US-based digital trunking firm NII Holdings, which provides wireless services under the Nextel brand in Brazil, Mexico, Argentina, Peru and Chile, has announced its consolidated financial results for the fourth quarter and full year 2011. The company said it generated consolidated operating revenues of USD6.719 billion in the year ended 31 December 2011, up 20% from USD5.601 billion the previous year, while Q4 2011 revenue inched up 5% to USD1.595 billion from USD1.520 billion in the year-ago quarter. Consolidated operating income before depreciation and amortisation (OIBDA) for 2011 rose 9% year-on-year to USD1.562 billion, but fell from USD378.6 million in the fourth quarter of 2010 to USD276.6 million in 4Q11. NII Holdings reported a net loss of USD8.7 billion in Q4 2011, compared to net profit of USD98.6 million in the year-ago quarter, while full year net income dropped from USD341.0 million in 2010 to USD198.8 million twelve months later. The firm said its results were affected by an increase in costs relating to the deployment of its new W-CDMA-based networks, higher marketing costs linked to the launch of its new brand, decreases in the values of local currencies compared to the US dollar and higher costs associated with customer retention driven by more intense competition in some markets. Capital expenditure totalled USD1.45 billion in 2011.
NII Holdings added 1.684 million net subscribers during 2011, bringing its year-end total customer base to 10.711 million, an increase of 19% year-on-year. It plans to add a further 1.4 million subscribers during the course of this year and aims for consolidated operating revenues of approximately USD7.1 billion and OIBDA of approximately USD1.4 billion. ‘2012 will be a transformative year for our business as we invest in key initiatives that will enable NII to drive more profitable growth in the future,’ noted NII Holdings’ CEO Steve Dussek, adding: ‘These initiatives include launching 3G services across most of our markets, delivering our new 3G push to talk services on a broader scale, increasing our marketing efforts to create additional distribution presence and enhance our brand, and creating a global platform of back office and IT systems to support our growth initiatives. We believe that these investments will prepare our business for the future and will help us create value as we target additional customer segments and provide innovative broadband wireless services to our high value customer base.’