NII Holdings Q4 Loss Widens; Affects Liquidity Position

(RTTNews) - NII Holdings, Inc. (NIHD), a provider of wireless communication services under the Nextel brand name to businesses and individuals in Mexico, Brazil, Argentina, Peru, and Chile, Friday reported a wider net loss for the fourth quarter as revenue plunged. The company said the disappointing results and weaker operating performance raise concerns of its outlook on the liquidity position for long term.

"We are clearly disappointed with our operational performance in 2013, and we are taking actions to improve our business results, including the launch of Project Accelerate, a program designed to build the foundation for growth as we use our 3G networks to drive operational improvements in 2014," said CEO Steve Shindler.

For the fourth-quarter, net loss widened to $745.8 million or $4.33 per share, from $592.9 million or $3.45 per share in the corresponding period last year.

On average, 12 analysts polled by Thomson-Reuters estimated the company's loss to be $1.59 for the quarter. Analysts' estimates typically exclude one-time items.

Operating revenues for the quarter decreased to $1.022 billion from $1.318 billion a year earlier.

The company's average monthly service revenue per subscriber was $31 in the fourth quarter, which compares with $40 in the same period last year. For the 3-month period, the company reported a net loss of 247,000 subscribers, reflecting the impact of continuing challenges affecting the Company's operations in Mexico and its the modification of deactivation policy for inactive prepaid subscribers, which resulted in a higher level of prepaid subscriber deactivations, especially in Mexico.

Furthermore, the company believes it needs to improve its operating performance so as to meet financial obligations and fund its business in 2015 and beyond. These concerns, combined with the potential impact if the company cannot satisfy certain financial covenants under its existing operating company debt obligations in 2014, raise questions about the Company's ability to continue as a going concern.

At the end of the year, the company's debt was $5.8 billion. With $2.4 billion in consolidated cash and investments, net debt amounts to $3.4 billion.