NII posts 20% drop in Q1 revenue to USD764m

12 May 2015

US-based operator NII Holdings, which filed for relief under Chapter 11 of the Bankruptcy Code in September last year, has announced its consolidated financial results for the first quarter of 2015, which include the company’s operations in Mexico that were sold to AT&T on 30 April 2015. NII reported consolidated operating revenues of USD763.9 million for Q1 2015, a decrease of 20.1% from USD955.8 million in the year-ago period. Consolidated adjusted operating loss before depreciation and amortisation, which excludes the impact of non-cash asset impairments, restructuring charges and other unusual items, totalled USD21.4 million in the first three months of 2015, compared to an OIBDA loss of USD54.8 million in 1Q14. NII said its net loss from continuing operations narrowed slightly from USD376.1 million to USD309.5 million over the same period.

NII recorded net subscriber additions of 165,400 during the first three months of 2015, lifting its total customer base to 9.349 million, an increase of 1.9% from 9.178 million twelve months earlier. W-CDMA customers totalled 4.112 million at the end of 1Q15, up from 2.132 million at end-March 2014. Subscribers in Brazil stood at 4.392 million (including 1.972 million W-CDMA users), up from 4.129 million year-on-year, while customers of Nextel Mexico fell 1.0% over the twelve month period to 3.022 million (including 2.140 million 3G) and Nextel Argentina users decreased 3.1% year-on-year to 1.935 million.

‘The previously announced closing of the sale of Nextel Mexico to AT&T will provide us with the funding we need to continue to grow and effectively compete in Brazil while we continue to seek strategic options for our business in Argentina,’ said Juan Figuereo, NII Holdings’ executive vice president and CFO, adding: ‘We also recently received permission from the bankruptcy court to solicit creditor approval of our proposed reorganization plan which, if approved by our creditors and confirmed by the bankruptcy court, would allow us to emerge from Chapter 11 by mid-year. While we are encouraged by these developments, we believe the key to enhancing the value of our business is to deliver better financial results, and we will remain focused on achieving that goal.’

Argentina, Brazil, Mexico, United States, FiberCorp (formerly Nextel Argentina), Nextel de Mexico, Nextel Telecomunicacoes (Nextel Brazil), NII Holdings