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NII Holdings Slumps to a Loss on Foreign Exchange Costs

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NII Holdings which operates Nextel branded networks in Latin and South America says that it added 433,000 net subscribers to its networks, bringing its ending subscriber base to more than 10.2 million, a 19 percent increase compared to the subscriber base over the past year.

Financial results for the quarter included consolidated operating revenues of USD1.75 billion, a 21 percent increase, but also reported a net loss of $3 million compared to a profit of USD118.5 million.

Last years profit was boosted by a gain of USD28.4 million from foreign currency transactions, but this year the company lost USD63.9 million from those transactions.

"Our consolidated operating results during the quarter included improved subscriber growth, driven by a significant improvement in net subscriber additions in Mexico," said Steve Dussek, NII Holdings' chief executive officer."

NII Holdings' consolidated average monthly service revenue per subscriber (ARPU) was $49 for the third quarter of 2011, up nearly $2 when compared to the same period last year, driven primarily by year-over-year improvements in average currency exchange rates.

The company ended the quarter with $4.1 billion in total long-term debt and $2.6 billion in consolidated cash and investments, resulting in $1.5 billion of net debt at the end of the quarter.

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