NII Holdings reports fourth-quarter loss on one-time charges
Earnings Report: NII Holdings Inc., Reston
THE TAKE: NII Holdings Inc., which sells mobile service in Latin America, reported a 10 percent decrease in revenue during the fourth quarter and a loss of $593 million. The loss reflected one-time charges associated with the company’s actions to improve its customer base in Brazil by accelerating the deactivation of unprofitable customers in Brazil and a $299 million non-cash asset impairment charge to write down the value of its assets in Chile.
Total revenue: Revenue fell 8.4 percent in the fourth quarter to $1.47 billion, compared with $1.6 billion during the fourth quarter of 2011. Total revenues for the year fell 9.6 percent to $6.7 billion.
Profit: NII Holdings reported a loss of $592.9 million during the fourth quarter, compared with earnings of $3.2 million in the same period last year. The company reported a loss of $765.2 million for the year, compared with a profit of $225.2 million in 2011.
Earnings per share: Net loss of $3.45 per diluted share, compared with a profit of 2 cents per share in the fourth quarter.
THE COMPANY’S TAKE: “While we achieved a number of important milestones in 2012, our financial results for the year did not meet expectations,” Steve Shindler, NII Holdings’ chairman and interim CEO, said in a statement. “ 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.”