NII Plummets as Revenue Forecast Falls Short of EstimatesCrayton Harrison
NII Holdings Inc., which sells mobile-phone service in Latin America under the Nextel brand, dropped the most in almost three months after forecasting 2013 sales that fall short of analysts’ estimates.
Revenue will reach $5.7 billion to $5.9 billion this year, Reston, Virginia-based NII said in a statement. That compares with the $6.1 billion average estimate of 13 analysts polled by Bloomberg.
NII is struggling to hold on to subscribers as it converts its network to newer technology to better compete with America Movil SAB and Telefonica SA. The Nextel carrier said its customer base expanded 6 percent in 2012 for a total of 11.4 million, The number will expand this year by a “mid-single digit” percentage, NII said.
NII fell 8.6 percent to $5.83 at the close in New York, the largest decline since Nov. 13. The shares have dropped 18 percent this year, compared to a 6.2 percent gain for the Russell 1,000 Index.
The company also announced plans to sell $400 million in bonds due 2019, saying it would use the funding for purposes including network upgrades, acquisitions, capital investments or refinancing.