Aggressive expansion and low churn rates boost revenues and profits for NII in Latin America.
BY CHRONICLE STAFF
US-based NII Holdings, which owns wireless operators in Mexico and South America, boosted its consolidated operating revenues by 41 percent in the second quarter to $786 million. Meanwhile, consolidated operating income grew by 20 percent to $134 million.
“Our strong performance for the first half of the year...confirms both the value of our market expansion in Mexico and Brazil over the past two years and the strength of the economies in our markets,” NII Chairman and CEO Steve Shindler said in a statement.
The growth was largely spurred by a dramatic - 51 percent - increase in net subscribers. NII now boasts a total of 4.1 million subscribers in Latin America, or 331,000 more than the second quarter last year.
NII expanded its services to 20 new cities in Latin America during the second quarter and is planning additional launches in Brazil as well as boosting capacity in Chile, according to Shindler. In addition to expanding to new markets, NII can boast one of the lowest churn rates in Latin America. (See Wireless: Latin Churn Remains High). Although NIIs consolidated churn was 1.6 percent in the second quarter...