NII Holdings’ net loss widens in Q3

11 Nov 2014

US-based operator NII Holdings, which filed for relief under Chapter 11 of the Bankruptcy Code in September, has reported consolidated operating revenues of USD926.7 million for the third quarter of 2014, a decrease of 15% from USD1.086 billion in the year-ago period. Consolidated adjusted OIBDA loss totalled USD9.9 million in 3Q 2014, which excludes the impact of non-cash asset impairments, restructuring charges and other unusual items, including an in-period gain of USD75 million on the completion of the sale of towers in Mexico. NII, the parent company of Nextel-branded wireless operators in a number of Latin America markets, said its consolidated net loss from continuing operations widened from USD259.5 million in 3Q13 to USD456.8 million twelve months later. ‘We implemented strategies designed to stabilise our revenues and pursued more aggressive actions to reduce our costs across our business,’ commented Juan Figuereo, NII Holdings’ executive vice president and CFO, adding: ‘While we are focused on our efforts to turnaround our business, we are also working with our bondholders in the Chapter 11 process to develop a reorganisation plan that will improve our capital structure, enhance our liquidity and give us the flexibility to continue to execute on the turnaround of our business. We will also continue to engage in strategic discussions with interested parties about our valuable assets.’

NII recorded a net subscriber loss of 40,000 during the three months to end-September 2014 to bring its total to 9.055 million users, a decrease of 5% from 9.508 million a year earlier, as subscriber losses in Mexico offset additions in Brazil. W-CDMA customers totalled 3.188 million at the end of 3Q14, up from 1.120 twelve months earlier. Subscribers in Brazil stood at 4.276 million (including 1.334 million W-CDMA users), up from 3.888 million at end September 2013, while customers of Nextel Mexico fell 23% year-on-year to 2.829 million (including 1.854 million 3G) and Nextel Argentina users decreased 0.8% to 1.949 million.