NII Holdings Posts Record Results for Third Quarter 2008

NII Holdings has reported that for the third quarter, the Company added 394,500 net subscribers, matching the company's quarterly record of net subscriber additions set in the second quarter of 2008, resulting in an ending subscriber base of over 5.8 million subscribers, a 33% increase over the subscriber base reported at the end of the third quarter of 2007.

Financial results for the third quarter of 2008 included consolidated operating revenues of US $1.2 billion, a new quarterly record representing a 38% increase over the same period last year. The Company reported consolidated operating income before depreciation and amortization, or OIBDA, for the third quarter of US $331 million, a 40% increase over the same period last year.

"Strong demand for our differentiated wireless service combined with solid execution and our expanding presence in the region drove our results for the third quarter," said Steve Dussek, NII's Chief Executive Officer. "We generated the largest number of gross additions and matched the largest number of net subscriber additions in our history, while delivering record levels of revenues and OIBDA. Our team will focus on building upon the operational momentum reflected in the strong results that we have delivered year-to-date, and assuming average exchange rates for local currencies against the dollar do not decline significantly from the average rates we have seen so far this quarter, we believe we are on track to meet our guidance on subscribers, revenue, and OIBDA for 2008," he added.

NII Holdings' average monthly service revenue per subscriber (service ARPU) was US $59 for the third quarter, consistent with the level reported in the same period last year and during the second quarter of 2008.

The Company continued to enhance the coverage and capacity of its network during the quarter, adding 277 sites, primarily in Brazil and Mexico. Total consolidated capital expenditures were $205 million during the third quarter of 2008, largely related to investments in network capacity and geographic expansion in those markets.

"We have continued to produce excellent financial and operating results driven by the strong demand for our services and supported by the increased capacity and extended geographic reach of our network," said Gokul Hemmady, NII's Chief Financial Officer. "We have a solid balance sheet and cash position, and our outlook remains positive as we continue to meet the communications needs of a large and growing base of subscribers who use our service as a necessary business tool essential to their everyday livelihood," he added.

The Company ended the quarter with $2.29 billion in total long-term debt, consisting of $1.55 billion in convertible notes, $467 million in syndicated loan facilities and $273 million in local currency tower financing and other debt obligations. With quarter-end consolidated cash and cash equivalents of $1.4 billion and short-term investments of $90 million, the Company's net debt at the end of the third quarter was $808 million.

Posted to the site on 23rd October 2008