CenturyLink, Inc. (NYSE:CTL) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 05:00 pm ET


CenturyLink, Inc. (NYSE:CTL) Q3 2019 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the CenturyLink's Third Quarter 2019 Earnings Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] And as a reminder, this conference is being recorded Wednesday, November 6, 2019.

It is now my pleasure to turn our conference over to Valerie Finberg, Vice President of Investor Relations. Please go ahead.

Valerie Finberg

Thank you, Jan. Good afternoon, everyone and thank you for joining us for the CenturyLink Third Quarter 2019 Earnings Call. With us on the call today are Jeff Storey, President and Chief Executive Officer; and Neel Dev, Executive Vice President and Chief Financial Officer.

Before we get started, I need to call your attention to our Safe Harbor statement on Slide 2 of our 3Q 2019 presentation which notes that this conference call may include forward-looking statements subject to certain risks and uncertainties.

In addition, we will refer to certain non-GAAP financial measures, which are reconciled to the most comparable GAAP measures. Those reconciliations can be found in our earnings press release or supplemental schedules.

Additionally, please note that certain metrics discussed on the call today exclude transformation costs and other special items as noted in our earnings materials.

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

Jeff Storey

Thanks, Valerie, and thank you everyone for joining us. On today's call, I'll give you an update on the state of the business, Neel will provide an overview of the quarter's financial results and then we'll go into your questions.

During the quarter, we continued executing on our strategy around four key areas, investing in growth through product and network expansions, delivering an enhanced customer experience across our business, transforming the operations of our company to improve efficiency and employee experience and delevering to further strengthen our balance sheet.

Our expanding adjusted EBITDA margin and year-over-year revenue growth in IGAM, Enterprise and consumer broadband demonstrate these efforts are making a difference. Our focus on providing innovative networking solutions continues to resonate with our large business customers for both IGAM and Enterprise. In addition to the year-over-year revenue growth, we followed strong sales in the second quarter with higher sales this quarter. Included within the Enterprise segment results is our federal sector, we are seeing early wins under the federal EIS contract. We believe we are well positioned to grow our federal relationship under this new contract vehicle.

We're seeing mixed results in our SMB segment. The biggest challenge is offsetting pressures from legacy services such as TDM voice. So, by tailoring product capabilities, specifically for this customer segment, products like unified communications as a service, network security and SD-WAN will bring much needed solutions to the market for SMB customers.

We believe we operate one of the world's most extensive and capable fiber networks for business in wholesale customers. We continue to focus investments on improving that advantage by expanding our network reach to new buildings. During the quarter, we added approximately 4,900 new fiber-fed buildings, bringing the