Lumen Technologies Reports Quarterly Cash Dividends

By Thomas Price Saturday, December 5, 2020

Even considering the many difficulties and challenges that so many different businesses have overcome, Lumen Technologies has had a notable and fascinating 2020. Following some serious rebranding and major developments, Lumen Technologies has come out near the end of the year looking stronger than before. With partnerships with companies like Zoom, massive expansion of fiber routes and capabilities, and significant changes to the corporate mindset, there has been a major shift in Lumen Technologies over 2020 in particular. So, what exactly has been happening for Lumen Technologies this year, and how has this made a difference for the company during a very economically trying time?

Lumen Technologies Rebrand

Lumen Technologies has really only been a recent name for the company. In fact, as recently as September, the company was still widely known as CenturyLink. While the company made it clear that their financial plans and reporting were not set to change under the new name of Lumen, it was a marker of the new age into the 4th Industrial Revolution. The Lumen platform will be used during this so-called 4th industrial revolution in order to help consumers and businesses create everything from smart cities, retail and industrial robotics to virtual collaboration and automated factories.

Along with the company’s rebranding announcement, which went so far as to change the name of the Seattle Seahawks home stadium, Lumen Technologies announced the launch of Quantum Fiber. Quantum Fiber is a new digital platform to deliver fiber-based products and services to small businesses and even personal residences through Lumen Technologies’s extensive fiber network and infrastructure. In fact, that infrastructure equates to around 450,000 route fiber miles. This rebrand, however, is far from the only new development happening with Lumen Technologies.

Lumen’s Partnership With Zoom

Lumen Technologies has recently begun a collaboration with Zoom Video Communications to help improve the end to end user experience through the combined use of both company’s network capacity and technology. In their new effort, “Zoom delivered by Lumen,” increased cybersecurity will be among the many upgrades by taking advantage of Lumen’s network security features to boost Zoom’s already built-in security software. When also considering Lumen’s expansive cloud infrastructure and IT, the company also plans to enhance services by improving operational efficiencies through network simplification and rationalization. Additionally, Lumen is expanding the customer’s 5G roadmaps and their own fiber footprint, which will play a major factor and could lead to improved interface and user experience while also mostly likely boosting revenues. This collaboration, along with many other factors, has led to extremely solid numbers in Lumen’s most recent quarterly report.

Lumen’s Quarterly Report and Cash Dividend

In the third quarter of 2020, Lumen Technologies reported a net income of $366 million. This is an over $60 million upgrade from the same quarter in 2019, where the company only earned $302 million. The earnings per share also improved in 2020, with the company reporting $0.34 in 2020 in contrast to $0.28 in 2019. While all of these are positive news, the company’s overall revenue went down to $5.167 billion in comparison to the $5.35 billion in 2019. The company also recently reported its new cash dividend for its shareholders. For the third quarter of 2020, the Board of Directors voted to dole out the regular quarterly cash dividend of $0.25 per share. The dividend will be payable to shareholders from before the date of November 30th of 2020 on December 11 of this year. Considering Lumen Technologies’s many major changes this year, providing regular quarterly dividends and higher earnings per share in the most recent quarter is a large step forward.

Final Conclusions

Lumen Technologies continued to adapt and make the necessary changes needed to remain solid through what has been a truly tumultuous economic year. After a monumental rebrand in September, collaborations with Zoom in November, and its evolutionary path, the company’s strong third-quarter report should assure investors that Lumen Technologies is still valuable and their business plan remains sound.

About the Author

Headshot for author Thomas Price

Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

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