EX-99.1 2 ex991unauditedsupplemental.htm EX-99.1

Lumen Technologies, Inc.
Modified Adjusted EBITDA, Adjusted EBITDA Margin, and Capital Expenditures
(UNAUDITED)
($ in millions)
						3Q22												2Q22												1Q22												4Q21												3Q21												2Q21												1Q21
						Lumen Consolidated, as reported			Adjustments(1)			Lumen Consolidated, as modified						Lumen Consolidated, as reported			Adjustments(1)			Lumen Consolidated, as modified						Lumen Consolidated, as reported			Adjustments(1)			Lumen Consolidated, as modified						Lumen Consolidated, as reported			Adjustments(1)			Lumen Consolidated, as modified						Lumen Consolidated, as reported			Adjustments(1)			Lumen Consolidated, as modified						Lumen Consolidated, as reported			Adjustments(1)			Lumen Consolidated, as modified						Lumen Consolidated, as reported			Adjustments(1)			Lumen Consolidated, as modified
Adjusted EBITDA excluding Special Items(2)						$	1,688		(366)			1,322						1,811			(438)			1,373						1,966			(514)			1,452						2,088			(592)			1,496						2,078			(594)			1,484						2,109			(577)			1,532						2,165			(585)			1,580
Adjusted EBITDA margin, excluding Special Items(2)						38.5		%	66.1		%	34.5		%				39.3		%	64.0		%	35.0		%				42.0		%	68.4		%	37.0		%				43.1		%	71.8		%	37.2		%				42.5		%	71.3		%	36.6		%				42.8		%	68.1		%	37.6		%				43.1		%	69.4		%	37.7		%
Capital expenditures						$	845		(81)			764						761			(143)			618						577			(101)			476						848			(167)			681						690			(141)			549						646			(137)			509						716			(130)			586
(1) Adjustments reflect (i) removal of the financial impacts of the Latin American business divestiture completed August 1, 2022 and the 20-state ILEC business divestiture completed October 3, 2022, (ii) estimates of revenue that the Company would have received under the post-closing commercial agreements with the purchasers of the divested businesses if the transactions had previously been completed; and (iii) removal of the financial impacts related to the Federal Communications Commission's Connect America Fund ("CAF") Phase II program, which lapsed on December 31, 2021.
(2) Excludes Special Items in the amounts of $(527) million, $47 million, $52 million, $19 million, $(31) million, $20 million and $8 million, for periods presented 3Q'22 through 1Q'21, respectively, as reported in the Company’s prior current reports on Form 8-K.

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Lumen Technologies, Inc.
Modified Revenue by Sales Channel and Product Category
(UNAUDITED)
($ in millions)
						3Q22												2Q22												1Q22												4Q21												3Q21												2Q21												1Q21
						Lumen Consolidated, totals(1)			Adjustments(2)			Lumen Consolidated, as modified						Lumen Consolidated, totals(1)			Adjustments(2)			Lumen Consolidated, as modified						Lumen Consolidated, totals(1)			Adjustments(2)			Lumen Consolidated, as modified						Lumen Consolidated, totals(1)			Adjustments(2)			Lumen Consolidated, as modified						Lumen Consolidated, totals(1)			Adjustments(2)			Lumen Consolidated, as modified						Lumen Consolidated, totals(1)			Adjustments(2)			Lumen Consolidated, as modified						Lumen Consolidated, totals(1)			Adjustments(2)			Lumen Consolidated, as modified
Revenue By Sales Channel
Business Segment:
Large Enterprise						$	1,239		(28)			1,211						1,386			(160)			1,226						1,397			(157)			1,240						1,429			(157)			1,272						1,436			(159)			1,277						1,426			(160)			1,266						1,447			(156)			1,291
Mid-Market Enterprise						618			(85)			533						626			(86)			540						636			(87)			549						647			(88)			559						648			(86)			562						661			(88)			573						693			(90)			603
Public Sector						457			(22)			435						493			(24)			469						477			(24)			453						525			(25)			500						531			(31)			500						529			(28)			501						524			(28)			496
Enterprise Channels						2,314			(135)			2,179						2,505			(270)			2,235						2,510			(268)			2,242						2,601			(270)			2,331						2,615			(276)			2,339						2,616			(276)			2,340						2,664			(274)			2,390
Wholesale						903			(64)			839						911			(56)			855						891			(60)			831						893			(62)			831						893			(58)			835						906			(62)			844						931			(56)			875
Business Segment Revenue						3,217			(199)			3,018						3,416			(326)			3,090						3,401			(328)			3,073						3,494			(332)			3,162						3,508			(334)			3,174						3,522			(338)			3,184						3,595			(330)			3,265
Mass Markets Segment Revenue						1,173			(355)			818						1,196			(358)			838						1,275			(424)			851						1,353			(493)			860						1,379			(499)			880						1,402			(509)			893						1,434			(513)			921
Total Revenue						$	4,390		(554)			3,836						4,612			(684)			3,928						4,676			(752)			3,924						4,847			(825)			4,022						4,887			(833)			4,054						4,924			(847)			4,077						5,029			(843)			4,186
Revenue by Product Category
Business Segment:
Grow						$	1,120		(45)			1,075						1,206			(135)			1,071						1,189			(127)			1,062						1,204			(128)			1,076						1,194			(124)			1,070						1,167			(122)			1,045						1,147			(109)			1,038
Nurture						996			(51)			945						1,054			(78)			976						1,087			(82)			1,005						1,093			(80)			1,013						1,118			(79)			1,039						1,138			(83)			1,055						1,172			(87)			1,085
Harvest						916			(116)			800						953			(127)			826						965			(133)			832						993			(138)			855						1,006			(141)			865						1,038			(147)			891						1,086			(146)			940
Other						185			13			198						203			14			217						160			14			174						204			14			218						190			10			200						179			14			193						190			12			202
Total Business Revenue						$	3,217		(199)			3,018						3,416			(326)			3,090						3,401			(328)			3,073						3,494			(332)			3,162						3,508			(334)			3,174						3,522			(338)			3,184						3,595			(330)			3,265
Mass Markets Segment:
Fiber Broadband						$	160		(15)			145						151			(13)			138						145			(13)			132						137			(12)			125						135			(11)			124						130			(11)			119						122			(10)			112
Other Broadband(3)						580			(185)			395						596			(187)			409						610			(190)			420						608			(193)			415						619			(197)			422						632			(199)			433						648			(204)			444
Voice and Other						433			(155)			278						449			(158)			291						520			(221)			299						608			(288)			320						625			(291)			334						640			(299)			341						664			(299)			365
Mass Markets Segment Revenue						1,173			(355)			818						1,196			(358)			838						1,275			(424)			851						1,353			(493)			860						1,379			(499)			880						1,402			(509)			893						1,434			(513)			921
Total Revenue						$	4,390		(554)			3,836						4,612			(684)			3,928						4,676			(752)			3,924						4,847			(825)			4,022						4,887			(833)			4,054						4,924			(847)			4,077						5,029			(843)			4,186
(1) The sales channels within the Business Segment reflect upcoming adjustments to the Company’s 2023 reporting. The International and GAM sales channel is now included in the Large Enterprise sales channel and the Public Sector sales channel is now reported separately from the Large Enterprise sales channel.
(2) Adjustments reflect (i) removal of the financial impacts of the Latin American business divestiture completed August 1, 2022 and the 20-state ILEC business divestiture completed October 3, 2022, (ii) estimates of revenue that the Company would have received under the post-closing commercial agreements with the purchasers of the divested businesses if the transactions had previously been completed, (iii) removal of the financial impacts related to the Federal Communications Commission's Connect America Fund ("CAF") Phase II program, which lapsed on December 31, 2021 and (iv) reclassifications of certain prior period amounts to conform with current period presentation by product category. This fourth adjustment had no impact on total operating revenue for any period.
(3) Other broadband revenue primarily includes revenue from lower speed copper-based broadband services marketed under the CenturyLink brand.

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Lumen Technologies, Inc.
Modified(1) Operating Metrics
(UNAUDITED)
			3Q22			2Q22			1Q22			4Q21			3Q21			2Q21			1Q21
Operating Metrics
Mass Markets broadband subscribers
(in thousands)
Fiber broadband subscribers			813			786			760			735			710			685			659
Other broadband subscribers(2)			2,294			2,406			2,497			2,555			2,623			2,704			2,781
Mass Markets total broadband subscribers(3)			3,107			3,192			3,257			3,290			3,333			3,389			3,440
Mass Markets average revenue per unit (ARPU)
Fiber broadband ARPU			$	60		60			59			58			59			59			59
Mass Markets broadband enable units(4)
(in millions)
Fiber broadband enabled units			3.0			2.9			2.7			2.5			2.5			2.4			2.3
Other broadband enabled units			18.8			18.9			18.9			18.8			18.8			18.9			18.9
Mass Markets total broadband enabled units			21.8			21.8			21.6			21.3			21.3			21.3			21.2
(1) Modified to remove the impacts of the 20-state ILEC business divestiture completed October 3, 2022.
(2) Other broadband subscribers are customers that primarily subscribe to lower speed copper-based broadband services marketed under the CenturyLink brand.
(3) Mass Markets broadband subscribers are customers that purchase broadband connection service through their existing telephone lines, stand-alone telephone lines, or fiber-optic cables. Our methodology for counting our Mass Markets broadband subscribers includes only those lines that we use to provide services to external customers and excludes lines used solely by us and our affiliates. It also excludes unbundled loops and includes stand-alone Mass Markets broadband subscribers. We count lines when we install the service.
(4) Represents the total number of units capable of receiving our broadband services at period end. Other companies may use different methodologies to count their broadband enabled units.