NII swings to net loss, adds 152,000 subs

3 May 2013

US-based operator NII Holdings, which provides wireless services under the Nextel brand in a number of Latin American markets, has reported consolidated operating revenues of USD1.413 billion for the first quarter of 2013, down 13% from USD1.633 billion in the year-ago period. Service and other revenues accounted for USD1.359 billion of the total, compared to USD1.543 billion in the first three months of 2012. Adjusted operating income before depreciation and amortisation (OIBDA), which excludes the impact of non-cash asset impairment and restructuring charges, decreased from USD354.9 million in Q1 2012 to USD230.0 million twelve months later. The 35% decline in OIBDA was primarily driven by incremental expenses related to the company’s deployment of its planned 3G next generation networks, lower average revenue per user (ARPU) on a local currency basis and weaker average foreign currency exchange rates. NII reported a net loss of USD207.5 million for the three-month period, compared to a net profit of USD13.6 million in the first quarter of 2012.

NII added 151,600 net subscribers in the three-month period, bringing its total customer base to 11.513 million at 31 March 2013, an increase of 4.9% year-on-year. ‘During the quarter, we took actions to execute against our key priorities, and we are tracking well on our goals for the year,’ said Steve Shindler, NII Holdings’ chairman and CEO, adding: ‘We continue to focus on completing our next generation networks in Mexico and Brazil, improving our operational performance and realigning our business operations to provide the best return on investment. We have taken steps to achieve these goals, including adding more discipline to our processes and improving our focus on execution, which has positively impacted our network deployments and operational performance. Our recently announced sale of Nextel Peru to Entel is one step in this process to realign our business.’

United States, NII Holdings