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NII Holdings Announces 2012 Fourth Quarter and Year-end Results

       NII Holdings Announces 2012 Fourth Quarter and Year-end Results

Full year 2012 net subscriber additions of 650,000, resulting in an ending
subscriber base of 11.4 million subscribers

Full year 2012 consolidated operating revenues of $6.1 billion

Full year 2012 consolidated adjusted operating income before depreciation and
amortization (adjusted OIBDA) of $936 million

PR Newswire

RESTON, Va., Feb. 28, 2013

RESTON, Va., Feb. 28, 2013 /PRNewswire/ --NII Holdings, Inc. [NASDAQ: NIHD]
today announced its consolidated financial results for the fourth quarter and
full year 2012. For the full year 2012, the Company added 650,000 net
subscribers to its network, bringing its total year-end subscriber base to
11.4 million, a 6 percent increase over year-end 2011. Financial results for
the full year 2012 included consolidated operating revenues of $6.1 billion, a
10 percent decrease compared to 2011; consolidated adjusted OIBDA, which
excludes the impact of non-cash asset impairment and restructuring charges, of
$936 million, a 41 percent decrease compared to 2011, and a consolidated
operating loss of $123 million. For the full year 2012, the Company generated
a net loss of $765 million, or $4.46 per basic share. Capital expenditures
were $1.5 billion for the full year 2012.

(Logo: http://photos.prnewswire.com/prnh/20110919/FL70458LOGO)

For the fourth quarter of 2012, the Company added about 2,000 net subscribers
to its network. This level of net subscriber additions reflects the impact of
the Company's strategic decision to accelerate the deactivation of
unprofitable customers in Brazil, which resulted in a 292,000 net subscriber
loss in Brazil for the quarter. Financial results for the fourth quarter of
2012 included consolidated operating revenues of $1.5 billion, consolidated
adjusted OIBDA of $128 million, and a consolidated operating loss of $379
million. The operating loss for the fourth quarter of 2012 reflects one-time
charges associated with the Company's actions to improve its subscriber base
in Brazil and a $299 million non-cash asset impairment charge to write down
the value of its assets in Chile.

"While we achieved a number of important milestones in 2012, our financial
results for the year did not meet expectations. In 2013, we intend to improve
on our execution while wecomplete 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," said Steve Shindler, NII Holdings' chairman and interim chief
executive officer.

NII Holdings' consolidated average monthly service revenue per subscriber
(ARPU) was $38 for the full year 2012, down from $48 in the prior year. The
Company also reported consolidated average monthly churn of 2.64 percent for
the full year 2012, a 90 basis point increase compared with the monthly churn
rate for the full year 2011. Consolidated cost per gross add (CPGA) was $275
for the full year 2012, a $28 decrease from 2011.

The Company ended 2012 with $4.9 billion in total debt and $1.6 billion in
consolidated cash and investments, resulting in $3.3 billion of net debt at
the end of the year.

In February 2013, the Company issued $750 million principal amount of
11^3/[8]% senior notes due 2019 through one of its Luxembourg subsidiaries.
The size of the offering was increased from the originally announced $400
million to $750 million. The notes are guaranteed by the Company.

"We are pleased with the outcome of our recent senior notes offering. The high
level of demand for the notes allowed us to upsize the offering to $750
million," said Juan Figuereo, NII Holdings' executive vice president and chief
financial officer. "With our existing cash and investment balances, the funds
received from the offering and over $500 million in committed equipment
financing available to us, we are in a strong liquidity position as we
complete and load our 3G networks. We are continuing to pursue other
strategies to enhance our capital structure and liquidity, including the
potential sale of our tower assets in Mexico and Brazil."

Additional information relating to NII Holdings' fourth quarter and 2012
results will be provided on the Company's earnings call on Thursday, February
28, 2013 from 8:30 AM to 9:15 AM EST. The call is available via webcast,
online at www.nii.com on the Investor Relations page or by phone at the
numbers below.

Phone:
Domestic
1 877 703 6102 pass-code: NII HOLDINGS
International
+1 857 244 7301 pass-code: NII HOLDINGS
Please click here for additional Global Access Numbers

All participants are asked to dial in 10-15 minutes prior to the start of the
conference call. If you are unable to participate, a rebroadcast of the
conference call will be available for two weeks following the call. The call
will also be available via webcast, online at www.nii.com on the Investor
Relations page.

Conference Call Replay:
Domestic
1 888 286 8010 pass-code: 87381158
International
+1 617 801 6888 pass-code: 87381158

In addition to the preliminary results prepared in accordance with accounting
principles generally accepted in the United States (GAAP) provided throughout
this press release, NII Holdings has presented consolidated adjusted OIBDA,
ARPU, CPGA and Net Debt. These measures are non-GAAP financial measures and
should be considered in addition to, but not as substitutes for, the
information prepared in accordance with GAAP. Reconciliations from GAAP
results to these non-GAAP financial measures are provided in the notes to the
attached financial table. To view these and other reconciliations of non-GAAP
financial measures that the Company uses and information about how to access
the conference call discussing NII Holdings' fourth quarter and full year 2012
results, visit the investor relations link at www.nii.com.

About NII Holdings, Inc.

NII Holdings, Inc., a publicly held company based in Reston, Va., is a
provider of differentiated mobile communication services for businesses and
high value consumers in Latin America. NII Holdings, operating under the
Nextel brand in Brazil, Mexico, Argentina, Peru and Chile, offers fully
integrated wireless communications tools with digital cellular voice services,
data services, wireless Internet access and Nextel Direct Connect^® and
International Direct Connect^SM, a digital two-way radio. NII Holdings is a
Fortune 500 and Barron's 500 company, and has also been named one of the best
places to work among multinationals in Latin America by the Great Place to
Work^® Institute. The Company trades on the NASDAQ market under the symbol
NIHD. Visit the Company's website at www.nii.com.

Nextel, the Nextel logo and Nextel Direct Connect are trademarks and/or
service marks of Nextel Communications, Inc.

Visit NII Holdings' news room for news and to access our markets' news
centers: nii.com/newsroom.

Safe Harbor Statement

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995. This news release includes "forward-looking statements" within the
meaning of the securities laws. The statements in this news release regarding
the business outlook, future performance and forward-looking guidance, as well
as other statements that are not historical facts, are forward-looking
statements. Forward-looking statements are estimates and projections
reflecting management's judgment based on currently available information and
involve a number of risks and uncertainties that could cause actual results to
differ materially from those suggested by the forward-looking statements.
With respect to these forward-looking statements, management has made
assumptions regarding, among other things, network usage, customer growth and
retention, pricing, operating costs, the timing of various events, the
economic and regulatory environment and the foreign exchange rates that will
prevail during 2013. Future performance cannot be assured and actual results
may differ materially from those in the forward-looking statements. Some
factors that could cause actual results to differ include the risks and
uncertainties relating to the impact of more intense competitive conditions
and changes in economic conditions in the markets we serve; the impact on our
financial results, and potential reductions in the recorded value of our
assets, that may result from fluctuations in foreign currency exchange rates
and, in particular, fluctuations in the relative values of the currencies of
the countries in which we operate compared to the U.S. dollar; the risk that
our network technologies will not perform properly or support the services our
customers want or need, including the risk that technology developments to
support our services will not be timely delivered; the risk that customers in
the markets we serve will not find our services attractive; unexpected results
of litigation; and the additional risks and uncertainties that are described
in NII Holdings' Annual Report on Form 10-K for the fiscal year ended December
31, 2012, as well as in other reports filed from time to time by NII Holdings
with the Securities and Exchange Commission. This press release speaks only as
of its date, and NII Holdings disclaims any duty to update the information
herein.

Media Contacts:

NII Holdings, Inc.
1875 Explorer Street, Suite 1000
Reston, VA. 20190
(703) 390-5100
www.nii.com

Investor Relations: Tim Perrott
(703) 390-5113
tim.perrott@nii.com

Media Relations: Claudia Restrepo
(786) 251-7020
claudia.restrepo@nii.com





NII HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE YEARS AND THREE MONTHS ENDED DECEMBER 31, 2012 AND 2011

(in millions, except per share amounts)


                                Year Ended              Three Months Ended

                                 December 31,          December 31,
                                2012        2011        2012        2011
Operating revenues
                                $ 5,779.2   $ 6,403.5   $ 1,395.2   $ 1,519.4
 Service and other revenues
 Digital handset and accessory 307.3       331.4       70.4        79.9
revenues
                                6,086.5     6,734.9     1,465.6     1,599.3
Operating expenses

 Cost of service (exclusive of 1,690.5     1,789.4     427.4       429.9
depreciation and amortization

 included below)
 Cost of digital handset and   915.1       855.9       219.2       212.6
accessory sales
 Selling, general and          2,324.4     2,343.1     602.9       629.1
administrative
 Provision for doubtful        220.6       161.9       88.2        40.5
accounts
 Impairment and restructuring  330.4       —           306.5       —
charges
 Depreciation                  678.2       614.2       184.3       150.8
 Amortization                  50.6        38.9        16.4        9.4
                                6,209.8     5,803.4     1,844.9     1,472.3
Operating (loss) income         (123.3)     931.5       (379.3)     127.0
Other income (expense)
                                (373.2)     (322.1)     (98.9)      (49.3)
 Interest expense
 Interest income               34.1        34.2        8.6         9.3
 Foreign currency transaction  (53.4)      (37.0)      (11.2)      2.8
(losses) gains, net
 Other expense, net            (27.3)      (37.2)      (5.9)       (20.5)
                                (419.8)     (362.1)     (107.4)     (57.7)
(Loss) income before income tax (543.1)     569.4       (486.7)     69.3
provision
Income tax provision            (222.1)     (344.2)     (106.2)     (66.1)
Net (loss) income               $ (765.2)   $ 225.2     $ (592.9)   $ 3.2
Net (loss) income per common    $ (4.46)    $ 1.31      $ (3.45)    $ 0.02
share, basic
Net (loss) income per common    $ (4.46)    $ 1.30      $ (3.45)    $ 0.02
share, diluted
Weighted average number of
common shares outstanding,      171.5       170.6       171.7       171.2

 basic
Weighted average number of
common shares outstanding,      171.5       172.8       171.7       172.2

 diluted





CONSOLIDATED BALANCE SHEET DATA

(in millions)


                                          December 31,  December 31,
                                          2012          2011
Cash and cash equivalents                 $  1,383.5    $  2,322.9
Short-term investments                    204.8         343.4
Accounts receivable, less allowance for  705.7         858.5
 doubtful accounts of $112.9 and $66.3
Property, plant and equipment, net        3,884.9       3,481.9
Intangible assets, net                    1,164.7       1,182.4
Total assets                              9,223.1       9,822.1
Total debt                                4,866.2       4,818.2
Total liabilities                         6,906.6       6,684.0
Stockholders' equity                      2,316.5       3,138.1





NII HOLDINGS, INC. AND SUBSIDIARIES

OPERATING RESULTS AND METRICS

FOR THE YEARS AND THREE MONTHS ENDED DECEMBER 31, 2012 AND 2011

(UNAUDITED)




NII Holdings, Inc
(subscribers in thousands)
                                    Year Ended            Three Months Ended

                                    December 31,          December 31,
                                    2012       2011       2012       2011
Total digital subscribers (as of    11,361.5   10,711.9   11,361.5   10,711.9
December 31)
 Net subscriber additions          649.6      1,684.4    2.2        466.6
 Churn (%)                         2.64%      1.74%      3.40%      1.78%
Average monthly revenue per
handset/unit in                     $   38     $   48     $   36     $   43

service (ARPU) (1)
Cost per gross add (CPGA) (1)       $   275    $   303    $   260    $   299



Nextel Brazil
(dollars in millions, except ARPU and CPGA, and subscribers in thousands)
                             Year Ended              Three Months Ended

                             December 31,             December 31,
                             2012        2011        2012          2011
Operating revenues
                             $ 2,756.2   $ 3,293.9   $  640.0      $  775.2
 Service and other revenues
 Digital handset and        146.2       162.9       32.3          40.4
accessory revenues
                             2,902.4     3,456.8     672.3         815.6
Operating expenses

 Cost of service (exclusive
of depreciation and          909.9       1,024.7     210.8         246.3
amortization included

 below)
 Cost of digital handset    210.3       254.8       46.3          66.6
and accessory sales
 Selling, general and       921.3       996.2       246.4         262.7
administrative
 Provision for doubtful     186.3       133.8       78.5          33.6
accounts
Segment earnings             674.6       1,047.3     90.3          206.4
 Impairment and             2.4         —           —             —
restructuring charges
 Management fee and other   33.7        40.0        (7.0)         10.1
 Depreciation and           320.7       311.3       88.2          74.8
amortization
Operating income             $ 317.8     $ 696.0     $  9.1        $  121.5
Total digital subscribers    3,846.3     4,115.2     3,846.3       4,115.2
(as of December 31)
 Net subscriber             (269.0)     796.1       (291.7)       192.2
(deactivations) additions
 Churn (%)                  2.96%       1.58%       4.69%         1.63%
ARPU (1)                     $ 49        $ 65        $  47         $  56
CPGA (1)                     $ 256       $ 284       $  293        $  312



Nextel Mexico
(dollars in millions, except ARPU and CPGA, and subscribers in thousands)
                                    Year Ended              Three Months Ended

                                    December 31,            December 31,
                                    2012        2011        2012      2011
Operating revenues
                                    $ 2,033.3   $ 2,165.6   $ 505.2   $ 498.4
 Service and other revenues
 Digital handset and accessory     76.3        83.8        15.6      18.5
revenues
                                    2,109.6     2,249.4     520.8     516.9
Operating expenses

 Cost of service (exclusive of
depreciation and amortization       413.5       436.0       123.3     97.5
included

 below)
 Cost of digital handset and       505.0       436.2       115.5     104.7
accessory sales
 Selling, general and              614.4       612.8       161.9     153.3
administrative
 Provision for doubtful accounts   15.7        17.2        4.2       4.6
Segment earnings                    561.0       747.2       115.9     156.8
 Impairment and restructuring      0.4         —           —         —
charges
 Management fee and other          125.5       122.2       27.6      20.3
 Depreciation and amortization     203.0       197.2       56.1      44.4
Operating income                    $ 232.1     $ 427.8     $ 32.2    $ 92.1
Total digital subscribers (as of    3,901.7     3,695.4     3,901.7   3,695.4
December 31)
 Net subscriber additions          206.4       334.1       40.7      72.0
 Churn (%)                         2.05%       1.79%       2.07%     2.01%
ARPU (1)                            $ 40        $ 45        $ 39      $ 40
CPGA (1)                            $ 435       $ 413       $ 455     $ 381



Nextel Argentina
(dollars in millions, except ARPU and CPGA, and subscribers in thousands)
                                        Year Ended          Three Months Ended

                                        December 31,        December 31,
                                        2012      2011      2012      2011
Operating revenues
                                        $ 636.8   $ 596.6   $ 160.2   $ 156.9
 Service and other revenues
 Digital handset and accessory         48.4      52.3      12.8      13.3
revenues
                                        685.2     648.9     173.0     170.2
Operating expenses

 Cost of service (exclusive of         187.6     186.7     43.2      48.0
depreciation and amortization included

 below)
 Cost of digital handset and accessory 79.6      88.1      20.2      23.0
sales
 Selling, general and administrative   224.6     198.8     57.5      56.1
 Provision for doubtful accounts       12.4      6.5       3.2       1.5
Segment earnings                        181.0     168.8     48.9      41.6
 Impairment and restructuring charges  0.1       —         —         —
 Management fee and other              29.2      18.0      8.6       0.6
 Depreciation and amortization         45.4      42.2      11.4      10.5
Operating income                        $ 106.3   $ 108.6   $ 28.9    $ 30.5
Total digital subscribers (as of        1,755.6   1,388.2   1,755.6   1,388.2
December 31)
 Net subscriber additions              367.4     234.3     63.1      134.1
 Churn (%)                             2.31%     1.54%     3.16%     1.43%
ARPU (1)                                $ 29      $ 35      $ 27      $ 35
CPGA (1)                                $ 118     $ 197     $ 107     $ 135



Nextel Peru
(dollars in millions, except ARPU and CPGA, and subscribers in thousands)
                                   Year Ended             Three Months Ended

                                   December 31,           December 31,
                                   2012        2011       2012       2011
Operating revenues
                                   $ 314.0     $ 321.9    $ 77.0     $ 82.5
 Service and other revenues
 Digital handset and accessory    29.3        32.2       6.6        7.6
revenues
                                   343.3       354.1      83.6       90.1
Operating expenses

 Cost of service (exclusive of
depreciation and amortization      116.1       107.7      29.9       27.5
included

 below)
 Cost of digital handset and      85.3        71.9       23.4       16.5
accessory sales
 Selling, general and             152.6       136.6      41.2       36.5
administrative
 Provision for doubtful accounts  3.3         2.6        0.9        0.7
Segment (losses) earnings          (14.0)      35.3       (11.8)     8.9
 Impairment and restructuring     0.6         —          —          —
charges
 Management fee and other         21.6        30.0       6.7        6.9
 Depreciation and amortization    79.2        64.9       20.4       18.5
Operating loss                     $ (115.4)   $ (59.6)   $ (38.9)   $ (16.5)
Total digital subscribers (as of   1,659.5     1,434.8    1,659.5    1,434.8
December 31)
 Net subscriber additions         224.7       306.6      144.9      62.5
 Churn (%)                        3.12%       2.21%      3.40%      2.71%
ARPU (1)                           $ 16        $ 19       $ 15       $ 18
CPGA (1)                           $ 140       $ 143      $ 107      $ 135



(1) For information regarding ARPU and CPGA, see "Non-GAAP Reconciliations for
the Years and Three Months Ended December 31, 2012 and 2011" included in this
release.



NON-GAAP RECONCILIATIONS
FOR THE YEARS AND THREE MONTHS ENDED DECEMBER 31, 2012 AND 2011
(UNAUDITED)

Consolidated OIBDA and Consolidated Adjusted OIBDA

Consolidated operating income before depreciation and amortization, or OIBDA,
represents operating income before depreciation and amortization expense.
Consolidated adjusted operating income before depreciation and amortization,
or adjusted OIBDA, represents consolidated operating income before
depreciation expense, amortization expense, material non-cash asset
impairments, and severance and contract termination costs associated with
publicly announced restructuring plans. During the fourth quarter of 2012, we
converted our consolidated OIBDA metric to a consolidated adjusted OIBDA
metric to better align this metric with our business objectives. Consolidated
OIBDA and consolidated adjusted OIBDA are not measurements under accounting
principles generally accepted in the United States, may not be similar to
consolidated OIBDA and consolidated adjusted OIBDA measures of other companies
and should be considered in addition to, but not as substitutes for, the
information contained in our statements of operations. We believe that
consolidated OIBDA and consolidated adjusted OIBDA provide useful information
to investors because they are indicators of our operating performance,
especially in a capital intensive industry such as ours, since they exclude
items that are not directly attributable to ongoing business operations.
Consolidated OIBDA and consolidated adjusted OIBDA can be reconciled to our
consolidated statements of operations as follows (in millions):



NII Holdings, Inc
                                  Year Ended              Three Months Ended

                                  December 31,            December 31,
                                  2012        2011        2012        2011
Consolidated operating (loss)     $ (123.3)   $ 931.5     $ (379.3)   $ 127.0
income
Consolidated depreciation         678.2       614.2       184.3       150.8
Consolidated amortization         50.6        38.9        16.4        9.4
Consolidated operating income
(loss)
                                  605.5       1,584.6     (178.6)     287.2
 before depreciation and
amortization
Chile non-cash asset impairment   298.9       —           298.9       —
charge
Other non-cash asset impairment   23.9        —           —           —
charges
Restructuring charges             7.6         —           7.6         —
Consolidated adjusted operating
income
                                  $ 935.9     $ 1,584.6   $ 127.9     $ 287.2
 before depreciation and
amortization



                                  Adjusted OIBDA

                                  Guidance Range (1)(2)
                                  Year Ending

                                  December 31,
                                  2013
Operating loss                    $   (200) - (175)
Depreciation                          750 - 765
Amortization                          50 - 60
Operating income before
                                      600 - 650
 depreciation and amortization
Non-cash asset impairment charges     —
Restructuring charges                 —
Adjusted operating income before
                                  $   600 - 650
 depreciation and amortization



(1) The Company's guidance estimate for OIBDA for the year ending December
31, 2013 includes the impact of approximately $40 million of non-cash equity
compensation expense. This estimate is predicated on a number of assumptions,
including the assumption that foreign currency exchange rates and general
economic conditions in its markets will remain relatively stable during the
year. The information regarding the Company's outlook and objectives for 2013,
including its guidance estimate for OIBDA for the year ended December 31,
2013, is forward looking and is based upon management's current beliefs, as
well as a number of assumptions concerning future events, and as such, should
be taken in the context of the risks and uncertainties identified in the "Safe
Harbor" Statement under the Private Securities Litigation Reform Act of 1995
included above and of the risks and uncertainties outlined in the SEC filings
of NII Holdings, Inc., including the Company's Annual Report on Form 10-K for
the year ended December 31, 2012, and the Company's other filings with the
SEC.


(2) Does not take into account the impact of the potential impairment of
certain information systems that we have decided in 2013 to repurpose or no
longer use in certain of our operations, as well as other potential non-cash
charges that could be required in 2013.

Average Monthly Revenue Per Handset/Unit in Service (ARPU)

Average monthly revenue per handset/unit in service, or ARPU, is an industry
term that measures service revenues, which we refer to as subscriber revenues,
per period from our customers divided by the weighted average number of
handsets in commercial service during that period. ARPU is not a measurement
under accounting principles generally accepted in the United States, may not
be similar to ARPU measures of other companies and should be considered in
addition, but not as a substitute for, the information contained in our
statements of operations. We believe that ARPU provides useful information
concerning the appeal of our rate plans and service offerings and our
performance in attracting and retaining high value customers. Other revenue
includes revenues for such services as roaming, handset maintenance,
cancellation fees, analog and other. ARPU can be calculated and reconciled to
our consolidated statement of operations as follows (in millions, except
ARPU):



NII Holdings, Inc
                               Year Ended              Three Months Ended

                               December 31,            December 31,
                               2012        2011        2012        2011
                               (unaudited)
Consolidated service and other $ 5,779.2   $ 6,403.5   $ 1,395.2   $ 1,519.4
revenues
Less: consolidated other       (655.7)     (768.7)     (156.0)     (181.2)
revenues
Total consolidated subscriber  $ 5,123.5   $ 5,634.8   $ 1,239.2   $ 1,338.2
revenues
ARPU calculated with           $ 38        $ 48        $ 36        $ 43
subscriber revenues
ARPU calculated with service   $ 43        $ 54        $ 41        $ 48
and other revenues



Nextel Brazil
                                   Year Ended              Three Months Ended

                                   December 31,            December 31,
                                   2012        2011        2012      2011
                                   (unaudited)
Service and other revenues         $ 2,756.2   $ 3,293.9   $ 640.0   $ 775.2
Less: other revenues               (325.2)     (405.1)     (74.8)    (95.6)
Total subscriber revenues          $ 2,431.0   $ 2,888.8   $ 565.2   $ 679.6
ARPU calculated with subscriber    $ 49        $ 65        $ 47      $ 56
revenues
ARPU calculated with service and   $ 55        $ 74        $ 53      $ 64
other revenues



Nextel Mexico
                                   Year Ended              Three Months Ended

                                   December 31,            December 31,
                                   2012        2011        2012      2011
                                   (unaudited)
Service and other revenues         $ 2,033.3   $ 2,165.6   $ 505.2   $ 498.4
Less: other revenues               (220.9)     (252.3)     (53.0)    (57.0)
Total subscriber revenues          $ 1,812.4   $ 1,913.3   $ 452.2   $ 441.4
ARPU calculated with subscriber    $ 40        $ 45        $ 39      $ 40
revenues
ARPU calculated with service and   $ 45        $ 51        $ 43      $ 45
other revenues



Nextel Argentina
                                       Year Ended          Three Months Ended

                                       December 31,        December 31,
                                       2012      2011      2012      2011
                                       (unaudited)
Service and other revenues             $ 636.8   $ 596.6   $ 160.2   $ 156.9
Less: other revenues                   (83.8)    (83.3)    (21.4)    (21.3)
Total subscriber revenues              $ 553.0   $ 513.3   $ 138.8   $ 135.6
ARPU calculated with subscriber        $ 29      $ 35      $ 27      $ 35
revenues
ARPU calculated with service and other $ 33      $ 40      $ 31      $ 40
revenues



Nextel Peru
                                       Year Ended          Three Months Ended

                                       December 31,        December 31,
                                       2012      2011      2012       2011
                                       (unaudited)
Service and other revenues             $ 314.0   $ 321.9   $  77.0    $ 82.5
Less: other revenues                   (24.2)    (25.3)    (6.4)      (6.6)
Total subscriber revenues              $ 289.8   $ 296.6   $  70.6    $ 75.9
ARPU calculated with subscriber        $ 16      $ 19      $  15      $ 18
revenues
ARPU calculated with service and other $ 18      $ 21      $  16      $ 20
revenues

Cost per Gross Add (CPGA)

Cost per gross add, or CPGA, is an industry term that is calculated by
dividing our selling, marketing and handset and accessory subsidy costs,
excluding costs unrelated to initial customer acquisition, by our new
subscribers during the period, or gross adds. CPGA is not a measurement under
accounting principles generally accepted in the United States, may not be
similar to CPGA measures of other companies and should be considered in
addition, but not as a substitute for, the information contained in our
statements of operations. We believe CPGA is a measure of the relative cost
of customer acquisition. CPGA can be calculated and reconciled to our
consolidated statements of operations as follows (in millions, except CPGA):



NII Holdings, Inc
                                   Year Ended              Three Months Ended

                                   December 31,            December 31,
                                   2012        2011        2012      2011
                                   (unaudited)
Consolidated digital handset and   $ 307.3     $ 331.4     $ 70.4    $ 79.9
accessory revenues
Less: consolidated uninsured       (19.7)      (23.2)      (5.3)     (5.1)
handset replacement revenues
Consolidated digital handset and   287.6       308.2       65.1      74.8
accessory revenues, net
Less: consolidated cost of handset 915.1       854.9       219.2     212.6
and accessory sales
 Consolidated handset subsidy     627.5       546.7       154.1     137.8
costs
Consolidated selling and marketing 799.5       849.0       206.0     241.5
Costs per statement of operations  1,427.0     1,395.7     360.1     379.3
Less: consolidated costs unrelated (284.9)     (261.2)     (57.8)    (62.6)
to initial customer acquisition
 Customer acquisition costs       $ 1,142.1   $ 1,134.5   $ 302.3   $ 316.7
Cost per Gross Add                 $ 275       $ 303       $ 260     $ 299



Nextel Brazil
                                       Year Ended          Three Months Ended

                                       December 31,        December 31,
                                       2012      2011      2012      2011
                                       (unaudited)
Digital handset and accessory revenues $ 146.2   $ 162.9   $  32.3   $ 40.4
Less: uninsured handset replacement    (7.8)     (10.3)    (2.6)     (2.0)
revenues
Digital handset and accessory          138.4     152.6     29.7      38.4
revenues, net
Less: cost of handset and accessory    210.3     254.9     46.3      66.6
sales
 Handset subsidy costs               71.9      102.3     16.6      28.2
Selling and marketing                  262.7     365.8     65.3      102.9
Costs per statement of operations      334.6     468.1     81.9      131.1
Less: costs unrelated to initial       (25.6)    (42.8)    (1.1)     (10.0)
customer acquisition
 Customer acquisition costs          $ 309.0   $ 425.3   $  80.8   $ 121.1
Cost per Gross Add                     $ 256     $ 284     $  293    $ 312



Nextel Mexico
                                       Year Ended          Three Months Ended

                                       December 31,        December 31,
                                       2012      2011      2012      2011
                                       (unaudited)
Digital handset and accessory revenues $ 76.3    $ 83.8    $ 15.6    $ 18.5
Less: uninsured handset replacement    (11.9)    (12.8)    (2.7)     (3.1)
revenues
Digital handset and accessory          64.4      71.0      12.9      15.4
revenues, net
Less: cost of handset and accessory    505.0     436.2     115.5     104.7
sales
 Handset subsidy costs               440.6     365.2     102.6     89.3
Selling and marketing                  298.9     287.5     77.8      70.6
Costs per statement of operations      739.5     652.7     180.4     159.9
Less: costs unrelated to initial       (241.6)   (201.5)   (52.4)    (48.2)
customer acquisition
 Customer acquisition costs          $ 497.9   $ 451.2   $ 128.0   $ 111.7
Cost per Gross Add                     $ 435     $ 413     $ 455     $ 381



Nextel Argentina
                                         Year Ended        Three Months Ended

                                         December 31,      December 31,
                                         2012     2011     2012       2011
                                         (unaudited)
Digital handset and accessory revenues   $ 48.4   $ 52.3   $  12.8    $ 13.3
Less: cost of handset and accessory      79.6     88.1     20.2       23.0
sales
 Handset subsidy costs                 31.2     35.8     7.4        9.7
Selling and marketing                    68.7     64.3     17.8       18.7
Costs per statement of operations        99.9     100.1    25.2       28.4
Less: costs unrelated to initial         (4.6)    (9.2)    (1.0)      (2.5)
customer acquisition
 Customer acquisition costs            $ 95.3   $ 90.9   $  24.2    $ 25.9
Cost per Gross Add                       $ 118    $ 197    $  107     $ 135



Nextel Peru
                                        Year Ended         Three Months Ended

                                        December 31,       December 31,
                                        2012      2011     2012       2011
                                        (unaudited)
Digital handset and accessory revenues  $ 29.3    $ 32.2   $  6.6     $ 7.6
Less: cost of handset and accessory     85.3      71.9     23.4       16.5
sales
 Handset subsidy costs                56.0      39.7     16.8       8.9
Selling and marketing                   69.0      62.9     19.2       16.6
Costs per statement of operations       125.0     102.6    36.0       25.5
Less: costs unrelated to initial        (12.2)    (7.2)    (2.9)      (1.7)
customer acquisition
 Customer acquisition costs           $ 112.8   $ 95.4   $  33.1    $ 23.8
Cost per Gross Add                      $ 140     $ 143    $  107     $ 135

Net Debt

Net debt represents total debt less cash, cash equivalents, short-term and
long-term investments. Net debt to consolidated operating income before
depreciation and amortization represents net debt divided by consolidated
operating income before depreciation and amortization. We include the cash in
long-term investments to the items subtracted from total debt to calculate net
debt. Net debt is not a measurement under accounting principles generally
accepted in the United States, may not be similar to net debt measures of
other companies and should be considered in addition to, but not as a
substitute for, the information contained in our balance sheets. We believe
that net debt and net debt to consolidated operating income before
depreciation and amortization provide useful information concerning our
liquidity and leverage. Net debt as of December 31, 2012 can be calculated as
follows (in millions):

NII Holdings, Inc
Total debt                      $ 4,866.2
Add: debt discounts             24.7
Less: cash and cash equivalents 1,383.5
Less: short-term investments    204.8
Net debt                        $ 3,302.6

Impact of Foreign Currency Fluctuations

The following table shows the impact of changes in foreign currency exchange
rates on certain financial measures for the twelve and three months ended
December 31, 2011 compared to the same period in 2012 by (i) adjusting the
relevant measures for the twelve and three months ended December 31, 2011 to
levels that would have resulted if the average foreign currency exchange rates
for the twelve and three months ended December 31, 2011 were the same as the
average foreign currency exchange rates that were in effect for the twelve and
three months ended December 31, 2012; and (ii) comparing the actual and
adjusted financial measures for the twelve and three months ended December 31,
2011 to the similar financial measures for the twelve and three months ended
December 31, 2011 to show the percentage change in those measures before and
after taking those adjustments into account. The amounts reflected in the
following table for operating income before depreciation and amortization on a
consolidated basis and segment earnings for Nextel Brazil, Nextel Mexico and
Nextel Argentina, before the adjustments for changes in foreign currency
exchange rates, are based on the calculations contained elsewhere in these
non-GAAP reconciliations for the twelve and three months ended December 31,
2012 and 2011. The average foreign currency exchange rates for each of the
relevant currencies during each of the twelve and three months ended December
31, 2012 and 2011 are included in the notes to the table below. The
information reflected in the following table is not a measurement under
accounting principles generally accepted in the United States and should be
considered in addition to, but not as a substitute for, the information
contained in our statements of operations. We believe that these calculations
provide useful information concerning our relative performance for the twelve
and three months ended December 31, 2012 compared to the same period in 2011
by removing the impact of the significant difference in the average foreign
currency exchange rates in effect for those periods.



NII Holdings, Inc
(dollars in thousands)
              Year Ended December 31,
                                                                  YTD
                                                                  2011   YTD 2011
                                       
                                                                  to YTD to YTD
              YTD 2011     YTD 2011     YTD 2011     YTD 2012     2012   2012
                           Adjustment   Normalized
              Actual                                 Actual       Actual Normalized
                           (1)          (1)                       Growth
                                                                         Growth
                                                                  Rate   Rate (3)
                                                                  (2)
Consolidated:
 Operating   $ 6,734,946  $ (693,142)  $ 6,041,804  $ 6,086,463  (10)%  1%
revenues
 Adjusted
operating
income before
              1,584,639    (291,832)    1,292,807    935,860      (41)%  (28)%

depreciation
and
amortization
Nextel
Brazil:
 Operating   $ 3,456,758  $ (501,378)  $ 2,955,380  $ 2,902,350  (16)%  (2)%
revenues
 Segment     1,047,297    (208,411)    838,886      674,632      (36)%  (20)%
earnings
Nextel
Mexico:
 Operating   $ 2,249,447  $ (132,094)  $ 2,117,353  $ 2,109,573  (6)%   —
revenues
 Segment     747,247      (54,552)     692,695      561,059      (25)%  (19)%
earnings
Nextel
Argentina:
 Operating   $ 648,926    $ (59,508)   $ 589,418    $ 685,201    6%     16%
revenues
 Segment     168,790      (28,957)     139,833      180,956      7%     29%
earnings



NII Holdings, Inc
(dollars in thousands)
              Three Months Ended December 31,
                                                                  4Q
                                                                  2011   4Q 2011
                                       
                                                                  to 4Q  to 4Q 2012
              4Q 2011      4Q 2011      4Q 2011      4Q 2012      2012
                                                                         Normalized
              Actual       Adjustment   Normalized   Actual       Actual
                                                                  Growth Growth
                           (1)         (1)                             Rate (3)
                                                                  Rate
                                                                  (2)
Consolidated:
 Operating   $ 1,599,334  $ (94,798)   $ 1,504,536  $ 1,465,594  (8)%   (3)%
revenues
 Adjusted
operating
income before
              287,197      (37,480)     249,717      127,878      (55)%  (49)%

depreciation
and
amortization
Nextel
Brazil:
 Operating   $ 815,644    $ (102,484)  $ 713,160    $ 672,340    (18)%  (6)%
revenues
 Segment     206,393      (36,586)     169,807      90,274       (56)%  (47)%
earnings
Nextel
Mexico:
 Operating   $ 516,931    $ 26,553     $ 543,484    $ 520,788    1%     (4)%
revenues
 Segment     156,781      9,750        166,531      115,922      (26)%  (30)%
earnings
Nextel
Argentina:
 Operating   $ 170,230    $ (19,354)   $ 150,876    $ 173,048    2%     15%
revenues
 Segment     41,616       (9,126)      32,490       48,914       18%    51%
earnings



(1) The "4Q 2011 Normalized" and "YTD 2011 Normalized" amounts reflect the
impact of applying the average foreign currency exchange rates for the twelve
and three months ended December 31, 2012 to the operating revenues earned in
foreign currencies and to the other components of each of the actual financial
measures shown above for the twelve and three months ended December 31, 2011,
other than certain components of those measures consisting of U.S.
dollar-based operating expenses, which were not adjusted. The amounts included
under the columns "4Q 2011 Adjustment" and "YTD 2011 Adjustment" reflect the
amount determined by subtracting the "4Q 2011 Normalized" and "YTD 2011
Normalized" amounts calculated as described in the preceding sentence from the
"4Q 2011 Actual" and "YTD 2011 Actual" amounts and reflect the impact of the
year-over-year change in the average foreign currency exchange rates on each
of the financial measures for the twelve and three months ended December 31,
2011. The average foreign currency exchange rates for each of the relevant
currencies during the twelve and three months ended December 31, 2012 and 2011
for purposes of these calculations were as follows:



               Year Ended    Three Months Ended

               December 31,  December 31,
               2012   2011   2012       2011
Brazilian real 1.95   1.67   2.06       1.80
Mexican peso   13.17  12.42  12.95      13.62
Argentine peso 4.55   4.13   4.80       4.26



(2) The percentage amounts in these columns reflect the growth rates for
each of the financial measures comparing the amounts in the "4Q 2012 Actual"
and "YTD 2012 Actual" columns with those in the "4Q 2011 Actual" and "YTD 2011
Actual" columns.
(3) The percentage amounts in these columns reflect the growth rates for
each of the financial measures comparing the amounts in the "4Q 2012 Actual"
and "YTD 2012 Actual" columns with those in the "4Q 2011 Normalized" and "YTD
2011 Normalized" columns.

SOURCE NII Holdings, Inc.

Website: http://www.nii.com