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NII Holdings Inc Reports Operating Results (10-Q)

November 08, 2011 | About:
10qk

10qk

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NII Holdings Inc (NIHD) filed Quarterly Report for the period ended 2011-09-30.

Nii Holdings Inc has a market cap of $4.03 billion; its shares were traded at around $23.57 with a P/E ratio of 13.3 and P/S ratio of 0.7. Nii Holdings Inc had an annual average earning growth of 24.2% over the past 10 years.

Highlight of Business Operations:

The $1,026.2 million, or 27%, and $307.8 million, or 23%, increases in consolidated service and other revenues in the nine and three months ended September 30, 2011 compared to the same periods in 2010 are largely the result of 21% and 20% increases in the average number of total handsets in service over both periods, which resulted from the continued demand for our services and the balanced growth and expansion strategies in our markets. These increases were also the result of increases in consolidated average revenue per subscriber, which resulted primarily from the appreciation in the average value of the Brazilian real.

Significant factors contributing to the $752.1 million, or 43%, and $221.0 million, or 34%, increases in service and other revenues in the nine and three months ended September 30, 2011 compared to the same periods in 2010 included 30% and 28% increases in Nextel Brazils average number of handsets in service, as well as increases in average revenues per subscriber, primarily resulting from the effect of the appreciation of the Brazilian real.

The $168.9 million, or 28%, and $52.2 million, or 24%, increases in cost of service in the nine and three months ended September 30, 2011 compared to the same periods in 2010 are primarily due to increases of $98.9 million, or 30%, and $28.3 million, or 23%, in interconnect costs due to an increase in the size of our subscriber base, as well as an increase in interconnect minutes of use for calls that terminate on other carriers networks. Despite these increases, Nextel Brazils cost of service as a percentage of its total operating revenues decreased from 33% and 31% in nine and three months ended September 30, 2010 to 29% in the same periods in 2011, primarily due to increases in less costly mobile-to-mobile minutes of use as a result of Nextel Brazils implementation of rate plans that encouraged more in-network calling.

The $173.1 million, or 12%, and $50.6 million, or 10%, increases in service and other revenues in the nine and three months ended September 30, 2011 compared to the same periods in 2010 are primarily due to increases in the average number of digital handsets in service resulting from subscriber growth across Nextel Mexicos markets.

We recognized net income of $207.5 million for the nine months ended September 30, 2011 and a net loss of $2.8 million for the third quarter of 2011, compared to $242.5 million and $118.5 million for the nine and three months ended September 30, 2010. During the nine and three months ended September 30, 2011 and 2010, our operating revenues more than offset our operating expenses, excluding depreciation and amortization, and cash capital expenditures.

Read the The complete Report

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