NII’s Q1 net loss widens as revenue drops 27%

13 May 2014

US-based operator NII Holdings, which provides wireless services under the brand Nextel in Brazil, Mexico, Argentina and Chile, has reported consolidated operating revenues of USD970.2 million for the first quarter of 2014, a decrease of 27.1% from USD1.33 billion in the year-ago period. Service and other revenues accounted for USD913.9 million of the total, compared to USD1.28 billion in 1Q13. The company posted an adjusted OIBDA loss of USD83.93 million, which excludes the impact of non-cash asset impairments, restructuring charges and other unusual items, while NII’s consolidated net loss widened to USD376.1 million in the first three months of 2014 from USD207.5 million in the year-ago quarter. ‘Our focus for 2014 is to drive better operational and financial results by stabilising our operations in Mexico and investing in subscriber growth in Brazil,’ commented Steve Shindler, NII Holdings’ CEO, adding: ‘Our 3G net subscriber additions in Brazil more than doubled this quarter from Q4 2013, but were not enough to offset the continued subscriber losses in Mexico. We continue to believe that our focus on our core markets in Brazil and Mexico and our high quality networks, combined with aggressive rate plan offers and an increasing portfolio of smartphones, position us to attract customers and improve our results over the long term.’

NII recorded a net subscriber loss of 52,000 during the quarter to end March 2014 with 9.437 million users, a decrease of 3.8% from 9.814 million a year earlier. W-CDMA customers totalled 2.336 million at the end of 1Q14, up from 410,700 twelve months earlier. Subscribers in Brazil stood at 4.129 million (including 645,100 W-CDMA users), up from 3.885 million at 31 March 2013, while customers of Nextel Mexico fell 22% year-on-year to 3.052 million (including 1.458 million 3G) and Nextel Argentina users grew 9.8% to 1.997 million.