, group continue of in telecom. allow disruption earnings future objectives the agreement we and also announced we to The about creditor spoke debt today will as spoke journey our our both viewed fund our an and progress to creditors both meets transforming transformation address an call, of and said with challenging profile. success Thank to group to maturities. On QX of win. extend you, and

a going forward. trends our I results, like covering quarter discuss financial would third to minutes several our take few to Before will impact which items

material As of we sale investment $XX capital million nature were sale adjusted contracts month, closed this in declining Harvest CDN these Kate our to received EMEA that our to our mentioned, down that a revenue EBITDA X. not these contracts We on of The our little the CDN roughly plan financials. November revenue Keep have contracts impact and the of wind in valuation, CDN earlier reflects and recent $XX XXXX third disclosed, CDN will mind while portfolio XXXX. in quarter the we contributed results. have We of million years. remaining in close not to tomorrow, CDN The sale and estimate the part business these in on contracts. expect the

approximately $XX business, our we to million outlook. in are million revenue, expecting EBITDA, be For approximately taxes, a tax of estimated $XX the of included refund $XXX million in fourth Approximately pay the of refund financial the a $XXX we EMEA our million of quarter million $XXX XXXX million previously and pending are CapEx. first a next divestiture assumed full in applied quarter not adjusted refund of of within the and outlook in will cash expecting Separately, approximately contribution $XXX XXXX year.

an of our cash expect to to a benefit, part in we near-term use receive NOLs. accelerated this While due is

our reverse are next years. related Some full make keeping counterbalancing of the $X the to million. $XXX comfortable few contracts to us pending that year flow will of guidance transaction the EMEA XXXX CDN and impacts benefits over cash There free the

next has quarters. the overhang results and our will headwinds, As revenue resulted macro pressure Kate of creditor over in the discussions mentioned, environment few our which the

plan, With the improving and mid-XXXX. our continued to revenue today sustained agreement execution against trends in we reached creditor expect see

Kate cost near-term the on adjusted mentioned pressures expect EBITDA. help that we addition, In to address earlier actions

the quarter. clear and years, been discuss our more continue to our more in work of the we've third financial be nimble needs transactions the dissynergies. I'll organization wake Additionally, now that over through X.X in to summary transaction-related last of detail

impacts I've commercial period our ILEC performance substantially year-over-year LATAM are year, rates. results, financial growth on reference the agreements our of XX-state mind, when comparability year rates divested done and better and the impacts as for in ago of the the businesses. included sequential from throughout excluded than are I'll basis this reported divestitures primarily our As Keep a better

revenue cash third with billion. $XX million was a the Our Adjusted XX.X% X.X% declined flow in EBITDA on basis third Free a $X.XXX the was billion quarter sequential total in to third quarter $X.XXX margin. quarter.

Enterprise XX.X% down and with the detailed XX% impact for this revenue which I'll representing Next, year-over-year sequentially of reported segments, growth to Business agreements basis, by business our wholesale, much X.X% Markets strength $XXX in Mass quarter. revenue reported channels, to declined divestitures the and billion, was the X.X% million. Within approximately to sequentially revenue key which driven revenue segment of decline. sequentially. X.X% review is excluding fluctuate a other results Be that quarter-to-quarter. aware our $X.XXX Within grew On is our two revenue declined commercial of tend products,

impact said, variability other excluding years. expect trends. we the seen and grow, near-term the That slowest revenue subtotal declined of divested of However, revenue harvest the to businesses, rate nurture our we've at and continue in products in

revenue XX Enterprise basis now IP, approximately the to improved by declining third products and impact Grow in due to was the quarter. colocation Harvest. fiber Enterprise X.X% revenue the of compared points Nurture and dark exposure grew trends trends declines the of and Large than to segment divested less strong revenue continued driven XX% Our primarily channel second harvest Enterprise in in down is sequentially. Large year-over-year revenue when for quarter excluding and demand moderating businesses sequentially

sequentially. to public on X.X% moving grew Now sector. Revenue

and Harvest moderating Excluding of to during improved Grow declined Nurture products third divested declines revenue sector the year-over-year our in businesses, primarily solutions, revenue public which higher and includes X.X% trends the nonrecurring and other revenue, IT due impact quarter. Mid-market equipment sequentially. in improvement

trends X.X% revenue enterprise and Grow declined quarter broadband, lower driven third IP, businesses, UC&C year-over-year. VPN within products revenue than offset Strength by divested in revenue is primarily by our more worsened of impacts sequentially. the which Nurture. Excluding were Wholesale

cash. We manage area channel likely wholesale to an for decline expect time as is continue will our we it over

Now product moving sequentially. revenue life reporting. products X.X% declined on cycle Grow business to

Excluding businesses, this moderating growth. divested results showed quarter's the our impacts of year-over-year

we in margin approximately XX% quarter, we direct an improves results area headwinds and customers While provides expect migrate in Nurture lifetime can value our customers' to customers experience strength continue execute in given and we the This an for uplift proactive of any this on steps vary turnaround. categories or quarter. Within this these expect our -- XX% our continues Grow approximate as Business expect we to Harvest, in and newer sustained take of to to we segment as carried Lumen. represent technologies. those

continue products carried direct revenue Harvest of it XX% initiatives. fuel our approximate margin of indicators VPN and in mentioned, XX% is Kate our XX% sequentially. that in and an declined margin this segment to Nurture cash direct Harvest quarter. business it positive X.X% grew X.X% initiatives represents Harvest represents approximate XX% generates to time approximately our revenue continued take that an this declined some As Business are will as sequentially. about and be an our services. part products we our important Other carried sequentially revenue segment and see XX.X% to reflected Recall of due results. Nurture Ethernet leading pressure product Business our working, to quarter. growth

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

Revenue Now to Mass sequentially. moving X.X% on Markets. declined

service fiber continues Mass and a sequentially XX-basis-point exposure and Markets legacy revenue Markets Mass Also grew sequentially. other to voice revenue to Our represented broadband with that improve XX% our X.X% reduction note broadband nearly revenue. approximately of

broadband fiber X.X total were XX. total bringing the quarter, as September approximately fiber-enabled of to the XXX,XXX, enablements During locations million

choosing creditor Fiber and leads Mass choice and and in Quantum of flat quarter, third customers. basis ARPU with us at This will higher the turnaround against our sequentially plan result given returns. dropped business, broadband enablements stood but have of a Quantum the sooner execute returns those approximately penetration added our to end Market the the increasing copper At our increased the below XX% quarter, $XX approximately higher penetration Fiber third agreements are our to than was our groups expense During agreements for in had runway legacy we quarter. XX,XXX or XX%. The we interest a anticipated. higher forecast of on year-over-year to Fiber

pace will growth. ARPU and focus penetration this We doing continue at our increase year, we're to a to driving what but we'll similar build on and

As I've returns. in faster said we segment of is see where many incremental times, our Business best and use investment better our

Turning EBITDA. adjusted to

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

The included and the These items $XX impacting quarter year this XX% commercial third a negative last businesses, million adjusted impact EBITDA of totaled third $XXX related to of from the items year-over-year of million quarter of approximately year this the included agreements. $XX divestiture-related divested decline. Special million. quarter represent

special and cash expenditures third XX.X% growth Our quarter was as into items were third XXXX adjusted XXXX, quarter lean efforts. $XX Capital the the million. generated EBITDA In of flow million. third for quarter margin XXXX $XXX free company optimization excluding the we of of

our outlook. to on moving Now

for in provide Our for financial ready your questions. when all We'll our we we're XXXX, outlook XXXX outlook reiterating for we guidance are metrics. report quarter fourth results February. With our that, early

[Operator Stanley. Instructions] first Flannery Simon line the comes Morgan our with from And of question

came on just what you debt great us maturity the your as give if interest the impact a happens more could just Perhaps but little X-K expense it the know quantify I bit to out, well. and be agreement. Chris, would schedule

Yes.

ample pathway And we the than agreement, time execute to of participation the more obviously in we And really there's So clear on us through the turnaround. say, investment. lot I'd gives does which got that that that as the move need XXXX, to I work a to path do agreement is and we against need that what needs see a that. rates, to are flexibility Depending would does highlight we've Simon, maturities a largely to address able it execute being for continue.

compensate impact years And at to we cutting to to interest range less given way for we near out As it $XXX in, few next is the expense, that. at look the by year. higher over in Day. interest modeled it Investor CapEx be varies million Obviously, way rates further the the it $XXX on back more again, relates I'd will the million

Day Versus projections? the Analyst

Correct.

think at today's context you that how kind the of this deemphasize in And news? something Is do you point? BEAD of about

Those very what saying resting clear mean, again, in a I not which participate. have on were to feelings is an and will think said down I we driven opportunity, we're we But are again, there's if get BEAD we similar the our very No. tend focus programs lot in of return. returns, hope terms that on to is that. of today our consistently,

doesn't selective. mean it we're So won't but we be participate, going to

Deo MoffettNathanson. Our with next the question Del Nick line comes of from

the previously time the bullets X-K, Simon, you First, expect one you laid within in it of go the Chris, seem the at presumably I'm the million I targeted not through in scanning that cumulative flow end. a cumulative everything correctly, cash at like to come taxes in range reading the just time Day improvement that had was lower you your detail. just over out. I and cash laid low but it noted $XXX the include that But if of to had you Analyst think CapEx out to And would frame, some

could if just bit puts I'm better. So you wondering and a us there takes understand help the

Yes. the make I'm your sure that We're I I range. to answering we've is this mean want obviously, only guided, question. the holding guidance still year. thing

we're we us said, and just this incurring whatnot, of million year. you to of expenses look expected that on range. some dollars But when guidance the the a closed at be and As we used other within kept the couple whatnot hundred transactions that

-- forward Going go ahead.

Oh, ahead. sorry, go

ahead. Sorry, go

just on will things cash mentioned by I say all being in earlier equal, back we addressed that going flow was my pulling response. other a as forward, I free CapEx, be have, No. will shortfall

Okay.

the cleansing at versus the in talked So your you had information, Day. just expectations the to referring Analyst what be to out was where clear, about bullet laid first you I

see what I you're Oh, saying, yes.

by the unquestionably noise today. performance, cost-reduction from the impact overhang referenced, was program which that our all impact at refinance debt is announced a revenue. near-term Kate offset to impacted expect our way looked we market around -- that we will on and current sales Kate It The as ability the the in as that So had it. the structure we

obviously, have why excited line on to and the about that Investor sight got that There's did. term. talked -- for of But about So no we there's we range Day. to year. near-term near reaffirm within improving we revenue conditions that's But hurt in the at do, did the work these We've being we guidance next inside EBITDA terms stuff have great going we're that. revenue trend more the what of business question that trends, to

just the pace you're fiber Okay, reduction what's thinking? lower And just okay. And the enablements, magnitude on CapEx is of the of of the a function the change enablements?

this think It that I way the year I to we're about And flattish it. that's doing in in and the next come it years will terms what think lower Yes, directionally, enablement. relatively of year to means enablements. of think form look coming

Our Michael Citi. next line of Rollins question from comes with the

Two questions, I if could.

thought Day? the unpack the the productive revenue, out to highlighted you curious transitory Analyst quarter investment back of response other of the excluding last just bit items some couple divested third when following pressure a the the you First, ways to goals if fund some the the very Is And of get business the or of to last and try in the relative that in opportunities plan would to you and in on Lumen can up questions. the that at secondly, try you -- original be more laid just CapEx, then considering assets the business and course, to just of EBITDA slide.

Sure. Yes.

of both address those. I'll So

would we proposed our that noise that about previous that's near question environment. performance. And and it's ended the whether [ And I with had tough my that, our disruption think relative marketplace although the where say with in with today. measure we've a had to talking because tower, response, basis, our to but us, I pleased of heard impact. transaction So that's 'XX economic we're up huge impacting over impact, turnaround on then just a hard pleased was no competition a There's had as term, I an I ] it why said undoubtedly matter in think going an we're this amount we

around working. prepared see and of start So to things the say thing we third in I the and revenue sustained transition midyear I think the again, great next say sight to as that In remarks, kind as it's inside my But that to happening of clears is, company. year, scale bounce are going consistently, things that line we've the improvement said through we the starting move remains. did that way. I'd

good about we that. So feel

As there's like work more it to the continue that so ways remains if specifically, that around And fund asset-based do opportunity. other we'll question, see securitization yes, to an to structures relates CapEx, to option. an

structures do helping CapEx. So today but those fund any us remain, my comments assume not additional

The of next UBS. question Levi comes line Batya with from the

financing through follow-up split net A How And we it should announcing? versus your much think leverage new of we of terms paydown? deals. will the think should new you're where transformation about debt this of in be the in be? proceeds driving Great. on think would And maximum that you new how what about of do the used -- the terms phase, how growth

Yes.

last year. guidance starts is what back So do piece, think we into for because, I you again, that on that next to I'd want get with to think circle

in think, around. and turn strategy. are the they billion, I investors to fact raise to willing confidence in think management first ability the all, -- team who would incremental the their Batya, really company say, and I to our smart additional speaks the an raise, think, don't so shrewd credit from to today. What investors I at want was So I their is there I signal belief strong market, are These our go a represent our this that of that $X.X

about fund I it CapEx. that's really funds. part It's a necessarily It's using of piece to use not the specific debt. all so huge. We'll the think And restructuring of

as I stays and we obviously, to expect we on thinking, versus Our story CapEx I probably steady our turnaround to the decline. can't far it we of expect between guess part this then the now are so is really but say would through is XXXX. through will go -- but that everything leverage will in about It that today, restructuring leverage near where would term, relatively our decline. I

I'll I'll you give go So that today. that far. much

line from comes question of next David Bank Barden The of the America. with

I've million, but... got a Chris,

you And though, only sorry. get X,

I Yes. know. I know,

$XXX I'm had -- -- it's from thing cumulative end some We're there's million all now flow so the still be benefit. ], positive. million And That's reading guided so this we're And few cut kind we letting the the people of this and even CapEx. corporation. in that, some ago. going look up. to So showing June. refund a cash at a And going the from outlook to X% mysterious got go expectation of months Day low [ $XXX be we've now net we're this to a And yes, of tax that's Analyst maybe going with offsets, and

of structure that's And try line. third is going you out to call specifically, of it looking one-timers in as my heard That's done you've in as of quarter so first the that cost, with the think kind the model sector we we equipment out third question actual haven't quarter the whatever and is dollar affected in second out debt you an at, what get number, know interim the kind the like kind fourth out kind revenue quarter respect it the of XXXX? is, onetime all was called to the type I what about that like sounded to what really that what of deal. model to the was the was as we're try we nature? is public Could It accomplished? in with something we question. And

Yes.

because What relates to on to this it as mean, going it's transaction, again, is call, associated we said to I to a this not I that higher lot with well. foretells you're -- you but $XXX the that cost right, million CapEx complex and a is million that I think, modeling serve really, that needed and anything would of into very So tell debt cut $XXX between of transaction. the get I when

way: less term. you to this to we some by it with which When benefit transaction benefit, lot which next million us $XXX a taking. are The midyear really we you aggressively into year. of near-term Those hard so year. cost associated include being of think NOLs, into pressures we're the all the pull offset would can model, as that relates work a get pressures revenue incorporate that that the improving to tax nearer bigger around reduction the math how that that's So and revenue forward a longer to restructuring benefit costs million got what debt we've $XXX term, of cut the gets a says whatnot, have

And was as But should answers the sit the for one-timers you as not quarter. equipment by So other that that's the fluctuates around. it again, bucket, specifically I've you in know. quarter. you your -- those all to solutions but and I key think things that really year, this give IT it question, magnitude. And it relates given the And the sector, public

the with from TD line Our next question Greg is Cowen. of Williams

guess on focused than marketing you're Great. I sales and the rather years, ILEC. Home for on both The focused the to next enablement the of and -- actually. Fiber couple

in degree you coming you not said table? not about And on do worried past, are it? you're you're of question, your overbuilders the Analyst could you heavily investing But ILEC any the at amount of the the encroachment Day, sales further large of into or that First it, in investing not expect that if space into third-party the sales said a a of second to be homes. is investing sale didn't then in you would footprint you're larger the of now ILEC portion in larger if you

Yes.

pulled year. this competition think substantial space our has all to That are in cost that the to of if really first from the going walking we're not want clear stay this: where again, all, away still investment we consumer. flat to rising capital, across with back. a on of look build. consumer saying relatively of is So And I We're we're I be you

going So of this not marketplace. in the step what's move actually broader with out is on

and to running I there's that think subscription growth now to increased an real improve it getting now on Kate is, opportunity, mentioned, enablements penetration. the scale got I to a as market. lot enablement smoothly, returns we've on scale until fact talked mean about can a that which with we though, factory focus we

And really real aggressive So and to us, we marketing that. that's started to going be ramp until we're about for recently. haven't opportunity very a

this spoken as think I'm I So encroachment to not because the has already market its invest point. about to at worried willingness

how say about to here with is enterprise businesses ideas. considering And an like. the the all what we over open to looks business business. we two I goal remain would relates those a again, time, And happens to build we're think what it open and very assets: business and that to term, great As any long consumer

belief consumer to the time So we that will we would to in consolidation space, the in remain of place participate right point expect and that. at continue the take in

question line next Our Louthan is with from Raymond James. of Frank the

part target spending? right assuming business? of success place would relatively what the returns rate opportunity it again, your lowering some in fiber of build, of would be? sooner Are part build other kind higher part related of then couple And me the in -- second of coming the right the for choose the to my say business why going questions. that, low is risk the the invite sure to say, CapEx? will of to you're previous kind that the as of and you presumably than, are a exactly cutting far there and sort competition? And you're question, tell the is to you yes, businesses, why a the why question, fiber the not because So other Back areas of those as Given of business,

mean Frank. these kind a then territory. I of Yes. your capital, question, a quite invest about is the different, The is in consumer Good high how measured business of payback period one we more single-digit, double-digit returns talked in of lot right? be businesses bit and profiles couldn't two low

So even to with performance. a return time very long great

it the gets. that, quality we're fiber as the about particularly in Now scalability as of given asset, and of is putting the future-proof that that

market our products we're and beautiful and expand that one window and a thing low about that but of you and a kind faster is higher has just the security of look once payback return. that around And payback. The customer customers ExaSwitch bringing returns, Enterprise and in business of the offerings, the at get disruption measuring long very that in not years. mid-single-digit you're to nurture much services So existing of and nature our faster you returns to where greater to NaaS base keep business margins to is when your disruptive ability tail

about why is everybody as see So that's of down again, spend. And The builds. activity, we capital now overbuild Enterprise simply place faces but I keep the that overbuild right seeing. cost higher right hearing we're those not to really activity, slowing

enablement what in to XXX,XXX is compared by we're that on a to I doing seeing front. still, quite what So would invest range kind continuing we're year of every competitive robust say,

environment. today's economic a So overbuild lower much activity we risk think given is

line the Street of from And question our Research. Jonathan comes Chaplin with final New

steal to may. if going I'm two, I

I able Street. yes, Chris, sort they if struck deal I'm with creditors, negotiations in was go the just I'd you shared you've confidence it. some by the of incremental turnaround share expand and you'd time strategy. -- the them context to get with on lot the the for of sort you -- yes, what wondering your that's spend love your So And of you talking what to a that of bit you just could with -- is need those a what been comment little of vote sort to a of, to The to that -- fascinated, in

what different Investor blowout Yes. was mean included was very space. than in with that Day, say it's shared them that's the materials I we what obviously that I would regulated And a today.

So have to you access all that.

We as have full the for some tax around impacts fact that as we're visibility, about issue nearer earlier term, example, seeing that from we talked revenue. well the

No revenue space, it's the believe in is our when strategy, ability huge because from our what of we're investing to else for think innovation, that is us to doing in I services that. this focus. no believe one telecom, new. legacy And they in one to I and opportunity else a believe the in doing they say they believe migrate they disrupt in

you share the mean is with consider them you, -- when what So blowout that's we especially share I what with we information.

both, different And you resources continuation after so opportunities, it's the Frank's you've Enterprise. of to That it. fact, it that just profiles. And the Got one in going question like two helps. you're which really pursue different the question Greg question then Mass Markets, seems one -- my is, under don't of return that I of sort very the a have the in circumstances, return mean, current Enterprise. that is, preceded of They're and and in on the second sort question, got very

action coming run capital sense. your circumstances, to lot of the to totally of advantage resource-constrained you're there makes sort organically at of it. a in now? of the markets -- right into are right opportunity the a hands there, sell plus be that rest it of full BEAD Wouldn't somebody that just to valuable both to course take Given moment, and the that environment else's process Markets more the isn't opportunity Mass sort in that's a the big But that in with the like has someone put all right the

continuing returns. But again, that I'm want of The our same suggest Well, look a and and focusing of to going this subscriber we're about We're a consumer. X.X would today. to that's We're at talking our add thinking invest to questions continue that to going stopping I exist all in we're questions, set At look, last be range enablements. we're would that investing of year growth million in it. to and we year. on clear, consideration X.X pace build challenge million enablements the that I continuing to we're at time, the those and the penetration XXX,XXX your say enablements kind investment We're of these and you ARPU regularly. at to

pace doing want to everyone business, very, our what competition particularly to very compared of invest high is given to that the a continuing in understand at healthy I So cost clearly, at this capital. moment very

point. an important that's So

is you at time know. Now consolidation. ripe I though, in raised, question. that in one the that happens, that very public And -- right When space is for we been point some consumer would saying we the question the don't have is

profile is to of the improve invest and that consider business those when future. Our improved then to pace focus right job have, we're the at if EBITDA the today that driving in we the But and continue now the And continuing its of we'll on returns. return options. is and builds right comes, our time

that, call. end the with Darcy, Jonathan. Thanks, we'll

that you disconnect and like And participation the much. to using everyone. ask conclude Have lines. This Thank day, great does everyone your very today. thank and we'd the Lumen for a we your you please for call, service conferencing conference