NII Holdings Plunges into Net Loss on Write-Downs
Published on: 28th Feb 2013
Note -- this news article is more than a year old.
By: Ian Mansfield
Lat America's NII Holdings which operates Nextel branded networks has reported that its fourth quarter revenues fell to US$1.4 billion from US$1.52 billion a year ago. The company also posted a deep loss of US$583 million compared to a modest profit of US$3.2 million a year earlier.
Financial results for the full year included revenues down by 10% to US$6.1 billion and a net loss of $765 million. Capital expenditures were $1.5 billion for the full year 2012. NII Holdings' consolidated ARPU was $38 for the full year 2012, down from $48 in the prior year.
The plunge into a loss was put down to the impact of non-cash asset impairment and restructuring charges, of US$936 million.
For the fourth quarter of 2012, the Company added about 2,000 net subscribers to its network. This level of net subscriber additions reflects the impact of the Company's strategic decision to accelerate the deactivation of unprofitable customers in Brazil, which resulted in a 292,000 net subscriber loss in Brazil for the quarter.
"While we achieved a number of important milestones in 2012, our financial results for the year did not meet expectations. In 2013, we intend to improve on our execution while we complete our investments in key initiatives that will enable us to drive long-term value and more profitable growth in the future. These key initiatives include the deployment of our new 3G networks in Sao Paulo and Rio de Janeiro and the expansion of our coverage footprint in Mexico," said Steve Shindler, NII Holdings' chairman and interim chief executive officer.
The company ended the year with a net debt of US$3.3 billion.
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