NII posts Q1 net loss of USD36.6m

11 May 2016

US-based telecoms operator NII Holdings has announced its consolidated financial results for the three months ended 31 March 2016, reporting operating revenues of USD226.5 million, compared to USD363.4 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 USD8.1 million in the first quarter of 2016, compared to an adjusted OIBDA loss of USD18.3 million twelve months earlier. NII Holdings, which emerged from Chapter 11 bankruptcy reorganisation proceedings in June last year, posted a net loss of USD36.6 million for the three months to end-March 2016. NII sold its Nextel-branded operations in Mexico to an indirect subsidiary of AT&T in April 2015, with a sale of its Argentine unit to Grupo Clarin following later in the year.

In Brazil, NII recorded first quarter net subscriber losses of 273,000, attributed to challenging economic conditions and a more competitive environment. As of 31 March 2016 the firm had a total of 4.024 million mobile customers (down from 4.385 million twelve months previously), of which W-CDMA customers totalled 2.709 million (up from 1.970 million in 1Q15) and iDEN subscribers 1.315 million (down from 2.415 million). ARPU dropped from USD23 per month in the first quarter of 2015 to USD16 a year later, due primarily to a 37% year-on-year decline in the average value of the Brazilian real.

‘Our financial results for the quarter reflect our continued efforts to improve our adjusted OIBDA by lowering our costs through operational improvements and expense savings,’ noted CEO Steve Shindler, adding: ‘Given the current climate, we are applying a targeted approach to subscriber growth, focusing our efforts on customers that provide the most attractive revenue and churn characteristics to keep our quarterly adjusted OIBDA loss to a minimum.’

Brazil, United States, Nextel Telecomunicacoes (now part of Claro Brasil), NII Holdings