NII Holdings posts 50% rise in profits in Q2

27 Jul 2007

US digital trunking holding company NII Holdings says its net profits climbed 50% in the period April-June to USD84 million, up from USD56 million in 2Q2006. NII, which offers services under the Nextel brand, said revenues were up 41% year-on-year at USD786 million, from USD556 million previously. OIBDA also rose 33% from USD155 million to USD207 million on the back of strong subscriber gains and higher revenues. The company ended June with 4.06 million push-to-talk (PTT) customers, up 39% from 2.92 million at end-June 2006, thanks to the addition of 331,000 net new users in the second quarter at its operations in Mexico, Brazil, Argentina, Peru and Chile. In Mexico, NII’s unit reported revenues of USD433 million (+38% from USD313 million in 2Q2006), while subscriber numbers climbed 42% to 1.85 million. The Brazilian subsidiary posted revenues of USD201 million in the period under review, up 59% y-o-y, as its subscriber base climbed 42% from 757,000 to 1.08 million. The company’s Argentina operations posted revenues of USD106 million in the quarter and ended June with 726,000 subscribers. Its Peruvian business had 399,000 subscribers and revenues of USD45.6 million. Figures for Chile are as yet unavailable. NII only launched operations there in December 2006 after winning a protracted court battle with local mobile operators, which had blocked its attempts to introduce its PTT business model.