NII Holdings Quarterly Revenues Rise by 28%
Published on: 30th Jul 2010
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NII H oldings which operates Nextel branded networks in Southern America says that it added 392,000 net subscribers to its network, bringing its ending subscriber base to nearly 8.2 million, a 22% increase in the ending subscriber base compared to the end of the second quarter of 2009.
Financial results for the quarter included consolidated operating revenues of $1.35 billion, a 28% increase compared to the second quarter of 2009, and consolidated OIBDA of $348 million for the quarter, a 30% increase compared to the same period last year. Consolidated OIBDA results for the quarter reflect a $22 million refund of excess fees paid for spectrum use in Mexico while applications to renew certain existing spectrum licenses in the country were pending. Upon their renewal in the second quarter, these licenses became subject to a new reduced fee structure, which resulted in this refund of excess amounts previously paid under the old fee structure. For the second quarter of 2010, the Company generated consolidated operating income of $213 million and consolidated net income of $75 million, or $0.45 per basic share.
The Company continued to invest in the expansion of the coverage and capacity of its networks reporting consolidated second quarter 2010 capital expenditures of $230 million, of which $122 million was invested in Brazil.
"We delivered excellent results for the quarter and the first half of the year highlighted by robust subscriber growth and strong OIBDA results in each of the first two periods," said Steve Dussek, NII Holdings' Chief Executive Officer. "These results reflect our balanced approach to growth and profitability, which is built on strategies designed to improve the quality of our customer base and customer retention across all of our markets. We have doubled our subscriber base over the past three years, while maintaining our focus on profitability with OIBDA growing 67% during that period. We believe the opportunity for profitable growth in Latin America is significant, and that our differentiated approach and the high quality of our expanding services will position us to capture this growth in the future," he added.
NII Holdings' consolidated ARPU was $47 for the second quarter of 2010, up $3 when compared to the same period last year due primarily to strengthening of local currencies.
Nextel Mexico and Televisa bid as a consortium in the recent spectrum auctions in Mexico. The consortium was identified by the Cofetel, the Mexican telecommunications regulatory authority, as the high bidder for a 30 MHz nationwide block of spectrum in the AWS spectrum band. As contemplated by the auction rules, the Cofetel has 30 days to verify the results of the auction. After the auction results are verified and the award process is completed, the Company plans to invest in the development and deployment of a 3G network throughout Mexico.