Lumen Technologies Inc (LUMN) 2022 Q1 法說會逐字稿

Greetings, and welcome to Lumen Technologies First Quarter Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded today, Wednesday, May 4, 2022.

您好，歡迎來到 Lumen Technologies 第一季度收益電話會議。 （操作員說明）提醒一下，本次會議將於 2022 年 5 月 4 日星期三錄製。

It is now my pleasure to turn the conference over to Mike McCormack, Senior Vice President of Investor Relations. Please go ahead.

現在我很高興將會議轉交給投資者關係高級副總裁 Mike McCormack。請繼續。

Thank you, Franz. Good afternoon, everyone, and thank you for joining us for the Lumen Technologies First Quarter 2022 Earnings Call. Joining me on the call today are Jeff Storey, President and Chief Executive Officer; Chris Stansbury, Executive Vice President and Chief Financial Officer; and our Senior Vice President and Treasurer, Rafael Martinez-Chapman.

謝謝你，弗蘭茲。大家下午好，感謝您參加 Lumen Technologies 2022 年第一季度財報電話會議。今天和我一起參加電話會議的是總裁兼首席執行官 Jeff Storey；執行副總裁兼首席財務官 Chris Stansbury；以及我們的高級副總裁兼財務主管 Rafael Martinez-Chapman。

Before we begin, I need to call your attention to our safe harbor statement on Slide 2 of our first quarter 2022 presentation, which notes that this conference call may include forward-looking statements subject to certain risks and uncertainties. All forward-looking statements should be considered in conjunction with the cautionary statements on Slide 2 and the risk factors in our SEC filings.

在開始之前，我需要提請您注意我們在 2022 年第一季度演示文稿幻燈片 2 中的安全港聲明，其中指出本次電話會議可能包括受某些風險和不確定性影響的前瞻性聲明。所有前瞻性陳述都應與幻燈片 2 中的警示性陳述以及我們提交給美國證券交易委員會的文件中的風險因素一起考慮。

We will be referring to certain non-GAAP financial measures reconciled to the most comparable GAAP measures that can be found in our earnings press release. In addition, certain metrics discussed today exclude cost for special items, as detailed in our earnings material, all of which can be found on the Investor Relations section of the Lumen website.

我們將提及某些非公認會計原則財務指標，這些指標與我們的收益新聞稿中最具可比性的公認會計原則指標相一致。此外，今天討論的某些指標不包括特殊項目的成本，詳見我們的收益材料，所有這些都可以在 Lumen 網站的投資者關係部分找到。

With that, I'll turn the call over to Jeff.

有了這個，我會把電話轉給傑夫。

Thanks, Mike, and good afternoon, everyone, and thank you for joining us. I'd like to begin the call today by welcoming Chris Stansbury to the Lumen team as our Chief Financial Officer. Chris joined us from Arrow Electronics and brings over 25 years of finance leadership experience.

謝謝，邁克，大家下午好，感謝您加入我們。我想在今天開始電話會議，歡迎 Chris Stansbury 加入 Lumen 團隊，擔任我們的首席財務官。 Chris 從 Arrow Electronics 加入我們，並帶來了超過 25 年的財務領導經驗。

I'm confident that Chris' skills and knowledge will prove invaluable to our organization as we drive toward profitable revenue growth. Chris joins Lumen in an exciting time for our company and its stakeholders. We continue to anticipate closing 2 major transactions this year, which will provide a significant improvement in our revenue mix and generate over $7 billion of net cash proceeds.

我相信 Chris 的技能和知識對於我們的組織來說將是無價之寶，因為我們正在努力實現可盈利的收入增長。 Chris 在我們公司及其利益相關者激動人心的時刻加入 Lumen。我們繼續預計今年將完成兩項重大交易，這將顯著改善我們的收入組合併產生超過 70 億美元的淨現金收益。

Within our business segment, we see strong momentum in our forward indicators like sales in churn, which provide us confidence in achieving our growth objectives. In addition, our Quantum Fiber build plan is ramping, and we expect momentum to continue to accelerate as we drive toward our expectation of hitting 1 million or so new fiber enablements in 2022.

在我們的業務部門中，我們看到客戶流失銷售等前瞻性指標的強勁勢頭，這讓我們有信心實現我們的增長目標。此外，我們的 Quantum Fiber 建設計劃正在加快推進，我們預計隨著我們朝著 2022 年達到 100 萬左右新光纖啟用的目標邁進，勢頭將繼續加速。

On today's call, I will provide some thoughts on our first quarter results as well as the opportunities we see in the year ahead. Chris will discuss the first quarter in more detail, and we'll reserve time after Chris' remarks for your questions.

在今天的電話會議上，我將就我們第一季度的業績以及我們在未來一年看到的機會提供一些想法。 Chris 將更詳細地討論第一季度，我們將在 Chris 發言後為您的問題預留時間。

As we mentioned last quarter, our first quarter revenue performance tends to be seasonally weaker compared to the fourth quarter, and this year was no exception. We continued strong performance in security, cloud, unified communications and IT products, offset by anticipated declines in voice and other as well as lower nonrecurring equipment revenue.

正如我們上個季度提到的，與第四季度相比，我們第一季度的收入表現往往會出現季節性疲軟，今年也不例外。我們在安全、雲、統一通信和 IT 產品方面繼續保持強勁表現，但被語音和其他產品的預期下降以及非經常性設備收入的下降所抵消。

We are managing through supply chain constraints that have caused some delays in our install intervals and significantly slowed down our CPE sales. Although CPE has little impact on the EBITDA and free cash flow, it has a larger impact on revenue on a year-over-year and sequential basis.

我們正在通過供應鏈限制進行管理，這些限制導致我們的安裝間隔出現一些延遲，並顯著減緩了我們的 CPE 銷售。儘管 CPE 對 EBITDA 和自由現金流影響不大，但它對收入的同比和環比影響更大。

We continue to advance the Lumen platform. Last week, we launched our new Lumen marketplace feature. The marketplace provides our Enterprise customers the ability to self-serve a number of our key products and services. No phone calls, no order tickets. The customer selects the services they need from the marketplace and the system takes it from there. This self-service capability resonates with our customers, improving their experience while also improving our speed of delivery and reducing our cost to deliver services.

我們繼續推進 Lumen 平台。上週，我們推出了新的 Lumen 市場功能。該市場為我們的企業客戶提供了自助服務我們的許多關鍵產品和服務的能力。沒有電話，沒有訂票。客戶從市場中選擇他們需要的服務，系統從那裡獲取。這種自助服務能力與我們的客戶產生了共鳴，改善了他們的體驗，同時也提高了我們的交付速度並降低了我們提供服務的成本。

As we continue to execute on our transformation plan with capabilities like the Lumen marketplace, we believe Lumen is well positioned to drive top line growth in the Enterprise market. We continue to win large enterprise and public sector contracts, driving long-term growth in the consumption-based services like security, application delivery and managed services through our edge capabilities and built-in security across a world-class fiber network. These capabilities are complemented by the increasingly all-digital experience of the Lumen platform and supported by very relevant and capable professional services.

隨著我們繼續通過 Lumen 市場等功能執行我們的轉型計劃，我們相信 Lumen 能夠很好地推動企業市場的收入增長。我們繼續贏得大型企業和公共部門的合同，通過我們在世界級光纖網絡中的邊緣能力和內置安全性，推動安全、應用交付和託管服務等基於消費的服務的長期增長。 Lumen 平台日益全數字化的體驗補充了這些功能，並得到了非常相關和有能力的專業服務的支持。

While these large complex deals take longer to turn up, they come with tremendous upside as we push more and more applications to the customer edge, leading to profitable and durable revenue for years to come. Coupling our edge facilities with our dense fiber infrastructure provides machine-to-machine level latency for approximately 97% of the U.S. enterprise locations, allowing customers to implement cloud-based solutions as if all the processing and storage were located within their facilities and increasingly critical capability.

雖然這些大型複雜交易需要更長的時間才能出現，但隨著我們將越來越多的應用程序推向客戶邊緣，它們會帶來巨大的好處，從而在未來幾年帶來可盈利和持久的收入。將我們的邊緣設施與我們密集的光纖基礎設施相結合，為大約 97% 的美國企業位置提供了機器對機器級別的延遲，使客戶能夠實施基於雲的解決方案，就好像所有處理和存儲都位於他們的設施內並且越來越重要能力。

We see traction across traditional industry verticals like retail and health care, but also opportunities for new use cases of our edge compute infrastructure like we're seeing from leading crypto platforms. With the strong sales environment for large enterprise, we expect revenue trends to improve as we install the solutions called for in these more complex deployments.

我們看到了零售和醫療保健等傳統垂直行業的吸引力，但也看到了邊緣計算基礎設施新用例的機會，就像我們從領先的加密平台看到的那樣。隨著大型企業強大的銷售環境，我們預計隨著我們安裝這些更複雜的部署所需的解決方案，收入趨勢將會改善。

On the other hand, we remain dissatisfied with the mid-market enterprise performance to expect improvements as these customers return to more normal operations, post-COVID. We have confidence our products and services serve these customers well and can execute better in this channel.

另一方面，我們仍然對中端市場企業的表現不滿意，期望隨著這些客戶在 COVID 後恢復更正常的運營而有所改善。我們有信心我們的產品和服務可以很好地服務於這些客戶，並且可以在這個渠道中更好地執行。

As you've heard me say before, our path to growth will not be linear, but we are excited about the market's appetite for our new and existing services. Our Enterprise product expansions and the steady increase in the depth and breadth of our platform will continue to open new addressable markets for Lumen.

正如您之前聽到我所說的，我們的增長之路不會是直線的，但我們對市場對我們新服務和現有服務的需求感到興奮。我們的企業產品擴展以及我們平台深度和廣度的穩步增加將繼續為 Lumen 開闢新的潛在市場。

Within our mass markets group, the team is energized as we move deeper into our accelerated ramp of quantum enablement, increasing our addressable footprint and subscriber opportunity. Quantum Fiber is the growth engine for mass markets, and we're excited to update you on our progress.

在我們的大眾市場集團內，隨著我們更深入地加速量子支持，增加我們的可尋址足跡和訂戶機會，團隊充滿活力。量子光纖是大眾市場的增長引擎，我們很高興向您介紹我們的最新進展。

Our most recent Net Promoter Score, which is above 50, demonstrates the Quantum Fiber delivering a very high-quality product with unmatched symmetric capacity within all-digital experience. We continue to enhance the Quantum experience, including the deployment of our multi-gig fiber capability which will be commercially available to mass market customers later this year.

我們最近的淨推薦值超過 50，表明 Quantum Fiber 在全數字體驗中提供了非常高質量的產品，具有無與倫比的對稱容量。我們將繼續增強 Quantum 體驗，包括部署我們的多千兆光纖能力，該能力將於今年晚些時候面向大眾市場客戶提供商業服務。

While it's very early in the adoption phase of this type of capacity, we know there is an insatiable appetite for bandwidth. Our fiber expansions and the architectures we're now deploying with our accelerated build factor in multi-gig services from the beginning and position us for growth coming from VR, AR, gaming, work and learn from home and other high-bandwidth services.

雖然這種容量的採用階段還很早，但我們知道人們對帶寬的需求是無法滿足的。我們的光纖擴展和我們現在正在部署的架構從一開始就在多千兆服務中加速構建因素，並使我們為來自 VR、AR、遊戲、在家工作和學習以及其他高帶寬服務的增長做好準備。

We expect the Quantum capital investment to be concentrated over the next several years, but we believe the capabilities we are enabling will sustain our Quantum product for years into the future. Chris will share more details about our enablement in a minute, but the short answer is that having accelerated our engineering and preconstruction work processes in the first quarter, we expect our build pace to continue to accelerate throughout the year, putting us on track to achieving our goal of 1 million or so enablements in 2022.

我們預計 Quantum 的資本投資將集中在未來幾年，但我們相信我們所啟用的功能將在未來數年內維持我們的 Quantum 產品。 Chris 將在一分鐘內分享有關我們啟用的更多詳細信息，但簡短的回答是，在第一季度加快了我們的工程和施工前工作流程，我們預計我們的建設步伐將在全年繼續加快，使我們有望實現我們在 2022 年實現 100 萬次左右的目標。

As we see it, we are in the first inning of this exciting expansion and are laying the foundation for what we believe is a very large growth opportunity. As with our Enterprise business, we are managing through supply chain constraints within mass markets, but we believe our strong supplier relationships provide support for our build plan. We expect continued strong revenue growth as we ramp enablements and execute on our penetration targets. Quantum delivers a best-in-class service as highlighted by the very positive NPS scores I mentioned, and we are excited to provide this experience to a growing number of mass market locations, both consumer and small business.

正如我們所看到的，我們正處於這一激動人心的擴張的第一局，並正在為我們認為非常大的增長機會奠定基礎。與我們的企業業務一樣，我們正在通過大眾市場中的供應鏈限制進行管理，但我們相信我們強大的供應商關係為我們的構建計劃提供了支持。隨著我們增加啟用和執行我們的滲透目標，我們預計收入將繼續強勁增長。正如我提到的非常積極的 NPS 分數所強調的那樣，Quantum 提供了一流的服務，我們很高興能夠為越來越多的大眾市場地點（包括消費者和小型企業）提供這種體驗。

Beginning this quarter, we are providing the investment community with enhanced mass market disclosures regarding our retained 16-state footprint as well as other important metrics. Overall, we are pleased with our accelerating build pace and look forward to taking meaningful market share as we continue to gain scale.

從本季度開始，我們將向投資界提供更多關於我們保留的 16 個州足跡以及其他重要指標的大眾市場披露。總體而言，我們對加快建設步伐感到滿意，並期待在我們繼續擴大規模的同時獲得有意義的市場份額。

I'd like to provide a quick update on our previously announced transactions. We continue to expect the transaction with Stonepeak to close early in the third quarter, and our confidence is building that we will close as early as July 1. Separation planning is well underway on the Apollo transaction, and we're working closely with various regulatory bodies. We recently received our completeness determination from the Department of Justice. That said, the process has not moved as quickly as we had hoped, resulting in our pushing back the expected close to early in the fourth quarter. This delay has no impact on our confidence in deal closure.

我想提供關於我們之前宣布的交易的快速更新。我們繼續預計與 Stonepeak 的交易將在第三季度初完成，我們的信心正在建立，我們最早將在 7 月 1 日完成。Apollo 交易的分離計劃正在順利進行，我們正在與各種監管機構密切合作身體。我們最近收到了司法部的完整性決定。也就是說，這個過程並沒有像我們希望的那樣迅速，導致我們將預期的時間推遲到接近第四季度初。這種延遲不會影響我們對交易完成的信心。

In a few minutes, Chris will provide a financial update related to the revised closing. But essentially, we will raise our EBITDA and free cash flow guidance based on a presumed (inaudible) closing. As you will hear from Chris, we are passing through the effects of the adjusted closing date but are making no other change to the outlook we provided last quarter.

幾分鐘後，克里斯將提供與修訂後的結算相關的財務更新。但從本質上講，我們將根據假定的（聽不清）關閉來提高我們的 EBITDA 和自由現金流指導。正如您從克里斯那裡聽到的那樣，我們正在經歷調整後的截止日期的影響，但沒有對我們上季度提供的前景做出任何其他改變。

As these deals close in the second half of the year, it's very important to us that we are a strong partner to both Stonepeak and Apollo as they drive further success and serve these valued customers. Beyond the financial effects, these transactions allow Lumen to focus on the rightest opportunities for growth. While improving our pro forma revenue mix, these transactions also highlight the value of the Lumen asset portfolio, and we will continue to opportunistically evaluate further portfolio optimization. As always, we'll be disciplined.

隨著這些交易在下半年完成，對我們來說非常重要的是，我們是 Stonepeak 和 Apollo 的強大合作夥伴，因為他們推動了進一步的成功並為這些尊貴的客戶提供服務。除了財務影響之外，這些交易使 Lumen 能夠專注於最正確的增長機會。在改善我們的備考收入組合的同時，這些交易也凸顯了 Lumen 資產組合的價值，我們將繼續機會主義地評估進一步的投資組合優化。一如既往，我們會遵守紀律。

While there is no urgency for us to divest additional assets, we will pursue transactions that provide clear strategic and economic benefits for Lumen. Our first priority remains achieving profitable revenue growth, and we're actively deploying the assets, personnel and investments across our entire footprint to achieve that goal. Growth is the principal long-term driver of improved shareholder returns, but we believe shareholders should be rewarded as we transform our company to drive that growth and believe returning cash to shareholders in the form of a dividend is a very important part of our overall value proposition.

雖然我們不急於剝離額外資產，但我們將尋求為 Lumen 提供明確戰略和經濟利益的交易。我們的首要任務仍然是實現可盈利的收入增長，並且我們正在積極部署我們整個足蹟的資產、人員和投資以實現這一目標。增長是提高股東回報的主要長期驅動力，但我們認為，當我們改造公司以推動增長時，股東應該得到回報，並相信以股息的形式向股東返還現金是我們整體價值中非常重要的一部分主張。

We do continue to expect an elevated dividend payout ratio as we execute on our Quantum build plan but also expect it to normalize over time as growth improves and Quantum investments normalize in the out years of the plan. We remain committed to a healthy balance sheet and expect a meaningful reduction in our outstanding debt as we prudently reutilize over $7 billion of net proceeds from our announced transactions.

隨著我們執行我們的 Quantum 構建計劃，我們確實繼續預計股息支付率會提高，但也預計隨著增長的改善和 Quantum 投資在計劃結束的幾年內正常化，它會隨著時間的推移而正常化。我們仍然致力於保持健康的資產負債表，並預計隨著我們謹慎地重新利用已宣布交易的超過 70 億美元的淨收益，我們的未償債務將顯著減少。

We continue to believe our market value does not reflect the exciting growth opportunity we are driving toward. And while investing in growth and supporting our dividend are paramount, our Board remains prepared to authorize a share repurchase on short notice, if they believe a buyback provides the best return for our shareholders.

我們仍然相信我們的市場價值並不能反映我們正在推動的令人興奮的增長機會。雖然投資增長和支持我們的股息至關重要，但如果董事會認為回購為我們的股東提供最佳回報，他們仍準備在短時間內授權股票回購。

I would like to end my remarks by thanking Neel Dev for his finance leadership as CFO over the past 3 years as well as his contribution to Lumen and its predecessor companies for over the past 18 years. We thank him and wish him continued success in the future.

最後，我要感謝 Neel Dev 在過去 3 年擔任首席財務官期間的財務領導，以及他在過去 18 年對 Lumen 及其前身公司的貢獻。我們感謝他，並祝愿他在未來繼續取得成功。

With that, I'll turn the call over to Chris to discuss our first quarter results in more detail. Chris?

有了這個，我將把電話轉給克里斯，以更詳細地討論我們的第一季度業績。克里斯？

Thank you, Jeff, and good afternoon, everyone. I want to begin by thanking the team here at Lumen for a warm welcome. While it's only been a few weeks since coming on board, I can tell you that the excitement for our goals and initiatives is palpable. I look forward to being a part of the transformation occurring at Lumen and believe I bring a unique perspective as we execute on our plan.

謝謝你，傑夫，大家下午好。首先，我要感謝 Lumen 團隊的熱烈歡迎。雖然上船才幾週時間，但我可以告訴你，我們的目標和舉措令人興奮不已。我期待成為 Lumen 轉型的一部分，並相信我會在我們執行計劃時帶來獨特的視角。

I'll begin with the financial summary of our first quarter. We reported adjusted EBITDA, excluding special items, of $1.966 billion and generated a 42% margin. A number of items impacted margins this quarter, which I will discuss in more detail later in my remarks.

我將從第一季度的財務摘要開始。我們報告的調整後 EBITDA（不包括特殊項目）為 19.66 億美元，利潤率為 42%。許多項目影響了本季度的利潤率，我將在稍後的評論中更詳細地討論。

Our reported revenue was down 7%, meaningfully impacted by the completion of the CAF II program and seasonal factors within our Enterprise business. Our free cash flow was $846 million. We returned $271 million to our shareholders during the quarter through our quarterly dividend. Additionally, we reduced net debt by over $450 million during the first quarter and by approximately $1.5 billion since the same time last year.

我們報告的收入下降了 7%，受到 CAF II 計劃的完成和我們企業業務中的季節性因素的影響。我們的自由現金流為 8.46 億美元。我們在本季度通過季度股息向股東返還了 2.71 億美元。此外，我們在第一季度減少了超過 4.5 億美元的淨債務，比去年同期減少了約 15 億美元。

As we announced on our last earnings call, we are adjusting our mass markets product revenue reporting categories this quarter to fiber broadband, other broadband and voice and other. The 2 key reasons for these changes are the increasing importance of our Quantum Fiber platform and the completion of the CAF II program. Given this relatively small impact, RDOF support revenue will be included in the voice and other category in our new reporting structure, consistent with other state support payments.

正如我們在上次財報電話會議上宣布的那樣，我們正在將本季度的大眾市場產品收入報告類別調整為光纖寬帶、其他寬帶和語音等。這些變化的兩個關鍵原因是我們的 Quantum Fiber 平台的重要性日益增加以及 CAF II 計劃的完成。鑑於這種相對較小的影響，RDOF 支持收入將包含在我們新報告結構中的語音和其他類別中，與其他州支持付款一致。

We currently expect to begin recognizing RDOF support revenue during the second quarter. But even on a full year basis, RDOF will have a very small impact on our results, particularly after the expected sale of our ILEC assets in the fourth quarter. We've also provided added disclosures for our mass market segment associated with our 16 retained states, which we have referred to as RemainCo in our earnings materials, and those are internal estimates, which may be subject to change. These materials can be found in the Investor Relations section of our website.

我們目前預計將在第二季度開始確認 RDOF 支持收入。但即使在全年的基礎上，RDOF 對我們的業績影響也非常小，尤其是在我們預期在第四季度出售我們的 ILEC 資產之後。我們還為與我們的 16 個保留狀態相關的大眾市場部分提供了額外的披露，我們在收益材料中將其稱為 RemainCo，這些是內部估計，可能會發生變化。這些材料可以在我們網站的投資者關係部分找到。

Our goal is to allow investors and others to begin to model our mass market segment as we near the divestiture of the 20-state ILEC business to Apollo. Given the complexity, we do not intent to provide prior period estimates, but will provide RemainCo estimated quarterly results through the close of the transaction with Apollo.

我們的目標是在我們接近將 20 個州的 ILEC 業務剝離給 Apollo 時，讓投資者和其他人開始為我們的大眾市場部門建模。鑑於復雜性，我們不打算提供前期估計，但將在與 Apollo 的交易結束時提供 RemainCo 估計的季度結果。

In addition, we're actively working to help investors better understand the drivers of our business segment and hope to provide additional disclosures in future periods.

此外，我們正在積極努力幫助投資者更好地了解我們業務部門的驅動因素，並希望在未來期間提供更多披露。

We experienced typical sequential seasonal pressures on revenue in the first quarter with an added headwind from supply chain constraints. With respect to supply chains, we've been managing through the impact well, but this is an ongoing issue that we will continue to manage and watch very closely, and the same can be said for the impacts of inflation.

我們在第一季度經歷了典型的連續季節性收入壓力，供應鏈限制帶來了額外的逆風。關於供應鏈，我們一直在很好地應對影響，但這是一個持續存在的問題，我們將繼續密切關注和管理，通貨膨脹的影響也是如此。

Moving on to revenue performance. On an adjusted basis, revenue was down 2.2% sequentially, similar to the 2% sequential decline we had in the first quarter of last year. On a year-over-year basis, total revenue declined 7% in the first quarter to $4.676 billion. Year-over-year metrics were materially impacted by the end of the CAF II program, which was partially offset by a related onetime CAF II revenue release in the first quarter of 2022.

繼續關注收入表現。經調整後，收入環比下降 2.2%，與去年第一季度 2% 的環比下降相似。與去年同期相比，第一季度總收入下降 7% 至 46.76 億美元。同比指標受到 CAF II 計劃結束的重大影響，這部分被 2022 年第一季度相關的一次性 CAF II 收入發布所抵消。

When adjusted for CAF II, foreign currency and the sale of our last remaining correctional facilities business last quarter, the year-over-year rate of decline was 5.5% versus a decline of 5.2% last quarter on the same basis.

在對 CAF II、外彙和上個季度我們最後剩餘的懲教設施業務的出售進行調整後，同比下降 5.5%，而上個季度在同一基礎上下降 5.2%。

Within our 2 key segments, business revenue declined 5.4% to $3.401 billion year-over-year. When excluding foreign currency headwinds and the sale of our correctional facilities business, revenue declined 4.9% year-over-year. Mass markets revenue declined 11.1% to $1.275 billion year-over-year.

在我們的兩個關鍵部門中，業務收入同比下降 5.4% 至 34.01 億美元。排除外匯逆風和出售我們的懲教設施業務後，收入同比下降 4.9%。大眾市場收入同比下降 11.1% 至 12.75 億美元。

Adjusting for the CAF II impacts mentioned earlier, mass markets revenue was down 7.2%, in line with the performance in the fourth quarter. This will be the last quarter with the year-over-year negative impact of our Prism TV shutdown which was about a 70-basis point headwind to growth this quarter.

調整前面提到的 CAF II 影響後，大眾市場收入下降 7.2%，與第四季度的表現一致。這將是最後一個季度，我們的 Prism TV 關閉帶來了同比負面影響，這對本季度的增長造成了約 70 個基點的逆風。

Wholesale revenue was down 4.3% year-over-year similar to last quarter's performance. We continue to manage this business for cash.

批發收入同比下降 4.3%，與上一季度的表現相似。我們繼續以現金管理這項業務。

As you look at our enterprise channels, which is our business segment, excluding wholesale, reported revenue declined 5.8% year-over-year. When adjusting for the impacts of foreign currency, and the sale of the correctional facilities business, revenue was down 5.1%. Our exposure to legacy voice and other revenue which we also manage for cash has dropped by 340 basis points year-over-year and now represents less than 21% of enterprise channel revenue.

當您查看我們的企業渠道時，這是我們的業務部門，不包括批發，報告的收入同比下降 5.8%。在調整外幣影響和懲教設施業務出售後，收入下降 5.1%。我們也以現金管理的傳統語音和其他收入的敞口同比下降了 340 個基點，現在佔企業渠道收入的不到 21%。

IGAM revenue declined 2.1% year-over-year. On a constant currency basis, IGAM declined 1.3% year-over-year versus a 1% year-over-year decline in the fourth quarter on the same basis. We had particular strength in our managed security, cloud services and IP services. Large enterprise revenue declined 8% year-over-year. The sale of the correctional facilities business is reflected in this channel and resulted in an approximate $10 million negative impact year-over-year. Normalizing for this sale, large enterprise declined 6.9% year-over-year.

IGAM 收入同比下降 2.1%。按固定匯率計算，IGAM 同比下降 1.3%，而第四季度在同一基礎上同比下降 1%。我們在託管安全、雲服務和 IP 服務方面具有特殊優勢。大型企業收入同比下降 8%。懲教設施業務的出售反映在該渠道中，同比產生了約 1000 萬美元的負面影響。此次銷售正常化，大型企業同比下降 6.9%。

We had growth in managed security, cloud services, unified communications and IP services. Overall, large enterprise growth was negatively impacted by equipment in our IT Solutions business, both of which tend to experience quarterly fluctuations. Mid-market enterprise declined 8.2% year-over-year. As Jeff said, we're not yet satisfied with the mid-market results but see the subsiding of COVID as positive for this channel. We had growth in cloud, IT services and IP services as well as wavelengths, offset by lower voice revenue and onetime revenue from CPE sales.

我們在託管安全、雲服務、統一通信和 IP 服務方面取得了增長。總體而言，大型企業的增長受到我們 IT 解決方案業務中的設備的負面影響，這兩者都傾向於經歷季度波動。中端市場企業同比下降 8.2%。正如 Jeff 所說，我們對中端市場的結果還不滿意，但認為 COVID 的消退對這個渠道是積極的。我們在雲、IT 服務和 IP 服務以及波長方面都有增長，但被語音收入的下降和 CPE 銷售的一次性收入所抵消。

As I mentioned earlier, on an adjusted basis, mass markets revenue declined 7.2% year-over-year. For ease of comparison and footnoted on our slide, we recognized approximately $14 million of our $59 million CAF II benefit this quarter within the 16 retained states. This compares to approximately $53 million and $54 million of CAF II revenue recognized in the retained states in the fourth quarter of 2021 and the first quarter of 2021, respectively.

正如我之前提到的，在調整後的基礎上，大眾市場收入同比下降 7.2%。為了便於比較和在我們的幻燈片上添加腳註，我們在本季度的 16 個保留州內確認了本季度 5900 萬美元的 CAF II 收益中的大約 1400 萬美元。相比之下，2021 年第四季度和 2021 年第一季度在保留州確認的 CAF II 收入分別約為 5300 萬美元和 5400 萬美元。

Our mass markets fiber broadband revenue within our RemainCo footprint grew by nearly 18% year-over-year and in the first quarter represented more than 15% of our total mass market revenue. With the anticipated close of our ILEC sale, our exposure to legacy voice and other services will improve and reduce our annualized voice and other revenue by over $650 million based on our first quarter 2022 results and after adjusting for the CAF II release.

我們在 RemainCo 覆蓋範圍內的大眾市場光纖寬帶收入同比增長近 18%，第一季度占我們大眾市場總收入的 15% 以上。隨著我們 ILEC 銷售的預期結束，我們對傳統語音和其他服務的敞口將根據我們 2022 年第一季度的結果並在針對 CAF II 發布進行調整後，改善和減少我們的年化語音和其他收入超過 6.5 億美元。

During the quarter, we added 27,000 Quantum Fiber customers, roughly in line with last quarter as we pivot to our market-based approach and prepared for our significant shift in the go-to-market strategy. This brings our total quantum subscribers to 830,000 with 762,000 of the subscribers within the 16 retained states. During the quarter, total enablements were approximately 160,000 with approximately 130,000 of those enablements located in our 16 retained states, bringing total enablements in the retained states to $2.67 million as of March 31, with approximately 250,000 additional locations enabled in the business to be sold to Apollo.

在本季度，我們增加了 27,000 家 Quantum Fiber 客戶，與上一季度大致持平，因為我們轉向以市場為基礎的方法，並為我們的上市戰略的重大轉變做好準備。這使我們的量子訂閱者總數達到 830,000，其中 762,000 個訂閱者位於 16 個保留狀態中。在本季度，總啟用量約為 160,000，其中大約 130,000 個位於我們保留的 16 個州，使截至 3 月 31 日保留狀態的總啟用量達到 267 萬美元，業務中啟用的大約 250,000 個額外位置將出售給阿波羅。

ARPU in the retained states was approximately $59 million. And we see ARPU expansion opportunities with the adoption of in-home WiFi solutions, security services and multi-gig speeds among others. As you frame our quantum journey, we wanted to share a few important expectations for the positive impact product will have in our future results. We expect that as Quantum ramps, we will achieve overall broadband revenue and subscriber growth within mass markets in the second half of 2023.

保留州的 ARPU 約為 5900 萬美元。隨著家庭 WiFi 解決方案、安全服務和多千兆速度等的採用，我們看到了 ARPU 的擴展機會。在您構建我們的量子之旅時，我們希望分享一些對產品將對我們未來結果產生積極影響的重要期望。我們預計，隨著 Quantum 的發展，我們將在 2023 年下半年在大眾市場實現整體寬帶收入和用戶增長。

As of March 31, our penetration of legacy broadband subscribers in our retained 16 states was down to approximately 13%, highlighting the low risk of quantum cannibalization and our significant share-taking opportunity as we accelerate the quantum build. In fact, roughly 90% of our 2021 fiber gross adds were new to Lumen. Within the same footprint, our quantum penetration stood at approximately 29%, but we would expect that to fall in the near term as we ramp enablements. That said, today, we are pleased to announce that our Quantum 2020 vintage penetration is greater than 22% and ramping nicely, supporting our expectations for the longer-term penetration opportunity.

截至 3 月 31 日，我們在保留的 16 個州中對傳統寬帶用戶的滲透率下降至約 13%，突顯了量子自相殘殺的低風險以及我們在加速量子建設時的重大分享機會。事實上，我們 2021 年的纖維總新增量中約有 90% 是 Lumen 新增的。在相同的足跡內，我們的量子滲透率約為 29%，但我們預計隨著我們增加支持率，這一數字將在短期內下降。也就是說，今天，我們很高興地宣布，我們的 Quantum 2020 年份滲透率超過 22% 並且增長良好，支持了我們對長期滲透機會的預期。

This is bolstered by our current Quantum NPS score within RemainCo, which is greater than positive 50, highlighting the quality, speed and customer-friendly nature of our fiber offering. Quantum is an all-digital prepaid product that features simple pricing with no contracts, helping reduce call center volumes and bolstering our NPS scores.

我們目前在 RemainCo 中的 Quantum NPS 得分支持了這一點，該得分高於 50 分，突出了我們光纖產品的質量、速度和客戶友好性。 Quantum 是一款全數字預付費產品，其特點是定價簡單，無需合同，有助於減少呼叫中心的工作量並提高我們的 NPS 分數。

Turning to adjusted EBITDA. For the first quarter of 2022, adjusted EBITDA, excluding special items, was $1.966 billion compared to $2.165 billion in the year ago quarter. Our adjusted EBITDA this quarter benefited from $59 million from the CAF II revenue release mentioned earlier.

轉向調整後的 EBITDA。 2022 年第一季度，不包括特殊項目的調整後 EBITDA 為 19.66 億美元，而去年同期為 21.65 億美元。我們本季度調整後的 EBITDA 受益於前面提到的 CAF II 收入發布的 5900 萬美元。

Special items this quarter totaled $52 million and were related primarily to transaction and separation activities. Our adjusted EBITDA margin was 42% this quarter. When comparing margins to the year-ago period, you should consider the nonrecurring CAF II benefit of $59 million this quarter and the $123 million of high-margin CAF II subsidy revenue in the prior year period. When adjusting for these impacts, our first quarter 2022 margin would have been 41.3% compared to 41.6% in the year ago period.

本季度的特殊項目總計 5200 萬美元，主要與交易和分離活動有關。本季度調整後的 EBITDA 利潤率為 42%。在將利潤率與去年同期進行比較時，您應該考慮本季度 5900 萬美元的非經常性 CAF II 收益和去年同期 1.23 億美元的高利潤率 CAF II 補貼收入。調整這些影響後，我們 2022 年第一季度的利潤率為 41.3%，而去年同期為 41.6%。

Capital expenditures for the first quarter of 2022 were $577 million. We continue to focus on capital efficiencies; however, when you think about our capital spending, be aware that we had a meaningful year-end 2021 spend ahead of our quantum acceleration. Lower capital expenditures this quarter does not change our outlook for the year. In the first quarter, capital expenditures represent accelerated investment in engineering and preconstruction activities. Future quarters will represent accelerated construction results.

2022 年第一季度的資本支出為 5.77 億美元。我們繼續關注資本效率；但是，當您考慮我們的資本支出時，請注意，在我們的量子加速之前，我們有一個有意義的 2021 年年底支出。本季度較低的資本支出不會改變我們對今年的展望。在第一季度，資本支出代表對工程和施工前活動的加速投資。未來幾個季度將代表加速建設成果。

Also note that there will be timing differences with respect to reported CapEx based upon payment terms for our purchases. Our full year capital guidance remains unchanged. With respect to our maintenance capital spending, as we look at the average over the last few years, it has been in the $400 million to $500 million a year range. In the first quarter of 2022, the company generated free cash flow of $846 million which was positively impacted by the timing of capital expenditures, as I mentioned.

另請注意，根據我們購買的付款條件，報告的資本支出會存在時間差異。我們的全年資本指引保持不變。關於我們的維護資本支出，當我們查看過去幾年的平均水平時，它一直在每年 4 億美元到 5 億美元之間。正如我所提到的，在 2022 年第一季度，該公司產生了 8.46 億美元的自由現金流，這受到資本支出時機的積極影響。

Moving on to our outlook. We are adjusting our expectations for both EBITDA and free cash flow to reflect the expected closing date of our ILEC transaction, as Jeff highlighted earlier. Our capital expenditure guidance range remains unchanged given the relatively small impact of the new expected ILEC closing date on that metric.

繼續我們的展望。正如 Jeff 早些時候強調的那樣，我們正在調整對 EBITDA 和自由現金流的預期，以反映我們 ILEC 交易的預期結束日期。鑑於新的預期 ILEC 截止日期對該指標的影響相對較小，我們的資本支出指導範圍保持不變。

We now expect 2022 adjusted EBITDA between $6.9 billion and $7.1 billion and free cash flow between $2 billion and $2.2 billion. In order to provide a bit more detail on the other category within the waterfall chart in our earnings presentation, you should consider 3 main moving parts: investing in OpEx for growth, the synergies expected related to transactions and lower transformation cost savings expected in 2022 as we focus resources on separating the pending divestitures. I think it's fair to consider these 3 items as roughly equal in size.

我們現在預計 2022 年調整後的 EBITDA 將在 69 億美元至 71 億美元之間，自由現金流在 20 億美元至 22 億美元之間。為了在我們的收益演示文稿中提供有關瀑布圖中其他類別的更多詳細信息，您應該考慮 3 個主要移動部分：投資運營支出以實現增長、預期與交易相關的協同效應以及 2022 年預期的較低轉型成本節約我們將資源集中用於分離待決的資產剝離。我認為將這 3 個項目視為大小大致相等是公平的。

Also, be aware that we expect both the synergies as well as the pause on transformation savings to be transitory in nature. Recall that in terms of special items for 2022, we expect a significant ramp-up in costs compared to prior years, primarily driven by dedicated third-party costs to support transition services for the divestitures. The cost for these services are removed from adjusted EBITDA. The reimbursement for these services will be in other income with no material net impact to our cash flows and reflected in our schedules of non-GAAP items impacting net income.

此外，請注意，我們預計協同效應以及轉型節省的暫停本質上都是暫時的。回想一下，就 2022 年的特殊項目而言，與往年相比，我們預計成本將大幅上升，這主要是由專門的第三方成本推動的，以支持資產剝離的過渡服務。這些服務的成本已從調整後的 EBITDA 中扣除。這些服務的報銷將計入其他收入，對我們的現金流沒有重大淨影響，並反映在我們影響淨收入的非公認會計原則項目的時間表中。

In closing, I look forward to engaging with all of you and our analysts and investor communities and hope to have an opportunity as the year progresses to meet many of you in person to discuss what I see as a tremendous opportunity for shareholder returns here at Lumen. Our team is focused on executing on our growth initiatives for Lumen Enterprise and scaling our Quantum Fiber business, which we expect as we drive our return to top line growth.

最後，我期待與你們所有人以及我們的分析師和投資者社區進行交流，並希望隨著時間的推移有機會親自與你們中的許多人會面，討論我認為在 Lumen 獲得股東回報的巨大機會.我們的團隊專注於執行 Lumen Enterprise 的增長計劃並擴展我們的 Quantum Fiber 業務，我們預計這將推動我們恢復收入增長。

As a reminder, in addition to free cash flow generated from the business, we expect about $7 billion in discretionary cash proceeds later this year from the transactions after the transfer of debt, taxes and transaction-related costs. The combination of free cash flow from the business and proceeds from portfolio rationalization efforts support our 2022 capital allocation priorities.

提醒一下，除了業務產生的自由現金流外，我們預計在轉移債務、稅收和交易相關成本後的交易中，今年晚些時候將產生約 70 億美元的可自由支配現金收益。業務的自由現金流與投資組合合理化工作的收益相結合，支持我們 2022 年的資本配置優先事項。

With that, we are ready for your questions.

有了這個，我們準備好回答你的問題了。

(Operator Instructions) Our first question is from Batya Levi with UBS.

（操作員說明）我們的第一個問題來自瑞銀的 Batya Levi。

Two questions. First, can you provide a little bit more color on the Enterprise trends that you're seeing, maybe the sales funnel versus bookings? And when would you expect to see a trough maybe in the revenue decline in that segments? And Chris, maybe a question for you. You did provide priorities for capital allocation with investment on the top of the list. Can you talk a little bit about how you would weigh the shareholder return, the dividend payment versus the debt pay down, if the revenue decline persists?

兩個問題。首先，您能否為您所看到的企業趨勢提供更多色彩，也許是銷售漏斗與預訂？您預計什麼時候會看到該細分市場的收入下降的低谷？還有克里斯，也許是你的問題。您確實提供了資本配置的優先級，其中投資位於列表頂部。如果收入持續下降，您能否談談您將如何權衡股東回報、股息支付與債務償還？

Sure, Batya. I'll take the first question. I mentioned in the prepared remarks that we see strong forward indicators. And what that looks like to me is, number one, sales. If you look at our first quarter sales with very solid sales in the quarter, much in line with the strong sales we talked about in the fourth quarter. I get that we don't always see this in revenue yet. And so I'll talk a little bit about that. But the sales for large enterprise, in particular, is the first area that I point to.

當然，巴蒂亞。我會回答第一個問題。我在準備好的評論中提到，我們看到了強勁的前瞻性指標。在我看來，第一，銷售。如果您看一下我們第一季度的銷售額，該季度的銷售額非常穩定，這與我們在第四季度談到的強勁銷售額非常吻合。我知道我們並不總是在收入中看到這一點。所以我會談談這個。但是，尤其是大型企業的銷售，是我指出的第一個領域。

And there's good news and bad news in that fact. We've seen great success in very large complex deals with large enterprise customers. These aren't single product plays, and we integrate more closely with the customers' environment with multiple products that makes it very strategic and sticky relationship. These deals shift our revenue mix and move up the stack with managed services and security and edge capabilities. So they're good margin products moving up the stack and make those relationships much stickier.

事實上，有好消息也有壞消息。我們在與大型企業客戶的大型複雜交易中取得了巨大成功。這些不是單一的產品遊戲，我們通過多種產品更緊密地與客戶環境集成，這使得它具有非常戰略性和粘性的關係。這些交易改變了我們的收入組合，並通過託管服務、安全和邊緣功能提升了堆棧。因此，它們是在堆棧中向上移動的良好利潤產品，並使這些關係更加粘稠。

Some of the bad news associated with the fact of these big deals is they convert to revenue more slowly. They have thousands of locations, takes months and months to coordinate with the customer to turn up the locations. And so they don't convert to revenue quite as quickly as some of our mid-market type deals. The other thing is we need to make sure that we can -- as Chris and I both said, we need to make sure that we are driving more success in our mid-market sales. That's more of the flywheel business Lumen and we need to make sure that we're driving that.

與這些大宗交易相關的一些壞消息是它們轉化為收入的速度較慢。他們有數千個地點，需要幾個月和幾個月的時間與客戶協調才能找到這些地點。因此，它們轉化為收入的速度不如我們的一些中端市場類型的交易。另一件事是我們需要確保我們可以 - 正如克里斯和我都說過的那樣，我們需要確保我們在中端市場銷售中取得更大的成功。這更多的是飛輪業務流明，我們需要確保我們正在推動它。

Now lastly, I'll point out that we discussed in this in the fourth quarter call, and that is seasonality tends to impact the first quarter more than it does other quarters. And we've seen that for many years. It's not new to us. And we've talked about it for many years. Looking at the first quarter '21 seasonal -- sequential revenue comparison is pretty typical to what we've seen in previous years. And so those are some of the things that I look at, not really to predict where a trough is, and we don't give revenue guidance.

最後，我要指出我們在第四季度電話會議中討論過的問題，那就是季節性對第一季度的影響往往比對其他季度的影響更大。我們已經看到了很多年。這對我們來說並不新鮮。我們已經談論了很多年。看看 21 年第一季度的季節性 - 連續收入比較與我們在前幾年看到的情況非常典型。所以這些是我看的一些東西，並不是真的預測低谷在哪裡，我們不提供收入指導。

I'll tell you that we are looking at what type of information we provide and may be something that we look at in the future to provide, but we really don't give revenue guidance at this point. Chris, do you want to ask -- answer that?

我會告訴你，我們正在研究我們提供的信息類型，並且可能是我們將來考慮提供的信息，但我們目前確實沒有提供收入指導。克里斯，你想問——回答嗎？

Sure. Yes, Batya, on the question regarding investment versus dividend. Obviously, that -- I mean that answer is growth is the priority, and dividends are a close second to that. But we do have flexibility around the CapEx, it's dynamic. We can adjust as we go. And as Jeff mentioned, the dividend payout ratio will move around as we move through the investment phase. So when you look at all the variables that go into the capital allocation, I think the investment and the dividend are both absolutely things that we can do. And we've got other choice points that we can make along the way as needed.

當然。是的，Batya，關於投資與股息的問題。顯然，我的意思是答案是增長是首要任務，股息緊隨其後。但我們在資本支出方面確實有靈活性，它是動態的。我們可以隨時調整。正如傑夫所說，隨著我們進入投資階段，股息支付率將發生變化。因此，當您查看參與資本配置的所有變量時，我認為投資和股息都是我們絕對可以做的事情。我們還有其他選擇點，我們可以根據需要在此過程中做出選擇。

Maybe just a quick follow-up. Do you also have a target on when you would like to take the leverage down to the original target, I guess, closer to 3% or 3.25%?

也許只是一個快速的跟進。您是否也有一個目標，您希望何時將槓桿率降低到原始目標，我猜，接近 3% 或 3.25%？

That's a longer-term goal. I think it's the right goal. But obviously, as we move through the current investment window, having a strong balance sheet is critical, and that's something that we'll have a mindful eye towards. But I do think we'll be more in the neighborhood of where we are now. That's -- I know what we've talked about in the past, relatively net leverage neutral. And that's what the focus will be as we go forward.

這是一個長期目標。我認為這是正確的目標。但顯然，隨著我們通過當前的投資窗口，擁有強大的資產負債表至關重要，這是我們將密切關注的事情。但我確實認為我們會更接近我們現在所處的位置。那是 - 我知道我們過去談到的，相對淨槓桿中性。這就是我們前進的重點。

Our next question is from Simon Flannery with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Simon Flannery。

Great. Congratulations, Chris, on the new role. I wonder if you could -- just for housekeeping, just explain to us what happened with the CAF II? I think most people had assumed we were done with that at the end of last year. So what exactly is going on there? And why did you have to release it? And is there any more to go for the rest of the year?

偉大的。恭喜克里斯，擔任新角色。我想知道你是否可以——只是為了做家務，向我們解釋一下 CAF II 發生了什麼？我想大多數人都認為我們在去年年底就已經完成了。那麼那裡到底發生了什麼？為什麼你必須釋放它？在今年剩下的時間裡還有更多的事情要做嗎？

And then just any comments on the macro environment. There's certainly been concerns about consumers and businesses suffering from higher fuel prices, rising interest rates, et cetera. Are you seeing anything as you go through March and April, the uncertainty around the war you referenced the supply chain? But any comments there on just the general operating environment would be great?

然後是對宏觀環境的任何評論。人們當然擔心消費者和企業會因燃油價格上漲、利率上升等而受到影響。在三月和四月的過程中，你有沒有看到任何關於你提到供應鏈的戰爭的不確定性？但是，任何關於一般操作環境的評論都會很棒嗎？

Sure. On the CAF II, this was something that was contemplated in the guidance for the year. And as the program winds down and audits are completed by various states, there were reserves that we had in place, and we've been able to release some of those reserves as those have been closed down. There's only a bit left to go smaller than what we've released here, but that's really the impact that you're seeing in the quarter.

當然。在 CAF II 上，這是本年度指南中考慮的內容。隨著該計劃的結束和各個州的審計工作完成，我們已經有了準備金，並且我們已經能夠釋放其中一些已經關閉的準備金。只剩下一點點比我們在這裡發布的要小，但這確實是您在本季度看到的影響。

And you never know what those reserves exactly are going to be until you go through those audits and things. So that's the process that we have to go through. On the macro environment, I mean, we see some impacts of the war with certain customers, our government customers and some things slowing down, making sure that doing upgrades to the network while you've got something that critical going on. So we see some impacts of that.

在你完成這些審計和事情之前，你永遠不知道這些儲備到底是什麼。這就是我們必須經歷的過程。在宏觀環境上，我的意思是，我們看到了與某些客戶、我們的政府客戶和一些事情的戰爭的一些影響，以及一些事情的放緩，確保在你有一些關鍵的事情發生時對網絡進行升級。所以我們看到了一些影響。

Haven't really seen impacts of inflation on customer buying habits. We still see some impact on -- from COVID on customers not being fully back into the office or having slowed evaluations of new solutions during COVID and just now getting back up to speed on those, but there really no macro comments that we would make about inflation or other things like that.

還沒有真正看到通貨膨脹對客戶購買習慣的影響。我們仍然看到一些影響——來自 COVID 對客戶沒有完全回到辦公室或在 COVID 期間放慢對新解決方案的評估以及剛剛恢復速度的影響，但我們真的沒有宏觀評論通貨膨脹或其他類似的事情。

And what about cost control within your own business from inflation, your exposure to energy and labor cost inflation?

那麼，您自己的企業內的成本控制如何應對通貨膨脹、能源和勞動力成本通脹的風險？

Yes. So we work really hard on controlling inflation within our own business. If you -- from a fuel standpoint, we have worked over the past few years through our ESG efforts to really reduce our fuel consumption. And we've been pretty proud of what we've done there. And so it's got an impact, but it's got a smaller impact than it would have had 4 or 5 years ago.

是的。因此，我們非常努力地控制我們自己業務中的通貨膨脹。如果您——從燃料的角度來看，我們在過去幾年中通過我們的 ESG 努力真正降低了我們的燃料消耗。我們為我們在那裡所做的一切感到非常自豪。所以它產生了影響，但它的影響比四五年前要小。

And with respect to supply chains, we do have trouble with supply chains. We see that lingering effect from vendors being able to deliver equipment to us, wanting a little more money for what the equipment they are delivering. But we've got great relationships with them, and we're working through all of that to mitigate the risks and the pressures that come from inflation.

關於供應鏈，我們確實在供應鏈方面遇到了麻煩。我們看到供應商能夠向我們提供設備的揮之不去的影響，他們想要更多的錢來購買他們提供的設備。但我們與他們建立了良好的關係，我們正在努力解決所有這些問題，以減輕通脹帶來的風險和壓力。

Our next question is from David Barden with Bank of America.

我們的下一個問題來自美國銀行的 David Barden。

Welcome, Chris. I guess my first question, Chris, going back to your answer, I think the Batya's question. I think that when we look at the pro forma organization into 2023 from a free cash flow standpoint, basically all the money is spoken for when we look at CapEx investments and dividends, and it doesn't really leave anything less deleveraging. And if we do something on the stock buyback program, it means we're willing to take leverage up from where it is currently.

歡迎，克里斯。我想我的第一個問題，克里斯，回到你的答案，我認為是 Batya 的問題。我認為，當我們從自由現金流的角度來看 2023 年的備考組織時，基本上所有的錢都是在考慮資本支出投資和股息時，它並沒有真正減少去槓桿化。如果我們在股票回購計劃上做點什麼，這意味著我們願意從目前的水平上提高槓桿率。

So I guess I'm wondering kind of as you come in with fresh eyes on the balance that we're trying to strike with a fairly narrow margin for error in '23 on cash, kind of how you perceive the willingness of the company to take up or the ability to take down leverage. And then I guess, if I could, on -- kind of the second question was just on the comments just that you made about the progress in Quantum, the expansion of the footprint and availability. Your comments about maybe not getting credit in the stock for some of these investments that you're making. I think that the people would love to kind of get a sense as to where the time in the future is that we see a crossover where the fiber net adds are beginning to turn the corner on the legacy broadband net add decline?

所以我想我想知道當你帶著新的眼光進來時，我們正試圖在 23 年現金上以相當小的誤差來實現平衡，你如何看待公司願意承擔或降低杠桿的能力。然後我想，如果可以的話，第二個問題只是關於您對 Quantum 的進展、足跡和可用性的擴展所做的評論。您關於您正在進行的某些投資可能沒有在股票中獲得信用的評論。我認為人們很想知道未來的時間是什麼時候，我們會看到光纖網絡增加開始扭轉傳統寬帶網絡增加下降的轉折點？

Yes. So I'll take the first one -- the second one first. And Chris said in his prepared remarks that at that time the second half of 2023, we see subscriber -- broadband -- overall broadband subscriber net adds growing in the second half of '23. And we see overall broadband revenue growing in the second half of '23. And so Chris gave those comments in his prepared remarks. Chris, you want -- the leverage?

是的。所以我會先拿第一個——第二個。克里斯在他準備好的講話中說，當時 2023 年下半年，我們看到用戶 - 寬帶 - 整體寬帶用戶網絡在 23 年下半年增長。我們看到整體寬帶收入在 23 年下半年增長。所以克里斯在他準備好的評論中給出了這些評論。克里斯，你想要——槓桿？

Yes, sure. And I would just add to that, that we made a real effort this quarter to provide more disclosure and transparency around mass markets, and we'll continue to do that. Obviously, as we go forward, we'll work on the Enterprise side.

是的，當然。我只想補充一點，我們在本季度做出了真正的努力，以在大眾市場提供更多的披露和透明度，我們將繼續這樣做。顯然，隨著我們前進，我們將在企業方面工作。

As it relates to 2023, obviously, we're not in a position to guide 2023 right now. And I guess the good news is, is that by the time we're ready, I'll have more time under my belt to have had input into that process. We hear you on the math, the reality is there's other things that we've got to look at as well in terms of what assets do we keep? What assets do we not keep? Are the new assets we would add to the portfolio? There's also the opportunity, I think, to continue to drive cost efficiencies as we go forward. So there's a lot of things that go into baking 2023 guidance and as we move through the year, that will be part of my focus.

由於它與 2023 年有關，顯然，我們現在無法指導 2023 年。我想好消息是，當我們準備好時，我將有更多的時間來參與該過程。我們在數學上聽到了你的聲音，現實是我們還必須考慮其他一些事情，比如我們保留哪些資產？我們不保留哪些資產？我們會添加到投資組合中的新資產嗎？我認為，在我們前進的過程中，還有機會繼續提高成本效率。因此，烘焙 2023 年指南中有很多內容，隨著我們這一年的推進，這將成為我關注的一部分。

Our next question is from Eric Luebchow with Wells Fargo.

我們的下一個問題來自富國銀行的 Eric Luebchow。

Jeff, I was curious on the supply chain commentary. First of all, how much of a revenue impact did you see from, I think, you said some lower nonrecurring equipment sales? And are you seeing these supply chain issues? Is that contributing to some of the larger, longer install cycles from some of your customers? Or is that largely related to some of the large complex deals you talked about recently?

傑夫，我對供應鏈評論很好奇。首先，我認為，你說一些較低的非經常性設備銷售對收入有多大影響？您是否看到這些供應鏈問題？這是否會導致某些客戶的一些更大、更長的安裝週期？或者這很大程度上與你最近談到的一些大型複雜交易有關？

And then second question maybe for Chris. You called out some of the transition costs as transitory. And I think it was the separation costs, the synergies and the transformation savings. When do you think we'll kind of get past those and we'll see those actually have a positive net impact to the current run rate of EBITDA?

然後第二個問題可能是給克里斯的。您將一些過渡成本稱為暫時性成本。我認為這是分離成本、協同效應和轉型節省。你認為我們什麼時候會超越這些，我們會看到這些實際上對當前的 EBITDA 運行率產生積極的淨影響？

Sure. On the supply chain issues, it does have an impact on our CPE sales. We don't quantify that number generally, but it's not insignificant. So we look at it pretty carefully. It does not drive EBITDA, it does not drive cash flow, but it does have a fairly significant impact on revenue in the quarter. So we'll continue to focus on it, but not worry about it from a free cash flow or EBITDA perspective.

當然。在供應鏈問題上，它確實對我們的 CPE 銷售產生了影響。我們一般不會量化這個數字，但它並非微不足道。所以我們非常仔細地看待它。它不會推動 EBITDA，也不會推動現金流，但它確實對本季度的收入產生了相當大的影響。因此，我們將繼續關注它，但不要從自由現金流或 EBITDA 的角度擔心它。

Within the service delivery, it absolutely creates bottlenecks for us, especially with customer premise equipment. If the customer wants a particular vendor's product and the vendor isn't shipping it, those are challenges that we have to deal with. It's not an insurmountable challenge. It's not something that I'm pointing to say, oh, service delivery isn't delivering. I think we're doing a great job of managing through the supply chain issues. But it is something that I want you to be aware of that we do see it, and we do face it and I hope that it's getting better. It seems to have improved a little bit over the last month or so, but we'll continue to stay focused with our vendors.

在服務交付中，它絕對會為我們製造瓶頸，尤其是在客戶端設備方面。如果客戶想要特定供應商的產品而供應商不發貨，那麼這些都是我們必須應對的挑戰。這不是一個無法克服的挑戰。這不是我要說的，哦，服務交付沒有交付。我認為我們在管理供應鏈問題方面做得很好。但我希望你知道，我們確實看到了它，我們確實面對它，我希望它會變得更好。它似乎在過去一個月左右有所改善，但我們將繼續專注於我們的供應商。

Now the last point is we have great relationships. And so I talked to our major vendors pretty regularly, and we work with them in good times and in bad to make sure that they have accurate forecasts for our services. And so during COVID, I worked with a lot of these vendors to make sure they knew what they could expect from us. And now we're working with them to make sure that we can expect from them. So we'll continue to work through the supply chain issues. It's a warning flag that I want you to hear, but I don't want you to overemphasize it in that either.

現在最後一點是我們有很好的關係。因此，我經常與我們的主要供應商交談，我們與他們一起工作，以確保他們對我們的服務有準確的預測。因此，在 COVID 期間，我與許多這些供應商合作，以確保他們知道他們可以從我們這裡得到什麼。現在我們正在與他們合作，以確保我們可以從他們那裡得到期望。因此，我們將繼續解決供應鏈問題。這是我希望你聽到的警告標誌，但我也不希望你過分強調它。

And just on the transition costs, we expect those to go on probably for 1 to 2 years. Now again, we'll recover a lot of that in other income, and you'll see that as we go forward. Transformation savings, I think we can ramp up sooner. Obviously, in the near term, we've got a lot of people working on the divestitures, but we can refocus on transformation savings next year. But I do think the other thing that will impact OpEx increases is really the growth in quantum. And frankly, I hope that continues. That's a positive reinforcement mechanism because we'll be driving the revenue that goes with that. So we'll continue to provide insight on that as we move forward, but that's how I see it unfolding.

僅就過渡成本而言，我們預計這些成本可能會持續 1 到 2 年。再說一次，我們將在其他收入中收回很多，你會在我們前進的過程中看到這一點。轉型節省，我認為我們可以更快地增加。顯然，在短期內，我們有很多人致力於資產剝離，但我們可以在明年重新關注轉型節省。但我確實認為會影響 OpEx 增長的另一件事實際上是數量的增長。坦率地說，我希望這種情況繼續下去。這是一種積極的強化機制，因為我們將推動隨之而來的收入。因此，隨著我們的前進，我們將繼續提供有關這一點的見解，但這就是我認為它展開的方式。

Our next question is Greg -- from Greg Williams with Cowen and Company.

我們的下一個問題是 Greg——來自 Cowen and Company 的 Greg Williams。

You spoke about portfolio optimization and alluded to 2023 in the way you're going to deal with the balance sheet. There's some media reports suggesting that Lumen is exploring a sale of the European assets. Just wondering if that's something that you would be considering? And can you remind us how much revenue and EBITDA those assets do generate?

您談到了投資組合優化，並以您處理資產負債表的方式提到了 2023 年。有媒體報導稱，Lumen 正在探索出售歐洲資產。只是想知道這是否是你會考慮的事情？您能否提醒我們這些資產確實產生了多少收入和 EBITDA？

And then the second question is just on the mid-market weakness, if you can elaborate a little bit. Is this really COVID related? Or is this more voice attrition? Or are they adopting lower ARPU, SD-WAN and the technology risks there? Just help us think about the trajectory going forward?

然後第二個問題只是關於中端市場的弱點，如果你能詳細說明的話。這真的與COVID有關嗎？或者這是更多的聲音損耗？還是他們採用較低的 ARPU、SD-WAN 和那裡的技術風險？只是幫助我們思考前進的軌跡？

Sure. Let me address the first question on asset sales. I never speculate on any particular assets and never comment on anything. But I'll point out that we've demonstrated and opened this to smart optimization of our assets. We've also demonstrated the discipline to get the right deal done, not just get a deal done. And so we'll continue to do that. There's no urgency for us to divest anything, but we're always interested in figuring out the best ways to generate strong returns for our shareholders.

當然。讓我談談關於資產銷售的第一個問題。我從不推測任何特定的資產，也從不評論任何事情。但我要指出，我們已經證明並打開了這一點，可以對我們的資產進行智能優化。我們還展示了完成正確交易的紀律，而不僅僅是完成交易。所以我們將繼續這樣做。我們並不急於剝離任何東西，但我們總是有興趣找出為股東帶來豐厚回報的最佳方式。

I'll also add that any acquisitions or dispositions really must meet 2 fundamental criteria. And the first is attractive valuation and the second is strategic benefit to Lumen. And so anything we do, we'll have to meet those 2 requirements. As you look at our LatAm sale and our ILEC sale in the 20 states to Apollo, both of those transactions meet the attractive valuations and providing strategic benefit to Lumen. And so that's the context in which we'll look at any type of acquisition or disposition. I'm sorry, Greg, what was the other question?

我還要補充一點，任何收購或處置確實必須滿足兩個基本標準。一是估值有吸引力，二是對流明的戰略利益。所以無論我們做什麼，我們都必須滿足這兩個要求。當您查看我們的 LatAm 出售和我們在 20 個州向 Apollo 出售的 ILEC 時，這兩項交易都符合有吸引力的估值並為 Lumen 提供了戰略利益。這就是我們將研究任何類型的收購或處置的背景。對不起，格雷格，另一個問題是什麼？

Just the mid-market, the trajectory and elaborate on the weakness?

只是中端市場，軌跡和弱點的詳細說明？

The mid-market weakness, I really think it's still just a lingering effect of COVID. I look at our products and services and our sales motion with them and our digital experience and think that it is -- so we've got all the right capabilities for the customers. They're just not yet back into the office or just now getting back into the office and starting to look at sales opportunities again. And so we'll continue to focus on that. I'm pretty confident in our ability to win in that group. We just need to make sure that we do and execute on the plan. It's a relatively small number of our overall Enterprise business. I don't have the exact percentage in my head, but it's a relatively small number.

中端市場的疲軟，我真的認為這仍然只是 COVID 的揮之不去的影響。我查看我們的產品和服務以及我們的銷售活動以及我們的數字體驗，並認為它是 - 所以我們為客戶提供了所有合適的功能。他們只是還沒有回到辦公室，或者剛剛回到辦公室並開始再次尋找銷售機會。因此，我們將繼續關注這一點。我對我們在那個小組中獲勝的能力非常有信心。我們只需要確保我們按照計劃執行並執行。這是我們整個企業業務的一小部分。我不知道確切的百分比，但這是一個相對較小的數字。

Our next question is from Michael Rollins with Citi.

我們的下一個問題來自花旗的邁克爾·羅林斯。

Just curious if you could dive a little deeper in the subject of legacy revenue. And is there a way to frame whether it's by product or by customer vertical of how investors should think about what's legacy or at risk over time? And what's strategic? And then maybe how -- when legacy converts to strategic, like what that average algorithm is to understand like longer term, the current revenue power of the company?

只是好奇您是否可以更深入地研究遺留收入的主題。有沒有辦法根據產品或客戶垂直來確定投資者應該如何考慮隨著時間的推移什麼是遺產或風險？什麼是戰略性的？然後也許如何 - 當傳統轉變為戰略時，比如平均算法要理解的長期，公司當前的收入能力？

Sure. So great question, and I'll ask Chris to answer it because that's what he spends a lot of time over the last month that he's been here. He's thinking about how do we give appropriate disclosures, better disclosure, clear disclosures on our business. And so Chris, I'll let you...

當然。這麼好的問題，我會請克里斯回答這個問題，因為這是他上個月來這里花費大量時間的原因。他正在考慮我們如何對我們的業務進行適當的披露、更好的披露、清晰的披露。所以克里斯，我會讓你...

Yes. And I wish I had more specificity for you today. That's obviously something we're going to drive to going forward. But that's really what we're trying to unpack right now, right? Which if you think about the assets in our portfolio today, what are the growers, what are the things that are critical to the portfolio, but are going to have a lower growth rate. And then what are the things that over time will go away either through just regular business declines and harvesting cash or we sell them. So that's an exercise that we're going through now. We didn't have enough time to get through that before this call, but you can expect more visibility on that going forward.

是的。我希望我今天對你有更多的特異性。這顯然是我們要推動的事情。但這確實是我們現在想要解開的內容，對吧？如果您考慮今天我們投資組合中的資產，哪些是種植者，哪些對投資組合至關重要，但增長率將較低。那麼隨著時間的推移，有哪些事情會通過常規業務下滑和收穫現金或我們出售它們而消失。這就是我們現在正在進行的練習。在這次電話會議之前，我們沒有足夠的時間來解決這個問題，但你可以期待在未來有更多的可見性。

And just another quick follow-up. So you adjusted the guidance for EBITDA. Was there a reason that the CapEx didn't get adjusted for holding on to the wireline assets for another quarter?

只是另一個快速跟進。因此，您調整了 EBITDA 的指導。是否有理由不調整資本支出以在另一個季度持有有線資產？

Yes. It's just -- the differences there are so small. We wanted to keep it simple. And that's why you saw the flow through the way you saw it presented. So it's really -- the big variable is just time and there's not going to be a significant change in CapEx because of that.

是的。只是——那裡的差異是如此之小。我們想保持簡單。這就是為什麼你通過你看到它呈現的方式看到流動。所以真的 - 最大的變量只是時間，因此資本支出不會發生重大變化。

Our next question is from Brett Feldman with Goldman Sachs.

我們的下一個問題來自高盛的 Brett Feldman。

Welcome to Chris. Two, if you don't mind. The first one is, we're now at this point where every single major wireless carrier and cable company is offering a bundle of mobile and broadband. And as you ramp your investment in your own advanced fiber broadband service, I'm curious how you think about the importance of incorporating mobile into the bundle and obviously already have Enterprise partnership with T-Mobile, and I'm curious whether it would make sense to maybe expand that?

歡迎來到克里斯。二，如果你不介意的話。第一個是，我們現在處於每個主要的無線運營商和有線電視公司都在提供移動和寬帶捆綁服務的階段。當您加大對自己的先進光纖寬帶服務的投資時，我很好奇您如何看待將移動設備整合到捆綁中的重要性，並且顯然已經與 T-Mobile 建立了企業合作夥伴關係，我很好奇它是否會感覺也許可以擴展它？

And then the second question here, some of the other large telcos, that are a bit more consumer facing like the wireless carriers, have been talking about looking at pricing as a mechanism for offsetting some inflationary cost pressures in their business. And even yesterday, AT&T announced that they would start taking price on some legacy plans. You're obviously not exposed to the wireless market, but you're exposed to literally every other telecom market in the country. And so Jeff, I'm curious how you're thinking about pricing power and whether there's an opportunity or to what extent you think you can move price higher if needed, if inflationary pressures persist?

然後是第二個問題，其他一些像無線運營商一樣面向消費者的大型電信公司一直在談論將定價作為一種機制來抵消其業務中的一些通脹成本壓力。甚至在昨天，AT&T 宣布他們將開始對一些傳統計劃定價。你顯然沒有接觸到無線市場，但你接觸到了該國幾乎所有其他電信市場。所以傑夫，我很好奇你是如何考慮定價能力的，如果通脹壓力持續存在，是否有機會，或者你認為如果需要，你可以在多大程度上提高價格？

Sure. The first one, bundling mobile and broadband. Candidly, we haven't seen that it has been all that important, if you -- and -- so we will continue to evaluate and continue to look at it. I know we're never going to go out and build -- actually, I shouldn't say never, but we're not going to go out and buy a whole bunch of spectrum and build a network ourselves. So it would be through partnerships, obviously, that we would consider doing it. But we haven't seen bundle -- we didn't see the bundle between Prism TV payoff and subscriber growth. We think our broadband capability stands on its own.

當然。第一個，捆綁移動和寬帶。坦率地說，我們還沒有看到它有那麼重要，如果你 - 並且 - 所以我們將繼續評估並繼續關注它。我知道我們永遠不會出去建立 - 實際上，我不應該說永遠，但我們不會出去購買一大堆頻譜並自己建立網絡。因此，很明顯，我們會考慮通過合作夥伴關係來做這件事。但我們還沒有看到捆綁——我們沒有看到 Prism TV 收益和用戶增長之間的捆綁。我們認為我們的寬帶能力是獨立的。

I mean, we just announced that we're going to do multi-gigabit services. We think that's an incredible capability. We think our all-digital experience, provides a customer experience that's unmatched in the market, layering WiFi and home WiFi and layering security on top of those types of capabilities. We think our product is second to none and stands on its own. So I don't think that we'll really not anytime soon look at mobile bundling. But I don't say never. We'll always keep it open mind to it if we thought that it added value.

我的意思是，我們剛剛宣布我們將提供多千兆位服務。我們認為這是一種不可思議的能力。我們認為我們的全數字體驗提供了市場上無與倫比的客戶體驗，將 WiFi 和家庭 WiFi 分層，並在這些類型的功能之上分層安全。我們認為我們的產品是首屈一指的並且獨立存在。所以我不認為我們真的不會很快關注移動捆綁。但我不是說永遠不會。如果我們認為它增加了價值，我們將始終保持開放的態度。

From a pricing perspective, we look at re-rates pretty regularly and see if there are opportunities to do re-rates. And so I'm not going to get into our specific strategy on what customers, what type of customers, what types of products. But when we look at the market and we feel that our prices are not where they should be, we do re-rates. It's historically not been a huge number, but it's something that over the past couple of years -- for 3 or 4 years that we've paid a lot of attention to and we'll continue to do so.

從定價的角度來看，我們會定期查看重新定價，看看是否有機會進行重新定價。所以我不打算討論我們關於什麼客戶、什麼類型的客戶、什麼類型的產品的具體策略。但是，當我們觀察市場時，我們覺得我們的價格不在應有的水平，我們會重新定價。從歷史上看，這並不是一個巨大的數字，但在過去的幾年裡，我們已經非常關注 3 或 4 年，我們將繼續這樣做。

Our next question is from Phil Cusick with JPMorgan.

我們的下一個問題來自摩根大通的 Phil Cusick。

A couple of follow-ups and maybe a real question. First, can you break out for us what the revenue and EBITDA were for the planned asset sales this quarter? And then did last quarter's outlook anticipate that $59 million in noncash CAF benefit that you got this quarter? And then the third follow-up, talk again on the mass market growth in the second half of '23, was that on a year-over-year or quarter-to-quarter basis that growth number? Finally, a real question, have you seen any shift in copper broadband churn in markets where fixed wireless has launched versus markets where it hasn't?

一些後續行動，也許是一個真正的問題。首先，您能告訴我們本季度計劃的資產銷售的收入和 EBITDA 是多少嗎？那麼上一季度的前景是否預計您在本季度獲得了 5900 萬美元的非現金 CAF 收益？然後是第三次跟進，再次談到 23 年下半年的大眾市場增長，這個增長數字是同比還是環比？最後，一個真正的問題是，您是否看到在固定無線網絡已經推出的市場與尚未推出的市場中銅寬帶流失的任何變化？

Yes. So I'll try and take a couple of those and leave whichever ones I've forgotten to Chris. I don't know the number on asset sales, what the revenue is. So Chris, you can have...

是的。所以我會試著拿幾個，把我忘記的都留給克里斯。我不知道資產銷售的數字，收入是多少。所以克里斯，你可以...

Yes. Yes. So -- for the ILEC sale, the revenue number for the year was $2.5 billion.

是的。是的。所以 - 對於 ILEC 的銷售，當年的收入數字是 25 億美元。

For 2020.

2020 年。

Sorry, for 2020 it was $2.5 billion. And for Latin America was $800 million.

抱歉，2020 年是 25 億美元。對拉丁美洲來說是 8 億美元。

Okay. But nothing for the quarter?

好的。但是本季度什麼都沒有？

Yes. The second question you had was on the CAF II release and was it contemplated in the guidance and what we said last quarter. And the answer is the CAF II -- the opportunity for CAF II release has always been contemplated in the guidance. I won't give details on how much, when, or any of that. But yes, it's contemplated in our guidance. It's a little bit of a fuzzy number moving forward because we don't know what the audits will result in. And until you go through that process, you don't know whether there is a release or how much of a release or if there's some sort of make it has to go.

是的。您提出的第二個問題是關於 CAF II 版本的，它是否在指導和我們上個季度所說的內容中有所考慮。答案就是 CAF II——指南中一直考慮發布 CAF II 的機會。我不會詳細說明多少、何時或其中的任何一個。但是，是的，它在我們的指導中有所考慮。這是一個有點模糊的數字，因為我們不知道審計會產生什麼結果。在你完成這個過程之前，你不知道是否有發布或有多少發布，或者是否有某種方式讓它必須去。

And then on top return due to fixed wireless, we're not seeing it, but, I'm sure, there's a little bit, but we're not seeing it. If you think about fixed wireless moving forward and the broadband capabilities of Quantum, I look at it and think we have exactly the right solutions for fixed wireless. And we use fixed wireless and our Enterprise business is a campus area in networking technology. There are always multiple technologies to deliver similar services. And so we use it in our campus area networking solutions to provide mobility within a campus.

然後，由於固定無線，我們沒有看到它，但是，我敢肯定，有一點，但我們沒有看到它。如果您考慮固定無線的發展和 Quantum 的寬帶功能，我會認為我們擁有完全正確的固定無線解決方案。我們使用固定無線，我們的企業業務是網絡技術的園區。總是有多種技術可以提供類似的服務。因此，我們在校園區域網絡解決方案中使用它來提供校園內的移動性。

But as soon as you wouldn't have traffic that wants to leave the edge of the campus, it moves to fiber. And we think that is ultimately the answer for all communications, whether it's leaving the edge of the campus for fixed wireless-type communications, or is leaving the edge of the campus or leaving the edge to the home, it wants to leave best on fiber. And so we look at it and think there's certainly some application, probably more applicable in rural environments than in dense urban market clusters the Quantum Fiber is targeting. But I don't know that we see any particular churn as a result of it.

但是，一旦您沒有想要離開校園邊緣的流量，它就會轉向光纖。我們認為這最終是所有通信的答案，無論是離開校園邊緣進行固定無線類型的通信，還是離開校園邊緣或離開邊緣到家庭，它都希望在光纖上留下最好的.所以我們看著它並認為肯定有一些應用，可能更適用於農村環境，而不是量子光纖所針對的密集城市市場集群。但我不知道我們會因此而看到任何特定的流失。

Okay. And then on the mass market growth, just to clarify, was that year-over-year or quarter-to-quarter revenue growth, I think it was?

好的。然後關於大眾市場的增長，只是為了澄清一下，我認為是同比還是環比收入增長？

The -- sorry, which number were you referring to I want to make sure?

- 抱歉，您指的是哪個號碼，我想確定一下？

You had said you expected -- was it -- I think you said you expected mass market revenue growth in the second half of '23?

你曾說過你預期 - 是嗎 - 我想你說過你預期 23 年下半年大眾市場收入增長？

Yes. That's right. And so that's year-over-year.

是的。這是正確的。所以這是年復一年。

That's year-over-year. So you expect it to start growing sequentially more quickly than that?

那是一年比一年。所以你預計它會比這更快地開始按順序增長嗎？

That's tougher to call, but I would expect that at that point in time, you would see year-over-year growth and sequential growth. I wouldn't say cumulatively, it would be growth at that point. So we got to be careful with that. But the key message is that we see a light at the end of the tunnel at an inflection point where that segment starts to grow again in the second half of next year.

這很難說，但我預計到那個時候，你會看到同比增長和連續增長。我不會說累積起來，那將是增長。所以我們必須小心。但關鍵信息是，我們在隧道盡頭看到了一個轉折點，該部分將在明年下半年再次開始增長。

Our next question is from Nick Del Deo with MoffettNathanson.

我們的下一個問題來自 Nick Del Deo 和 MoffettNathanson。

First, a high level one for Chris. What if Jeff and the Board charged with accomplishing in the role? And can you describe high-level philosophies that you bring with respect to value creation, financial KPIs you focus on and so on? And then second, I think you guys disclosed $400 million to $500 million annual maintenance CapEx. I guess how are you defining that since everyone seems to do it a little bit differently? And how do you think about a more holistic maintenance CapEx number when you kind of bake in the cost of churn of placement?

首先，對克里斯來說是一個高級別的。如果傑夫和董事會負責完成這個角色怎麼辦？您能否描述一下您在價值創造、您關注的財務 KPI 等方面帶來的高層次理念？其次，我認為你們披露了 4 億到 5 億美元的年度維護資本支出。我想你是如何定義的，因為每個人的做法似乎都有點不同？當您考慮安置流失的成本時，您如何考慮更全面的維護資本支出數字？

So Nick, I think I should answer the question about what am I charging him with, but I'll let Chris answer.

所以尼克，我想我應該回答關於我指控他什麼的問題，但我會讓克里斯回答。

Thanks, Nick. I mean, really, the conversations that I have with Jeff and the Board when I was considering this opportunity, we're really around helping Lumen transition to growth. And if you look at my experience with Arrow, Arrow was in a very similar situation when I joined and went through a big strategic shift and focused to drive growth. And I think that's something I bring to Lumen. And quite frankly, the reason I came is I saw all the hardworking people and initiatives inside the building. And I think it's a tremendous opportunity. So that's job #1.

謝謝，尼克。我的意思是，真的，當我考慮這個機會時，我與 Jeff 和董事會的對話，我們真的是在幫助 Lumen 過渡到增長。如果你看看我在 Arrow 的經歷，當我加入並經歷重大戰略轉變並專注於推動增長時，Arrow 的情況非常相似。我認為這就是我帶給 Lumen 的東西。坦率地說，我來的原因是我看到了大樓裡所有辛勤工作的人和倡議。我認為這是一個巨大的機會。這就是工作#1。

But moving through these windows is obviously tricky. And some of the questions today obviously get to that. So maximizing EBITDA, while we're navigating that transformation, I think, is critical, and that's going to be a close second to helping drive growth. I'd say that on that journey, obviously, I'm going to learn more as I get closer to the business, but one thing near term that I think is critically important is giving more transparency to the investment community around what's under the covers. And I think that's a real opportunity for us as well, and I've talked about that earlier.

但是通過這些窗口顯然很棘手。今天的一些問題顯然涉及到這一點。因此，我認為，在我們進行轉型的同時，最大限度地提高 EBITDA 至關重要，這將是幫助推動增長的關鍵。我想說的是，在這段旅程中，很明顯，隨著我越來越接近業務，我會學到更多，但我認為近期至關重要的一件事是讓投資界更加透明地了解幕後的內容.我認為這對我們來說也是一個真正的機會，我之前已經談到過。

I'll touch on the CapEx. When we say $400 million to $500 million, that's keep the lights on CapEx. That's what we need to do to keep the business running. Where that goes as we move forward? That's a little trickier, but the reality is when you look at a lot of the capital that's going into the ground now, those are very long-lived assets. And so I don't expect a ton of maintenance associated with that, certainly in the near term. Longer term, I've got to educate myself a little more before I can answer that.

我會談談資本支出。當我們說 4 億到 5 億美元時，這就是資本支出。這就是我們需要做的以保持業務運行。當我們前進時，它會去哪裡？這有點棘手，但現實情況是，當你看到現在大量投入地下的資本時，這些都是非常長期的資產。因此，我預計不會有大量與此相關的維護，當然是在短期內。從長遠來看，在我回答這個問題之前，我必須對自己進行更多的教育。

And then really, when you think about some of the things that Jeff talked about on the enterprise side, a number of those initiatives become less CapEx intensive, right, when you're talking about complex solutions. There is CapEx involved, but that -- the phase of that looks different, perhaps in some of the more historical motions. So that's how I'd address that.

然後真的，當你考慮 Jeff 在企業方面談到的一些事情時，當你談論複雜的解決方案時，其中一些舉措變得不那麼資本支出密集。涉及資本支出，但那個階段看起來不同，也許在一些更具歷史意義的運動中。這就是我要解決的問題。

Our next question is from James Ratcliffe with Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 James Ratcliffe。

Two, if I could. First of all, Chris, just to clarify in the guidance changes, there is no organic change in EBITDA. It's just adding another quarter of the U.S. telco EBITDA and just rounding on CapEx? And secondly, Jeff, can you give us a little color around what you think you need to do better in mid-market? You highlighted that a scenario you're not satisfied. But now what's the blocking and tackling there?

二，如果可以的話。首先，克里斯，只是為了澄清指導變化，EBITDA 沒有有機變化。它只是增加了美國電信公司 EBITDA 的四分之一併且只是在資本支出上四捨五入？其次，傑夫，您能否就您認為需要在中端市場做得更好的地方給我們一點顏色？你強調了一個你不滿意的場景。但是現在那裡的阻礙和解決是什麼？

Yes, you're correct. On the guidance, it's just the just the timing shift and that flows through to free cash flow as well.

是的，你是對的。在指導上，這只是時間的轉變，它也流向了自由現金流。

And what do we need to do better in mid-market, I'll give you a short-term answer and a long-term answer. The short-term answer is we need to get people back in the office. We need to get them looking new technology solutions for their businesses. And that's obviously beyond our control to some extent, but we need to keep working with those customers as they come back from the past 2 years. Longer term, we need to keep investing in all-digital experience. Last week -- and I guess this is near term, too.

而我們在中端市場需要做的更好的地方，我給你一個短期的答案和一個長期的答案。短期的答案是我們需要讓人們回到辦公室。我們需要讓他們為他們的業務尋找新的技術解決方案。這在某種程度上顯然超出了我們的控制範圍，但我們需要繼續與這些客戶合作，因為他們從過去 2 年回來。從長遠來看，我們需要繼續投資於全數字體驗。上週——我想這也是近期的。

But last week, we launched the Lumen Marketplace. And the Lumen marketplace is an ideal for our mid-market customers to go in and explore and learn about our capabilities, to configure things that they want and to place orders that we can then turn up very quickly because we've been standardizing our building platform in which those customers exist. And so we need the customers to get back in the office and start buying but we also need to make sure that we're driving utilization of the capabilities that we've been building and have recently launched for those customers. So we're excited about that business. And if you look at our security business, our DDoS mitigation, our excellent broadband, SASE, SD-WAN, all of those capabilities, we think we have the right answers. We just need to continue to execute on the plan.

但上週，我們推出了 Lumen Marketplace。 Lumen 市場是我們的中端市場客戶進入並探索和了解我們的能力、配置他們想要的東西並下訂單的理想場所，因為我們一直在標準化我們的建築這些客戶所在的平台。因此，我們需要客戶回到辦公室並開始購買，但我們還需要確保我們正在推動利用我們一直在構建並最近為這些客戶推出的功能。所以我們對這項業務感到興奮。如果您查看我們的安全業務、我們的 DDoS 緩解、我們出色的寬帶、SASE、SD-WAN 以及所有這些功能，我們認為我們有正確的答案。我們只需要繼續執行計劃。

Our next question is from Walt Piecyk with Lightshed Partners.

我們的下一個問題來自 Lightshed Partners 的 Walt Piecyk。

Sorry, I have a bit of a small specific question. You talked in February about 1 million new fiber homes passed for 2022. Your pace really for the past 4 quarters only is very small. Is this impacted by supply chain? Is there a specific ramp that's going to occur? And then when you talked about 2023, I think you said maybe more than that 1.5 million in homes passed. If you can get momentum in these fiber builds, does that carry into the first half of '23? Can you just talk about that a little bit?

對不起，我有一個小的具體問題。您在 2 月份談到 2022 年將有 100 萬個新光纖家庭通過。您在過去 4 個季度的步伐確實非常小。這受供應鏈影響嗎？是否會出現特定的斜坡？然後當你談到 2023 年時，我想你說的可能超過了 150 萬戶。如果你能在這些纖維構建中獲得動力，那會延續到 23 年上半年嗎？你能談談這個嗎？

Sure. First of all, everything affect our supply chain that I don't point to that as any major obstacle in our fiber ramps for this year at this point. So I don't want to discount it entirely, but again I don't want to over highlight it either. If you look at our process, we have shifted from micro targeting to a more market-based targeting. That means more engineering upfront, longer permitting times. And all of the things that we have contemplated in our build schedule but make it nonlinear.

當然。首先，一切都會影響我們的供應鏈，我並不認為這是我們今年光纖增長的任何主要障礙。所以我不想完全打折，但我也不想過分強調它。如果您查看我們的流程，我們已經從微觀定位轉變為更加基於市場的定位。這意味著更多的前期工程，更長的許可時間。以及我們在構建計劃中考慮的所有事情，但使其非線性。

Now I'm going to see the same number in the first quarter that you see the second quarter. It's not always as efficient as you would want it to be, and you certainly can't divide 1 million by 4 and think that, that's the right number. So I talked about capital in my remarks. And I think that we are on track for what we're wanting to accomplish in 2022 from a fiber build perfective, and we should be continuing to ramp throughout the year.

現在，我將在第一季度看到與第二季度相同的數字。它並不總是像您希望的那樣有效，而且您當然不能將 100 萬除以 4 並認為這是正確的數字。所以我在發言中談到了資本。而且我認為我們正在朝著 2022 年希望通過完美的纖維構建實現的目標走上正軌，我們應該在全年繼續增長。

And then on Slide 11, you referenced hitting, think if I'm reading this correct, 22% penetration of the 12-month mark for the '22 -- 2020 vintage? When you think -- I mean, obviously, there are small builds in '21. Are you seeing similar performance as you continue to build in terms of a 1-year target of 20%-plus penetration?

然後在幻燈片 11 上，您提到了擊球，想一想我的理解是否正確，22 至 2020 年份的 12 個月大關的滲透率為 22%？當您想到時-我的意思是，顯然，21 年有一些小型構建。您是否看到了類似的業績，因為您繼續按照 20% 以上的滲透率的 1 年目標進行建設？

We've always been very excited about the success that Quantum Fiber brings to the market. We've had a great digital experience. We handle the sales and turn it up and all that through the digital experience. So we think that we -- and we have a great symmetrical high-speed product. And so yes, we're very pleased with what we see. We haven't reported specifically what we're seeing in 2021, but we think that 1-year mark is a good place to look at it. And so that's why we talked about 2020.

我們一直對 Quantum Fiber 為市場帶來的成功感到非常興奮。我們有很棒的數字體驗。我們通過數字體驗處理銷售並提高銷售量。所以我們認為我們 - 我們有一個很棒的對稱高速產品。所以是的，我們對我們所看到的非常滿意。我們還沒有具體報告我們在 2021 年看到的情況，但我們認為 1 年大關是一個很好的觀察點。這就是我們談論 2020 年的原因。

Thank you, everybody. Look, in closing, I just want to say that Lumen is a company undergoing rapid and exciting change in 2022. We've been on a transformation journey for the past several years, and it's really coming to a focal point in 2022.

謝謝大家。最後，我只想說，Lumen 是一家在 2022 年正在經歷快速而激動人心的變革的公司。過去幾年我們一直在進行轉型之旅，並在 2022 年真正成為一個焦點。

We see a broad opportunity set across our business in mass market units as we streamline and positioned them for revenue growth. In addition, I look forward to Chris' new leadership of our finance organization and the powerful skill set he brings to the team. So Chris, I'd like to add my official welcome in front of everybody. With that, we will end the call. Thank you all for joining. As always, thank you for your interest in Lumen.

我們在大眾市場部門的業務中看到了廣泛的機會，因為我們精簡併定位它們以實現收入增長。此外，我期待 Chris 對我們財務部門的新領導以及他為團隊帶來的強大技能。克里斯，我想在大家面前表達我的正式歡迎。這樣，我們將結束通話。謝謝大家的加入。一如既往，感謝您對 Lumen 的關注。

And we would like to thank everyone for your participation and for using the Lumen conferencing service today. This does conclude the conference call. We ask that you please disconnect your lines, and have a great day, everyone.

我們要感謝大家今天的參與和使用 Lumen 會議服務。這確實結束了電話會議。我們要求您斷開線路，祝大家有美好的一天。