(Reuters) – Lumen Applied sciences reported an enormous quarterly internet lack of $8.74 billion on Tuesday, hit by an impairment cost of almost $9 billion within the second quarter.

Shares of the Monroe, Louisiana, firm, which has misplaced greater than 61% of its worth this yr, fell greater than 8% in post-bell commerce.

The corporate, whose second-quarter loss was greater than 4 instances its market worth of $2 billion, was down sharply from a revenue of $344 million a yr earlier.

Lumen stated it posted a non-cash impairment cost of $8.8 billion within the first quarter, as a result of continued decline in its share value and the variance in market valuation within the April-June interval.

The telecommunications service firm is affected by continued weak spot together with enormous money owed, whereas the decline in conventional web providers has harm its increased progress.

The corporate stated its long-term debt on the finish of the second quarter was $19.9 billion, down from $20.42 billion on the finish of final yr.

Lumen goes by a tedious digital transformation course of because it makes an attempt to digitally navigate its operations in a aggressive financial system already hit by inflation.

It nonetheless has an extended approach to go to see passable profitability because it faces stiff competitors from the wi-fi provider.

Lumen additionally closed its non-value-adding enterprise, a transfer that whereas constructive for its long-term progress, impacts its near-term outcomes.

In response to Refinitiv knowledge, income within the second quarter was $3.66 billion, beating analysts’ common estimate of $3.67 billion.

(Reporting by Yamini Kalia in Bengaluru)