NII Holdings posted a net loss of close to US$2 billion last year and saw its customer base dwindle, although it reported net customer additions in Q4 for the first time in six quarters.
The company, which is operating under Chapter 11 bankruptcy protection, saw its net loss widen to $1.96 billion in 2014. However, its quarterly loss of $514.9 million in the last three months of the year represented an improvement on the $745.8 million loss it recorded in Q4 2013.
NII’s full-year revenues slid 22% to $3.69 billion while fourth quarter revenues were down 20% to $854.2 million.
The firm, which offers mobile services under the Nextel brand in Argentina, Brazil and Mexico, lost a net 61,400 customers last year, leaving it with a base of 9.18 million at the end of December. However, the losses were significantly fewer than the 257,900 it reported the previous year, and in the fourth quarter of the year it recorded positive net subscriber additions for the first time since Q2 2013, adding 129,000 customers.
"Our fourth quarter operational and financial results are beginning to show improvement, although we still fell short of our goals," said Steve Shindler, CEO of NII Holdings, in a statement.
"Our return to subscriber growth for the first time in six quarters reflects a turning point in our business and is a significant step forward in our efforts to return to revenue growth, and ultimately, profitability," he added "Our foc us for 2015 will be to continue to build on this subscriber growth trend and improve our operating performance."
Meanwhile, finance chief Juan Figuereo said the company remains confident it can grow its topline and its customer base going forward.
Earlier this month NII agreed a new restructuring deal with creditors that takes into account its January agreement to sell its Mexican operations to AT&T for $1.88 billion.
"We expect this transaction will improve our liquidity and provide funding to invest in our Brazil business, which we believe provides a significant opportunity to create long-term value for our stakeholders," Figuereo said in the results announcement.
The deal is subject to bankruptcy court approval and requires the green light from regulators in Mexico. NII expects it to close in mid-2015.
