Lumen consolidates LatAm position ahead of Stonepeak deal

US-based Lumen International improved its position in the Latin American market in the first quarter and eyes further growth, even after a deal with Stonepeak Partners goes through.

“We are confident that it can close as soon as July 1,” Lumen CEO Jeff Storey told an investors call regarding the sale of the regional operations.

Although most of the figures are consolidated with other operations, the Q1 report said Latin America generated pre-tax earnings of US$83mn, compared to US$28mn in the year-ago period. Liabilities amounted to US$464mn.

Last year, Lumen registered a US$214mn pre-tax profit in the region, compared to US$160mn in 2020 and US$30mn in 2019.

The Latin American operation currently includes assets worth US$2.42bn, compared to US$2.23bn at the end of December 2021. Of this total, US$1.71bn corresponds to plants and equipment and US$58mn to cash, among others.

Last year, the company announced the sale of its Latin American subsidiary to Stonepeak Partners for US$2.7bn, with the expectation that Stonepeak will inject capital and facilitate further growth.

Lumen implemented an investment plan in 2021, which it will follow through 2022.

Leonardo Barbero, Lumen senior vice president of products and access management in Latin America, told BNamericas recently that the company plans to expand datacenters, long-haul networks, metropolitan networks, content delivery networks and submarine cables.