NII Holdings Announces First Quarter 2013 Results

              NII Holdings Announces First Quarter 2013 Results

- Net subscriber additions of 152,000

- Consolidated operating revenues of $1.41 billion

- Consolidated adjusted operating income before depreciation and amortization
(adjusted OIBDA) of $230 million

PR Newswire

RESTON, Va., May 2, 2013

RESTON, Va., May 2, 2013 /PRNewswire/ --NII Holdings, Inc. (NASDAQ: NIHD)
today announced its consolidated financial results for the first quarter of
2013. During the quarter, the Company added 152,000 net subscribers to its
network, bringing its ending subscriber base to over 11.5 million, a 5 percent
increase from March 31, 2012. Financial results for the quarter included
consolidated operating revenues of $1.41 billion, down 13 percent from the
level reported in the first quarter of 2012, and consolidated adjusted OIBDA,
which excludes the impact of non-cash asset impairment and restructuring
charges, of $230 million, a 35 percent decline compared to the same period
last year. The decrease in consolidated adjusted OIBDA was primarily driven by
incremental expenses related to the Company's deployment of its planned next
generation networks, lower average revenue per subscriber (ARPU) on a local
currency basis and weaker average foreign currency exchange rates. For the
first quarter of 2013, the Company generated a consolidated operating loss of
$102 million and a consolidated net loss of $208 million, or $1.21 per basic
share. Capital expenditures were $156 million for the quarter.

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

"During the quarter, we took actions to execute against our key priorities,
and we are tracking well on our goals for the year," said Steve Shindler, NII
Holdings' chairman and chief executive officer. "We continue to focus on
completing our next generation networks in Mexico and Brazil, improving our
operational performance and realigning our business operations to provide the
best return on investment. We have taken steps to achieve these goals,
including adding more discipline to our processes and improving our focus on
execution, which has positively impacted our network deployments and
operational performance. Our recently announced sale of Nextel Peru to Entel
is one step in this process to realign our business. We are excited about the
progress that we have made to date, and there is a lot more to come."

NII Holdings' consolidated ARPU was $35 for the first quarter of 2013, down
almost $7 compared to the same period last year. This decline resulted from
lower priced rate plans the Company offered in response to more aggressive
competition in recent quarters, particularly in Brazil, and from the
year-over-year weakening in local foreign currency exchange rates. The Company
reported churn of 2.59 percent for the first quarter, up about 50 basis points
from the level reported for the same period last year. Consolidated cost per
gross add (CPGA) was $240 for the first quarter, a $36 decrease compared to
the first quarter of 2012.

The Company ended the quarter with $5.7 billion in total debt and $1.9 billion
in consolidated cash and investments, resulting in net debt of $3.8 billion.
In the first quarter, the Company completed a senior note financing that
generated $750 million in gross proceeds and in April, the Company completed a
follow-on financing that generated an additional $161 million in gross
proceeds, further enhancing its liquidity position.

"The high level of demand for our senior note offering in February allowed us
to complete a follow-on transaction, which generated additional liquidity at a
lower cost of capital than the original offering," said Juan Figuereo, NII
Holdings' executive vice president and chief financial officer. "These
financings combined with the proposed sale of Nextel Peru and our planned
tower sale will improve our already strong liquidity position, and will enable
us to complete the deployment of our next generation networks as quickly as
possible in our largest markets of Mexico and Brazil, improving our
competitive position in these markets."

Additional information relating to NII Holdings' first quarter 2013 results
will be provided on the Company's earnings call on Thursday, May 2, 2013 from
8:30 AM to 9:15 AM EDT. The call will be available via webcast, online
www.nii.com on the Investor Relations page or by phone at the numbers provided
below.

Phone:
Domestic
1.877.280.4961 pass-code: NIIHOLDINGS
International
1.857.244.7318 pass-code: NIIHOLDINGS
Please click herefor additional Global Access Numbers

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

For a replay of this call, please use the following:

Conference Call Replay:
Domestic
1.888.286.8010 pass-code: 21339350
International
1.617.801.6888 pass-code: 21339350

The financial results provided throughout this press release are prepared in
accordance with accounting principles generally accepted in the United States,
or GAAP. NII 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 tables.
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's first quarter 2013 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, 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 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 and International Direct
Connect are trademarks and/or service marks of Nextel Communications, Inc.,
and are used by NII's subsidiaries under license in Latin America.

Visit NII's news room for news and to access our markets' news centers:
www.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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2013 AND 2012
(in millions, except per share amounts)
                                                        Three Months Ended

                                                         March 31,
                                                        2013        2012
                                                        (unaudited)
Operating revenues
                                                        $ 1,359.9   $ 1,543.7
Service and other revenues
Handset and accessory revenues                          53.5        89.4
                                                        1,413.4     1,633.1
Operating expenses

Cost of service (exclusive of depreciation and          425.8       443.0
amortization

 included below)
Cost of handset and accessory sales                     222.4       228.7
Selling, general and administrative                     517.2       561.0
Provision for doubtful accounts                         18.0        45.5
Impairment and restructuring charges                    128.0       —
Depreciation                                            187.8       160.6
Amortization                                            16.1        9.7
                                                        1,515.3     1,448.5
Operating (loss) income                                 (101.9)     184.6
Other income (expense)
                                                        (109.8)     (88.6)
Interest expense
Interest income                                         6.5         6.2
Foreign currency transaction gains (losses), net        23.2        (14.3)
Other expense, net                                      (4.6)       (9.0)
                                                        (84.7)      (105.7)
(Loss) income before income tax provision               (186.6)     78.9
Income tax provision                                    (20.9)      (65.3)
Net (loss) income                                       $ (207.5)   $ 13.6
Net (loss) income per common share, basic               $ (1.21)    $ 0.08
Net (loss) income per common share, diluted             $ (1.21)    $ 0.08
Weighted average number of common shares outstanding,
                                                        171.7       171.2
 basic
Weighted average number of common shares outstanding,
                                                        171.7       172.0
 diluted



CONDENSED CONSOLIDATED BALANCE SHEET DATA
(in millions)
                                          March 31,    December 31,
                                          2013         2012
                                          (unaudited)
Cash and cash equivalents                 $  1,884.5   $  1,383.5
Short-term investments                    43.9         204.8
Accounts receivable, less allowance
                                          879.1        705.7
for doubtful accounts of $94.0 and $112.9
Property, plant and equipment, net        3,859.6      3,884.9
Intangible assets, net                    1,185.6      1,164.7
Total assets                              9,685.1      9,223.1
Total debt                                5,702.2      4,866.2
Total liabilities                         7,494.7      6,906.6
Stockholders' equity                      2,190.4      2,316.5

NII HOLDINGS, INC. AND SUBSIDIARIES
OPERATING RESULTS AND METRICS
FOR THE THREE MONTHS ENDED MARCH 31, 2013 and 2012
(UNAUDITED)

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

                                               March 31,
                                               2013        2012
Total subscribers* (as of March 31)            11,513.1    10,972.1
Net subscriber additions                       151.6       260.1
Churn (%)                                      2.59     %  2.07     %
Average monthly revenue per subscriber unit in
                                               $   35      $   42
 service (ARPU) (1)
Cost per gross add (CPGA) (1)                  $   240     $   276

* Each subscriber, which we also refer to as a subscriber unit, represents an
active subscriber identity module, or SIM, which is the level at which we have
tracked and will continue to track subscribers.

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

                                                      March 31,
                                                      2013           2012
Operating revenues
                                                      $  616.6       $ 776.9
Service and other revenues
Handset and accessory revenues                        19.3           47.4
                                                      635.9          824.3
Operating expenses

Cost of service (exclusive of depreciation and        217.4          250.7
amortization included

 below)
Cost of handset and accessory sales                   50.6           59.0
Selling, general and administrative                   202.6          239.6
Provision for doubtful accounts                       7.7            37.0
Segment earnings                                      157.6          238.0
Impairment and restructuring charges                  23.8           —
Management fee and other                              12.8           13.5
Depreciation and amortization                         97.6           78.9
Operating income                                      $  23.4        $ 145.6
Total subscribers (as of March 31)                    3,884.7        4,226.9
Net subscriber additions                              38.4           111.6
Churn (%)                                             2.34      %    2.02    %
ARPU (1)                                              $  47          $ 55
CPGA (1)                                              $  204         $ 223



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

                                                      March 31,
                                                      2013           2012
Operating revenues
                                                      $  501.0       $ 522.5
Service and other revenues
Handset and accessory revenues                        13.0           22.0
                                                      514.0          544.5
Operating expenses

Cost of service (exclusive of depreciation and        123.1          103.1
amortization included

 below)
Cost of handset and accessory sales                   128.5          128.7
Selling, general and administrative                   157.0          140.2
Provision for doubtful accounts                       4.1            3.8
Segment earnings                                      101.3          168.7
Impairment and restructuring charges                  19.7           —
Management fee and other                              18.3           31.8
Depreciation and amortization                         62.7           46.7
Operating income                                      $  0.6         $ 90.2
Total subscribers (as of March 31)                    3,917.6        3,758.9
Net subscriber additions                              15.8           63.5
Churn (%)                                             2.08      %    2.02    %
ARPU (1)                                              $  38          $ 42
CPGA (1)                                              $  487         $ 392



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

                                                      March 31,
                                                      2013           2012
Operating revenues
                                                      $  153.1       $ 156.3
Service and other revenues
Handset and accessory revenues                        13.9           12.2
                                                      167.0          168.5
Operating expenses

Cost of service (exclusive of depreciation and        40.1           49.4
amortization included

 below)
Cost of handset and accessory sales                   21.2           20.3
Selling, general and administrative                   50.3           48.6
Provision for doubtful accounts                       3.1            3.5
Segment earnings                                      52.3           46.7
Impairment and restructuring charges                  3.7            —
Management fee and other                              7.4            5.0
Depreciation and amortization                         11.3           10.9
Operating income                                      $  29.9        $ 30.8
Total subscribers (as of March 31)                    1,819.2        1,447.2
Net subscriber additions                              63.6           59.0
Churn (%)                                             2.93      %    1.46    %
ARPU (1)                                              $  25          $ 31
CPGA (1)                                              $  94          $ 171



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

                                                      March 31,
                                                      2013          2012
Operating revenues
                                                      $  76.8       $ 81.3
Service and other revenues
Handset and accessory revenues                        5.8           7.5
                                                      82.6          88.8
Operating expenses

Cost of service (exclusive of depreciation and        26.7          28.2
amortization included

 below)
Cost of handset and accessory sales                   16.1          18.0
Selling, general and administrative                   35.4          33.6
Provision for doubtful accounts                       1.5           0.6
Segment earnings                                      2.9           8.4
Impairment and restructuring charges                  3.4           —
Management fee and other                              (0.2)         4.4
Depreciation and amortization                         21.1          19.3
Operating loss                                        $  (21.4)     $ (15.3)
Total subscribers (as of March 31)                    1,699.3       1,449.3
Net subscriber additions                              39.8          14.6
Churn (%)                                             3.53       %  2.90     %
ARPU (1)                                              $  14         $ 17
CPGA (1)                                              $  101        $ 160

(1) For information regarding ARPU and CPGA, see "Non-GAAP Reconciliations for
the Three Months Ended March 31, 2013 and 2012" included in this release.

NON-GAAP RECONCILIATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2013 AND 2012
(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, severance costs associated with publicly announced restructuring
plans and other material non-recurring charges. 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
                                       Three Months Ended

                                       March 31,
                                       2013        2012
Consolidated operating (loss) income   $ (101.9)   $ 184.6
Consolidated depreciation              187.8       160.6
Consolidated amortization              16.1        9.7
Consolidated operating income before
                                       102.0       354.9
 depreciation and amortization
Non-cash asset impairment charges      85.3        —
Restructuring charges                  42.7        —
Consolidated adjusted operating income
                                       $ 230.0     $ 354.9
 before depreciation and amortization

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

Average monthly revenue per subscriber 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 subscriber units 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
                                                Three Months Ended

                                                March 31,
                                                2013        2012
                                                (unaudited)
Consolidated service and other revenues         $ 1,359.9   $ 1,543.7
Less: consolidated other revenues               (154.5)     (178.2)
Total consolidated subscriber revenues          $ 1,205.4   $ 1,365.5
ARPU calculated with subscriber revenues        $ 35        $ 42
ARPU calculated with service and other revenues $ 40        $ 47



Nextel Brazil
                                                Three Months Ended

                                                March 31,
                                                2013      2012
                                                (unaudited)
Service and other revenues                      $ 616.6   $ 776.9
Less: other revenues                            (73.5)    (92.8)
Total subscriber revenues                       $ 543.1   $ 684.1
ARPU calculated with subscriber revenues        $ 47      $ 55
ARPU calculated with service and other revenues $ 53      $ 62



Nextel Mexico
                                                Three Months Ended

                                                March 31,
                                                2013      2012
                                                (unaudited)
Service and other revenues                      $ 501.0   $ 522.5
Less: other revenues                            (53.4)    (58.0)
Total subscriber revenues                       $ 447.6   $ 464.5
ARPU calculated with subscriber revenues        $ 38      $ 42
ARPU calculated with service and other revenues $ 43      $ 47



Nextel Argentina
                                                Three Months Ended

                                                March 31,
                                                2013      2012
                                                (unaudited)
Service and other revenues                      $ 153.1   $ 156.3
Less: other revenues                            (19.8)    (20.6)
Total subscriber revenues                       $ 133.3   $ 135.7
ARPU calculated with subscriber revenues        $ 25      $ 31
ARPU calculated with service and other revenues $ 29      $ 36



Nextel Peru
                                                Three Months Ended

                                                March 31,
                                                2013       2012
                                                (unaudited)
Service and other revenues                      $  76.8    $ 81.3
Less: other revenues                            (7.0)      (6.1)
Total subscriber revenues                       $  69.8    $ 75.2
ARPU calculated with subscriber revenues        $  14      $ 17
ARPU calculated with service and other revenues $  15      $ 19

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
                                                            Three Months Ended

                                                            March 31,
                                                            2013      2012
                                                            (unaudited)
Consolidated handset and accessory revenues                 $ 53.5    $ 89.4
Less: consolidated uninsured replacement revenues           (4.2)     (5.0)
Consolidated handset and accessory revenues, net            49.3      84.4
Less: consolidated cost of handset and accessory sales      222.4     228.7
Consolidated handset subsidy costs                          173.1     144.3
Consolidated selling and marketing                          158.3     189.5
Costs per statement of operations                           331.4     333.8
Less: consolidated costs unrelated to initial customer      (81.6)    (75.3)
acquisition
Customer acquisition costs                                  $ 249.8   $ 258.5
Cost per Gross Add                                          $ 240     $ 276



Nextel Brazil
                                                      Three Months Ended

                                                      March 31,
                                                      2013       2012
                                                      (unaudited)
Handset and accessory revenues                        $  19.3    $ 47.4
Less: uninsured replacement revenues                  (1.9)      (1.9)
Handset and accessory revenues, net                   17.4       45.5
Less: cost of handset and accessory sales             50.6       59.0
Handset subsidy costs                                 33.2       13.5
Selling and marketing                                 44.9       76.5
Costs per statement of operations                     78.1       90.0
Less: costs unrelated to initial customer acquisition (15.1)     (8.8)
Customer acquisition costs                            $  63.0    $ 81.2
Cost per Gross Add                                    $  204     $ 223



Nextel Mexico
                                                      Three Months Ended

                                                      March 31,
                                                      2013      2012
                                                      (unaudited)
Handset and accessory revenues                        $ 13.0    $ 22.0
Less: uninsured replacement revenues                  (2.3)     (3.1)
Handset and accessory revenues, net                   10.7      18.9
Less: cost of handset and accessory sales             128.5     128.7
Handset subsidy costs                                 117.8     109.8
Selling and marketing                                 71.7      65.8
Costs per statement of operations                     189.5     175.6
Less: costs unrelated to initial customer acquisition (62.8)    (62.3)
Customer acquisition costs                            $ 126.7   $ 113.3
Cost per Gross Add                                    $ 487     $ 392



Nextel Argentina
                                                      Three Months Ended

                                                      March 31,
                                                      2013       2012
                                                      (unaudited)
Handset and accessory revenues                        $  13.9    $ 12.2
Less: cost of handset and accessory sales             21.2       20.3
Handset subsidy costs                                 7.3        8.1
Selling and marketing                                 14.3       14.8
Costs per statement of operations                     21.6       22.9
Less: costs unrelated to initial customer acquisition (0.9)      (1.9)
Customer acquisition costs                            $  20.7    $ 21.0
Cost per Gross Add                                    $  94      $ 171



Nextel Peru
                                                      Three Months Ended

                                                      March 31,
                                                      2013       2012
                                                      (unaudited)
Handset and accessory revenues                        $  5.8     $ 7.5
Less: cost of handset and accessory sales             16.1       18.0
Handset subsidy costs                                 10.3       10.5
Selling and marketing                                 14.2       14.5
Costs per statement of operations                     24.5       25.0
Less: costs unrelated to initial customer acquisition (2.5)      (2.5)
Customer acquisition costs                            $  22.0    $ 22.5
Cost per Gross Add                                    $  101     $ 160

Net Debt

Net debt represents total debt less cash, cash equivalents, short-term and
long-term investments. 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 provides useful information concerning our liquidity
and leverage. Net debt as of March 31, 2013 can be calculated as follows (in
millions):

NII Holdings, Inc
Total debt                      $ 5,702.2
Add: debt discounts             23.7
Less: cash and cash equivalents 1,884.5
Less: short-term investments    43.9
Net debt                        $ 3,797.5

Impact of Foreign Currency Fluctuations

The following table shows the impact of changes in foreign currency exchange
rates on certain financial measures for the three months ended March 31, 2012
compared to the same period in 2013 by (i) adjusting the relevant measures for
the three months ended March 31, 2012 to levels that would have resulted if
the average foreign currency exchange rates for the three months ended March
31, 2012 were the same as the average foreign currency exchange rates that
were in effect for the three months ended March 31, 2013; and (ii) comparing
the actual and adjusted financial measures for the three months ended March
31, 2012 to the similar financial measures for the three months ended March
31, 2013 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 three months ended March 31, 2013 and 2012.
The average foreign currency exchange rates for each of the relevant
currencies during each of the three months ended March 31, 2013 and 2012 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 three months ended March 31, 2013
compared to the same period in 2012 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 millions)
              Three Months Ended March 31,
                                                                  1Q
                                                                  2012   1Q 2012
                                        
                                                                 to 1Q  to 1Q 2013
              1Q 2012                   1Q 2012      1Q 2013      2013
              Actual       1Q 2012                   Actual              Normalized
                           Adjustment   Normalized                Actual
                           (1)          (1)                       Growth Growth
                                                                         Rate (3)
                                                                  Rate
                                                                  (2)
Consolidated:
Operating     $ 1,633,148  $ (101,369)  $ 1,531,779  $ 1,413,396  (13)%  (8)%
revenues
Adjusted
operating
income before
              354,936      (40,675)     314,261      229,990      (35)%  (27)%

depreciation
and
amortization
Nextel
Brazil:
Operating     $ 824,300    $ (94,062)   $ 730,238    $ 635,872    (23)%  (13)%
revenues
Segment       237,995      (34,150)     203,845      157,643      (34)%  (23)%
earnings
Nextel
Mexico:
Operating     $ 544,462    $ 15,056     $ 559,518    $ 514,014    (6)%   (8)%
revenues
Segment       168,710      5,956        174,666      101,229      (40)%  (42)%
earnings
Nextel
Argentina:
Operating     $ 168,517    $ (22,619)   $ 145,898    $ 167,024    (1)%   14%
revenues
Segment       46,748       (11,584)     35,164       52,341       12%    49%
earnings

(1) The "1Q 2012 Normalized" amounts reflect the impact of applying the
average foreign currency exchange rates for the three months ended March 31,
2013 to the operating revenues earned in foreign currencies and to the other
components of each of the actual financial measures shown above for the three
months ended March 31, 2012, other than certain components of those measures
consisting of U.S. dollar-based operating expenses, which were not adjusted.
The amounts included under the column "1Q 2012 Adjustment" reflect the amount
determined by subtracting the "1Q 2012 Normalized" amounts calculated as
described in the preceding sentence from the "1Q 2012 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 three months
ended March 31, 2012. The average foreign currency exchange rates for each of
the relevant currencies during the three months ended March 31, 2013 and 2012
for purposes of these calculations were as follows:

               Three Months Ended March 31,
               2013              2012
Brazilian real 2.00              1.77
Mexican peso   12.66             13.02
Argentine peso 5.02              4.34

(2) The percentage amounts in this column reflect the growth rate for each
of the financial measures comparing the amounts in the "1Q 2013 Actual" column
with those in the "1Q 2012 Actual" column.

(3) The percentage amounts in this column reflect the growth rate for each
of the financial measures comparing the amounts in the "1Q 2013 Actual" column
with those in the "1Q 2012 Normalized" column.

SOURCE NII Holdings, Inc.

Website: http://www.nii.com
 
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