Lumen narrows loss, lifts free cash flow forecast on tax savings
The telecom and networking firm posted an adjusted loss of 3 cents per share, compared with analysts' expectations of a 26-cent loss, according to data compiled by LSEG.
Lumen now expects 2025 free cash flow between $1.2 billion and $1.4 billion, up from a prior range of $700 million to $900 million.
"We're taking it up considerably because of strong performance, but also because of the new tax bill, that definitely benefited us and that allows us to invest," CFO Chris Stansbury told Reuters in an interview.
The new tax law enables companies such as Lumen to deduct more interest expenses and speed up how quickly they write off big investments, boosting near-term cash flow.
Revenue for the quarter ended June 30 was $3.09 billion, slightly below analysts' average estimate of $3.11 billion.
The shortfall included a $46 million giveback tied to the FCC's Rural Digital Opportunity Fund (RDOF), following the sale of Lumen's consumer fiber business to AT&T.
Lumen agreed in May to sell its consumer fiber business to AT&T for $5.75 billion in cash, a move aimed at sharpening its enterprise focus and reducing capital expenditures.
The company also recorded a one-time non-cash goodwill impairment charge of $628 million tied to the divestiture, contributing to a net loss of $915 million for the quarter.
Stansbury said the divestiture would reduce annual capital expenditures by about $1 billion while trimming adjusted core earnings by $150 million.
Lumen reaffirmed its full-year adjusted EBITDA guidance of $3.2 billion to $3.4 billion and said it expects to reach the high end of that range. (Reporting by Akash Sriram in Bengaluru; Editing by Tasim Zahid)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
First Post
8 minutes ago
- First Post
Where are India's super-rich investing their wealth?
India's uber-rich still favour real estate and gold as investments, according to a report by the global equity research and brokerage firm Bernstein. The report also said that the top one per cent hold nearly 60 per cent of the country's wealth, signalling a concerning disparity read more India's richest still choose real estate and gold to park their wealth, according to a report by the global equity research and brokerage firm Bernstein. There is also growing wealth inequality in the country. The top one per cent holds 60 per cent of India's wealth. The firm also pointed out that the rich will keep on becoming wealthier due to this highly concentrated nature of household wealth. Let's take a closer look. STORY CONTINUES BELOW THIS AD How India's uber-wealthy split their wealth About 60 per cent of the wealth possessed by India's uber-rich is held in real estate and gold, ANI reported, citing Bernstein. The uber-rich includes Ultra High Net Worth Individuals (UHNI), High Net Worth Individuals (HNI), and the affluent class. As per the report, India's wealthiest own around $2.7 trillion in serviceable assets, while approximately 60 per cent of wealth is still parked in real estate and gold. India's total household assets are valued at $19.6 trillion, of which 59 per cent or $11.6 trillion is held by the uber-rich. About 60 per cent of the wealth possessed by India's uber-rich is held in physical assets such as real estate and gold. Representational Image/Reuters This top wealth bracket makes up for just one per cent of Indian households. However, they own 60 per cent of the total assets and 70 per cent of the financial assets of the country. About $8.9 trillion owned by India's wealthiest is in the form of non-serviceable assets such as physical real estate, gold, promoter equity, and currency assets. These are traditionally not managed by wealth managers or are harder to reallocate. Just $2.7 trillion of the wealth owned by India's richest is held in serviceable financial assets like direct equity, mutual funds, insurance, and bank or government deposits, as per Bernstein. India's uber-rich There are around 35,000 Ultra High Net Worth Individuals in India with a net worth of more than $12 million. The average income of these uber-rich households is $4.8 million, and they have average assets of $54 million, including $24 million in financial assets. STORY CONTINUES BELOW THIS AD Combined, India's richest own $4.5 trillion in financial assets, nearly 70 per cent of the total financial assets. The firm also mentioned that there is a growing opportunity for Indian wealth managers, particularly in providing services to the country's ultra-wealthy households. 'With rising return expectations and product complexity, demand for professional advice is growing. We see specialised wealth managers benefiting, with a long growth runway. We expect specialised wealth managers to expand from $300 billion in assets under management (11 per cent share) to $1.6 trillion over the next decade, implying an 18 per cent+ CAGR,' said Bernstein. India's wealth disparity According to the report, while income disparity in India is notable, wealth disparity is even more prominent. The top one per cent earns 40 per cent of all income, while the rest hold a small portion of both income and assets. As per a study, the income inequality in India is among the highest in the world, even starker than the United States, Brazil, and South Africa. 'Although growth will continue to create opportunities across the pyramid, we think the rich will get richer. India's uber-rich – an estimated nearly three million households – hold $2.7 trillion in liquid financial wealth, by our estimates,' said Bernstein. STORY CONTINUES BELOW THIS AD India has 284 billionaires, with 13 new joining the elite club in 2024 alone, according to this year's Hurun Global Rich List. With inputs from agencies
Economic Times
8 minutes ago
- Economic Times
Social security to get huge August update for millions of Americans? SSA provides key update
Synopsis The Social Security Administration has reversed its plan to mandate a one-time PIN for phone verification after facing criticism from advocacy groups. The initial proposal would have required millions to use an online PIN, potentially overwhelming offices with in-person visits. Now, the PIN remains optional, offering a faster verification method for those with online accounts while retaining existing phone procedures. Reuters The SSA said it would introduce a new multi-factor authorization policy starting mid-August, adding that it plans to roll out a new Security Authentication Pin The Social Security Administration is walking back a controversial policy proposal that would have required millions of Americans to verify their identity with a one-time PIN when using the agency's national phone line. The rule, which sparked widespread concern among advocacy groups and retirees alike, will no longer be mandatory, the SSA has now confirmed. The SSA's previous controversial policy that would have required millions of Americans to verify their identity with a one-time PIN when using the agency's national phone line sparked massive outrage. In August, the agency proposed that anyone calling on to update personal information, check the status of benefits, or request forms would need to retrieve a Security Authentication PIN (SAP) through their online "my Social Security" account before completing their call. ALSO READ: Social Security in August: Recipients to receive their checks on these dates. How can you make the most of it? The SSA said it would introduce a new multi-factor authorization policy starting mid-August, adding that it plans to roll out a new Security Authentication Pin (SAP) to protect beneficiaries' personal accounts. That plan drew fierce criticism from organizations like AARP and the Center on Budget and Policy Priorities, who said the change could have forced millions of seniors and disabled Americans to make in-person visits to field offices. Later on, the SSA issued a clarification in this announcement of introducing one-time PIN triggered sharp criticism from advocates who suggested that the in-person visits required to facilitate such a shift would put people with disabilities, senior citizens, and rural communities at risk of being left out. As concerns grew, the agency confirmed that in-office visits would not be mandatory for those willing to opt into the SSA's latest security provision. ALSO READ: Stimulus payments August 2025: These US states will receive financial benefit. Do you qualify?'The filing with OMB will be amended to clarify that the use of the Security Authentication PIN (SAP) feature is entirely optional,' a spokesperson for the agency told Newsweek. 'We are encouraging my Social Security account holders to use the enhanced SAP feature to quickly and securely verify their identity when calling the National 800 Number. Beneficiaries and my Social Security account holders are not required to set up or have a SAP for identity verification or manage their benefits over the phone – when calling the National 800 Number, they will continue to use the existing identity verification process.' "The policy is being updated to clarify that the PIN feature is optional," an SSA spokesperson said, according to Nextgov. "Callers who prefer not to use the SAP will still be able to verify their identity using current phone procedures."According to SSA estimates, the now-abandoned mandate could have led to over three million additional trips to Social Security offices annually, overwhelming a system already facing long wait times and staffing shortages. This update brings relief to many older Americans who feared the change would make it harder to access Social Security services—especially those in rural areas with poor internet connectivity or individuals with disabilities that hinder online access. ALSO READ: Emergency air quality alert in New York as Canadian wildfire crisis escalates. Here's how you can track and what you should do Rather than requiring callers to use the Speech Access PIN (SAP) system, the agency is now encouraging those with online accounts to use their PIN to help shorten call times. According to the SSA, using a SAP can cut an average of three minutes off each call. However, it remains just one of several available identity verification options. ALSO READ: Who is Nancy Mace? Lawmaker who loves ICE detention videos now wants to govern South Carolina The SSA initially intended to require in-person visits for verification, eliminating the phone call option. However, this move would have added 3.4 million additional office visits, according to reports. With recent staffing cuts, each SSA employee is now responsible for an estimated 1,480 beneficiaries, per AFGE data—making the policy unmanageable. As a result, phone verification has been reinstated to ease the reversal is the latest in a series of policy shifts aimed at modernizing identity protection while still balancing accessibility. Earlier this year, the agency already made online verification mandatory for more sensitive actions like changing direct deposit information or applying for benefits. But even then, exceptions were made for Supplemental Security Income (SSI) recipients and certain Medicare enrollees.
Mint
8 minutes ago
- Mint
BP makes largest oil & gas discovery in 25 years offshore Brazil, shares surge
British energy major BP said on Monday it has made its largest oil and gas discovery in 25 years offshore Brazil. The discovery is a big boost for the company following its strategic shift away from renewable energy to refocus on fossil fuels. After the announcement, BP shares gained 1.3% by 1107 GMT, outperforming a broader index of European energy companies which was up 0.1%. BP said it planned to create a major new output hub at the Bumerangue discovery in Brazil, which was probably the company's biggest since Shah Deniz in 1999, a gas and condensate field in the Azeri part of the Caspian Sea. According to the company, Shah Deniz - with around 1 trillion cubic metres of gas and 2 billion barrels of condensate initially in place, produced 28 billion standard cubic metres of gas last year. "Brazil is an important country for BP, and our ambition is to explore the potential of establishing a material and advantaged production hub in the country," said Gordon Birrell, BP's production and operations chief, according to Reuters. BP had secured the Bumerangue block in the Santos basin amid pre-salt rocks in deep water offshore Brazil in December 2022 with what it said were "very good commercial terms". The company further said this was its tenth discovery this year, following findings in Trinidad, Egypt, Brazil and others. It had forecast its oil and gas production at 2.3 million to 2.5 million barrels of oil equivalent per day by 2030. In 2024, the production was 2.4 million barrels of oil equivalent. It expects production to be lower in 2025. Early results indicate elevated levels of carbon dioxide in the Brazilian block, BP said, adding that further analysis would give more insight into its potential amid a bigger drilling programme in Brazil. The company is set to report its second quarter results on Tuesday.
