NII Holdings Full-Year Revenues Up 30%
Published on: 25th Feb 2009
Note -- this news article is more than a year old.
NII Holdings, which operates Nextel branded networks in Latin and Southern America has reported that it added 1.47 million new customers in 2008, and ended the year with 6.3 million customers a rise of 31%.
Full year 2008 consolidated operating revenues were $4.27 billion- a 30% increase over 2007, while net income reached $369 million. During 2008, the Company expanded its network coverage to an additional 10 million people primarily in Mexico and Brazil. The Company reported full-year 2008 capital expenditures of $831 million.
"NII delivered strong growth and profitability in 2008, exceeding our goals for net subscribers, revenues, and OIBDA that we outlined for the year," said Steve Dussek, NII Holdings' CEO. "In 2009, we will sharpen our focus on what we call our smart growth strategy. This strategy positions NII to profitably pursue opportunities in our markets, by increasing our focus on high quality subscribers, intensifying our focus on the metrics that drive our business, and by striving to improve our cost structure and maintain a disciplined approach to capital allocation."
NII Holdings' consolidated average monthly service revenue per subscriber (ARPU) was $55 for the full year 2008, a $3 decline compared to 2007. The Company also reported churn of 1.9% for the full year 2008 and for the fourth quarter, an increase of 20 basis points compared to both the full-year 2007 and the fourth quarter 2007 churn levels.
The Company ended the year with approximately $2.2 billion in total long-term debt. With year-end consolidated cash and cash equivalents of $1.2 billion and short-term investments of $82 million, the Company's net debt at the end of the year was $868 million.
The Company believes that its strong balance sheet positions it to pursue funding opportunities as market conditions permit to support the Company's long term plans, including plans to participate in the upcoming spectrum auctions in Brazil and Mexico to build 3G networks. The Company will be opportunistic in approaching the capital markets, recognizing that it may be appropriate to pursue funding when it is available given the recent volatility in the global financial markets.