NII Reports Financial Results for Nextel Brazil
Wednesday, May 10, 2017 | Comments

NII Holdings announced its financial results for the first quarter of 2017. For the quarter, the company generated consolidated operating revenues of $251 million and a consolidated operating loss of $80 million.

Capital expenditures were $9 million for the quarter. The company reported 3G net subscriber additions of 38,000 in the quarter, which were offset by 115,000 subscriber losses on the company's iDEN network.

Nextel Brazil's average monthly service average revenue per user (ARPU) for the first quarter of 2017 was $21, a 31 percent increase on a reported basis, and a 5 percent increase on a constant currency basis, compared to the same quarter last year. Nextel Brazil's average monthly churn rate for the first quarter of 2017 was 3.71 percent, a 63 basis point decrease compared with the same quarter last year. Nextel Brazil's cost per gross addition (CPGA) was $84 for the first quarter of 2017, a $12 decrease on a reported basis, and a 28 percent decrease on a constant currency basis, compared to the same quarter last year.

During the first quarter, the company spent $118 million of cash and investments, primarily related to $45 million of cash used in operating activities (including approximately $30 million paid for interest and $19 million paid for annual spectrum license fees), $28 million of cash used for capital expenditures and $42 million of cash for scheduled principal payments.

At quarter-end, NII’s sources of funding included $213 million of cash and short-term investments, $163 million of cash held in escrow to secure indemnification obligations in connection with the sale of Nextel Mexico and $92 million in cash pledged as collateral to secure certain performance bonds in Brazil.

“We are making good progress working with our lenders to obtain multiple years of principal amortization relief on our loans,” said Dan Freiman, NII's chief financial officer (CFO). “Our ongoing discussions reflect a common interest in making the necessary modifications to our loan terms to allow adequate time for us to continue to build the scale in our business we need to generate free cash flow. We’re optimistic that we will reach an agreement with our lenders.”

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