Nextel reports net loss of $36.6 mil and loses 273,000 customers in Q1

NII Holdings, which operates under the Nextel brand in Latin America, reported net subscriber losses of 273,000 for the first quarter, attributed above all to the challenging economic conditions and more intense competitive environment in Brazil. Consolidated operating revenues came in at USD 227 million, with an adjusted OIBDA loss of USD 8 million and an overall net loss of USD 36.6 million.

Nextel Brasil’s average monthly service revenue per subscriber (ARPU) was USD 16 in the first quarter, down from USD 23 a year earlier due above all to a 37 percent decline in the average value of the Brazilian real. Overall churn for the quarter increased to 4.34 percent from 3.15 percent a year ago due to increases in both 3G and iDEN churn. Total subscribers were 4.02 million at the end of March, down from 4.38 million at the end of Q1 2015.

NII closed the sale of its Nextel Mexico business to AT&T for USD 1.875 million last year and Argentina’s new telecoms regulator Enacom finally approved the sale of its remaining 51 percent stake in Nextel Argentina to Cablevision at the end of the quarter after it divested a 49 percent stake in the operator last September for USD 178 million.

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