Nextel Brasil loses 121,000 subscribers in Q4

NII Holdings, the owner of mobile operator Nextel Brasil, reported net subscriber losses of 121,000 in the fourth quarter, but added 1,000 for the full year, resulting in a total subscriber base of 4.3 million at the end of 2015. The 3G subscriber base increased by 1.1 million or 65 percent over the year to 2.8 million, resulting in a 44 percent increase in 3G revenues. This was offset by losses on the operator's iDen platform to 1.6 million customers from 2.7 million at the end of 2014. Nextel Brazil's ARPU was USD 16 in Q4, down from USD 27 a year earlier, due primarily to a 51 percent decline in the average value of the Brazilian real. The average monthly churn rate for the quarter increased to 3.55 percent from 2.71 percent. 

NII reported Q4 operating revenues of USD 245 million, down from USD 404 million a year earlier following the sale of its activities in the rest of Latin America and debt restructuring. The adjusted OIBDA loss narrowed to USD 10.5 million from USD 62.3 million a year ago, and the company said it reduced operating costs by USD 54 million in Q4 alone. Cash burn reduced to USD 35 million in Q4 from USD 210 million in Q3. 

NII said the difficult macroeconomic environment and a more competitive landscape will continue to put pressure on results in 2016, and it will focus on achieving profitable 3G subscriber growth, while reducing operating costs and preserving liquidity to weather these challenges. Over the full year 2015, capital expenditure reached USD 142 million,  down from USD 428 million in 2014. The company ended the year with USD 427 million in cash and short-term investments and USD 227 million in cash held in escrow.

NII Holdings sold its operations in Mexico and Argentina last year, with the published results reflecting those markets as discontinued operations.