NII Holdings, Inc. (NASDAQ: NIHD) said it reported a net loss of 64,000 subscribers in its second quarter 2015, as iDEN subscriber losses in Brazil and Argentina exceeded 3G net additions in Brazil.
The company ended the quarter with 6.3 million total subscribers, a 2 percent increase from a year ago. For the quarter, the company generated consolidated operating revenues of USD421 million, a consolidated adjusted OIBDA loss of USD75 million, and a consolidated operating loss of USD179 million.
Capital expenditures were USD58 million for the quarter. The company´s consolidated adjusted OIBDA excludes the impact of non-cash asset impairments, restructuring charges and other unusual items. The company ended the quarter with USD672 million in consolidated cash, cash equivalents and short-term investments.
The company´s results for the second quarter of 2015 exclude the company´s operations in Mexico that were sold to AT&T on April 30, 2015 and reflect the implementation of fresh start accounting in connection with its emergence from bankruptcy on June 26, 2015.
NII Holdings´ consolidated average monthly service revenue per subscriber (ARPU) was USD19 for the second quarter of 2015, down from USD25 in the same quarter last year, due to the year over year decline in local currency values. The company´s consolidated average monthly churn rate for the quarter increased to 3.69 percent from 3.30 percent in the second quarter last year due to an increase in iDEN subscriber churn in both Brazil and Argentina.
Consolidated cost per gross addition (CPGA) was USD176 for the second quarter of 2015, a USD34 decrease from the year ago period, primarily due to an increase in new 3G postpaid subscribers in Brazil who use their own handsets rather than purchasing a new one from the company.
The company said it will not provide a financial outlook and will not host financial results conference calls for the remainder of 2015 due to the challenging economic conditions, foreign currency exchange rate volatility, and the recently announced transitions in its management team.
NII Holdings, Inc., a publicly held company based in Reston, VA, is a provider of differentiated mobile communication services for businesses and high value consumers in Latin America. NII Holdings, operating under the Nextel brand in Brazil and Argentina, offers fully integrated wireless communications tools with digital cellular voice services, data services and wireless Internet access.