US-based telecoms operator NII Holdings, which emerged from Chapter 11 bankruptcy reorganisation proceedings in June last year, has announced its consolidated financial results for the twelve months ended 31 December 2015, reporting operating revenues of USD1.145 billion. Consolidated adjusted operating loss before depreciation and amortisation, which excludes the impact of non-cash asset impairments, restructuring charges and other unusual items, totalled USD148.3 million in FY 2015, and the firm posted a consolidated operating loss of USD456.7 million.
In connection with its emergence from bankruptcy, NII has adopted the provisions of ‘fresh start accounting’ as of 30 June 2015 and became a new entity for financial reporting purposes. In Brazil, NII recorded approximately 1,000 net subscriber additions in the twelve-month period, ending 2015 with 4.342 million customers, of which W-CDMA customers totalled 2.760 million (up from 1.672 million twelve months earlier) and iDEN subscribers 1.582 million (down from 2.669 million).
‘During the quarter, we achieved a USD54 million reduction in operating expenses from last quarter as the cost savings initiatives that our Brazil team implemented started to take hold,’ said Steve Shindler, NII Holdings’ CEO, adding: ‘As a result, we generated a USD14 million improvement in adjusted OIBDA, despite pressure on our revenues from weaker economic conditions. We expect the macroeconomic environment and a more competitive landscape will continue to put pressure on our results in 2016. We are continuing to focus our efforts on achieving profitable 3G subscriber growth, while reducing our operating costs and preserving our liquidity to weather these challenges.’