NII Plunges as Third-Quarter Loss Widens More Than Estimated
NII Holdings Inc. (NIHD) , the Latin America mobile-phone carrier that offers service under the Nextel brand, fell the most in almost two months after posting a wider loss than analysts had estimated.
The shares plunged 6.7 percent to $6.60 at the close in New York, the biggest decline since Sept. 10. The stock has lost 69 percent of its value this year.
NII’s average revenue per user dropped almost $12 to $37 last quarter, hurt by price competition and weaker local currency exchange rates. The company also has been trying to cut less-lucrative subscribers from its customer rolls in Brazil, leading to higher churn in the short term.
The net loss widened to $82.4 million, or 48 cents a share, compared with a break-even quarter a year earlier, the Reston, Virginia-based company said today in a statement. Analysts had estimated a loss of 28 cents on average, according to data compiled by Bloomberg. Sales fell 15 percent to $1.42 billion, missing the $1.49 billion projected by analysts.
“I’m disappointed,” Chief Executive Officer Steve Dussek said on a conference call. “Our current performance is not acceptable.”
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