Monday, May 12, 2014

NII Holdings Announces First Quarter 2014 Results $NIHD

First time writing about NIHD - they have annual interest expense 4.5x their market cap. Quarterly results:

"The Company reported a net loss of 52,000 subscribers for the quarter, bringing its quarter-end subscriber base to 9.4 million, a 4 percent decrease from a year ago. Financial results for the first quarter include consolidated operating revenues of $970 million, a 27 percent decrease compared to the first quarter of 2013; consolidated adjusted OIBDA loss, which excludes the impact of non-cash asset impairments, restructuring charges and other unusual items, of $84 million; and a consolidated operating loss of $239 million. For the first quarter 2014, the Company generated a net loss from continuing operations of $376 million, or $2.19 per basic share. Capital expenditures were $118 million for the period."


James said...

I've followed NIHD on and off for a while. My read is that it uses an idiosyncratic technology that originally made it the tech leader and let it offer features the other carriers couldn't. The other carriers had more subscribers, though, so they were able to fund innovation from a larger revenue base and eventually surpassed NIHD technologically, which crushed its ARPU and forced it to spend a lot to catch up.

Whatever the case, it's an amazing blow-up- from $1.50 to $90 and all the way back.

James said...

Morningstar has a pretty good analyst report on the company.

Anonymous said...

Bond is now trading at 35 - a 75% ytm.