Business Analysis of Level 3 Communications

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Level 3 Communications

LEVEL 3 COMMUNICATIONS

Business Overview

Level 3 Communications, Inc., together with its subsidiaries, operates as a facilities-based provider of a range of integrated communications services. It operates through North America, EMEA, and Latin America segments. The company offers Internet protocol (IP) and data services comprising Internet services, virtual private network, content delivery network, media delivery, Vyvx broadcast, managed, Ethernet, cloud and IT, and cloud connect solutions, as well as Communications as a Service. It also provides transport and fiber services comprising wavelengths, private lines, transoceanic services, and dark fiber, as well as related professional services; local and enterprise voice services, including Voice over Internet Protocol services and traditional circuit-switch based services; collaboration services, such as audio, Web, and video collaboration services; colocation and data center services comprising cloud, hosting, and application management solutions; and security services for mobile users or remote offices, governance, risk management, and compliance. In addition, the company offers wholesale voice services, including voice termination and toll free services. It primarily serves various types of customers, such as enterprises, content, government, and wholesale. Level 3 Communications, Inc. was founded in 1884 and is headquartered in Broomfield, Colorado.

Level 3 Communications

Level 3 Communications


R&P Rank: 340
Sector: Telecommunications
Industry:Telecom Services
H.Q Location:Colorado
Website: www.level3.com
Company Address:
1025 ELDORADO BOULEVARD, BLDG 2000, BROOMFIELD CO 80021
Ph:720-888-1000

Business Analysis of Level 3 Communications

The Telecommunications Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Level 3 Communications compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Level 3 Communications to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Level 3 Communications with an interactive chart.

  1. Revenue Growth: Level 3 Communications reported a revenue growth of -0.7% year-on-year during 2016. Telecom Services Industry grew at 8.6% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Level 3 Communications spent 33.4% of its total revenues on COGS. Telecom Services industry average (COGS share of revenue) in the same period was 37.8%
  3. R&D share of Revenues: Level 3 Communications R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Level 3 Communications spent 33.7% of its total revenues on Sales, Marketing, and General Administration (SG&A). Telecom Services industry average SG&A spending in the same period was 26.6%
  5. Inventory share of Revenues: Level 3 Communications Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, Level 3 Communications invested 8.6% of its total revenues on Accounts Payable (A/P) Telecom Services industry average Accounts Payable investment in the same period was 15.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Level 3 Communications invested 8.7% of its total revenues on Accounts Receivable (A/R). Telecom Services industry average Accounts Receivable investment in the same period was 11.4%
  8. PP&E share of Revenues: As a percentage of revenue, Level 3 Communications invested 124.1% of its total revenues on Property, Plants, and Equipments (PP&E). Telecom Services industry average PPE investment in the same period was 79.2%
  9. Intangibles share of Revenues: As a percentage of revenue, Level 3 Communications invested 105.8% of its total revenues on Intangibles. Telecom Services industry average Intangibles investment in the same period was 116.1%
  10. Net Margins: Level 3 Communications Net Margins in the year 2016 were 8.3%. Telecom Services industry average Net Margins in the same period were 6.9%

Sector and Industry Association of Level 3 Communications

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Level 3 Communications is associated with Telecommunications Sector and Telecom Services Industry.

Telecommunications sector is comprised of the following industries: Telecom Services; Communication Equipment. The definitions for each of the industries is as follows:

  • Telecom Services industry includes providers of fixed-line and mobile telephone services.
  • Communication Equipment industry includes providers of communication equipment to the telecom service providers. It also includes companies that own, operate, and lease mobile site towers to multiple wireless services providers.

Industry Ranking of Level 3 Communications

With $8.2 billion revenues, Level 3 Communications ranked number 10 of all the companies in the US Telecom Services industry. There were a total of 36 public companies in the US Telecom Services industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Telecom Services industry by revenues during 2016 were:

  1. AT&T ($163.8 billion)
  2. Verizon ($126 billion)
  3. T-Mobile US ($37.2 billion)
  4. Sprint ($32.2 billion)
  5. Charter Communications ($29 billion)
  6. Liberty Global ($20 billion)
  7. CenturyLink ($17.5 billion)
  8. Dish Network ($15.1 billion)
  9. Frontier Communications ($8.9 billion)
  10. Level 3 Communications ($8.2 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Level 3 Communicationsand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of level-3-communications

CenturyLink (CTL) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

CenturyLink, Inc with $17 billion revenues in the year 2016 was the number 7 Telecom Services company. Read this report to know the top competitors of CenturyLink and identify growth and cost optimization opportunities of CenturyLink

Dish Network (DISH) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Dish Network Corp with $15 billion revenues in the year 2016 was the number 8 Telecom Services company. Read this report to know the top competitors of Dish Network and identify growth and cost optimization opportunities of Dish Network

Frontier Communications (FTR) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Frontier Communications Corp with $9 billion revenues in the year 2016 was the number 9 Telecom Services company. Read this report to know the top competitors of Frontier Communications and identify growth and cost optimization opportunities of Frontier Communications

Windstream Holdings (WIN) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Windstream Holdings, Inc. with $5 billion revenues in the year 2016 was the number 11 Telecom Services company. Read this report to know the top competitors of Windstream Holdings and identify growth and cost optimization opportunities of Windstream Holdings

Telephone & Data Systems (TDS) Business Analysis – Analyze Historical Performance,...

Telephone & Data Systems Inc with $5 billion revenues in the year 2016 was the number 12 Telecom Services company. Read this report to know the top competitors of Telephone & Data Systems and identify growth and cost optimization opportunities of Telephone & Data Systems

United States Cellular (USM) Business Analysis – Analyze Historical Performance, Strategic...

United States Cellular Corp with $4 billion revenues in the year 2016 was the number 13 Telecom Services company. Read this report to know the top competitors of United States Cellular and identify growth and cost optimization opportunities of United States Cellular

Revenues Analysis

Level 3 Communications (LVLT) Revenues And Revenue Growth From 2012 To...

This report provides the last five years revenues and revenue growth of Level 3 Communications Inc (LVLT) from 2012 to 2016. Level 3 Communications generated a total of $8.2 billion revenues during 2016. Level 3 Communications reported a revenue growth of -0.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Level 3 Communications (LVLT) Revenues And Revenue Growth From 2002 To...

This report provides the last fifteen years revenues and revenue growth of Level 3 Communications Inc (LVLT) from 2002 to 2016. Level 3 Communications generated a total of $8.2 billion revenues during 2016. Level 3 Communications reported a revenue growth of -0.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Level 3 Communications (LVLT) Revenue Growth Comparison With Industry Growth From...

This report provides a comparison of Level 3 Communications Inc (LVLT) revenue growth with Telecom Services industry growth during the last five years from 2012 to 2016. Level 3 Communications reported a revenue growth of -0.7% year-over-year during 2016. The Telecom Services industry growth was 8.6% year-over-year during 2016. Level 3 Communications growth was slower than the industry during 2016.

Profit Analysis

Level 3 Communications (LVLT) Net Profit And Net Margin From 2014...

This report provides the last three years net profit and net margin of Level 3 Communications Inc (LVLT) from 2014 to 2016. Level 3 Communications reported a total net income of $677 million during 2016. Level 3 Communications generated a total of $8.2 billion revenues during 2016. Level 3 Communications net profit margin was 8.3% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.