NII Holdings disappointed by Q2 performance

12 Aug 2015

US-based telecoms operator NII Holdings, which emerged from its Chapter 11 bankruptcy reorganisation proceedings in June this year, has announced its consolidated financial results for the second quarter of 2015, reporting consolidated operating revenues of USD420.8 million, a decrease of 28.3% from USD586.9 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 USD74.9 million in the three months ended 30 June 2015, compared to an OIBDA loss of USD72.6 million in 2Q14. NII said its results for the quarter exclude its operations in Mexico that were sold to AT&T on 30 April 2015, and reflect the implementation of ‘fresh start accounting’ in connection with its emergence from bankruptcy in June.

NII recorded 64,200 net subscriber losses in the quarter to close June 2015 with 6.263 million customers, as growth in Brazilian 3G users was offset by iDEN losses in both Brazil and Argentina. W-CDMA customers totalled 2.258 million at the end of 2Q15, up from 1.050 million twelve months earlier. Subscribers in Brazil stood at 4.435 million (including 2.258 million W-CDMA users), up from 4.188 million at mid-2014, while customers of Nextel Argentina fell 7.5% over the twelve month period, from 1.976 million to 1.828 million.

‘We are disappointed in our performance during the second quarter, including the sequential decline in our adjusted OIBDA, which fell short of our expectations due to our inability to deliver on our revenue growth goals,’ commented Steve Shindler, NII Holdings’ CEO, adding: ‘Our results to date and the negative economic outlook put us well behind the goals we set for ourselves in the business plan that was developed last year in connection with our Chapter 11 restructuring process. We are implementing contingency plans designed to help us reach our long-term goals, but our focus for the remainder of this year will be to build our 3G subscriber base in Brazil and pursue cost saving strategies to help improve our profitability’.