NII Holdings, telecom service provider operating under the Nextel brand in Brazil, Mexico, Argentina and Chile, will lower its Capex (capital spending) in 2014 to $600 million and $700 million from $883 million in 2013.
The primary objective of its Capex plan will be to grow its subscriber base. NII Holdings reported 2 percent dip in subscriber base or a net loss of 213,000 subscriber base to 9.5 million in 2013.
NII Holdings operating revenues decreased 17 percent to $4.8 billion in 2013. Its net loss from continuing operations was $1.6 billion.
Reflecting the fall in revenue, NII Holdings’ consolidated average monthly service revenue per subscriber (ARPU) dipped to $34 in 2013 from $42 in the prior year. Average monthly churn increased 61 points to 3.1 percent.
To turnaround the business, NII Holdings sold towers in Brazil and Mexico and initiated the sale of its Peru market last year. In 2014, the telecoms will continue to pursue other strategies to improve its liquidity, including strategic opportunities around Chile and Argentina.
“We are clearly disappointed with our operational performance in 2013, and we are taking actions to improve our business results, including the launch of Project Accelerate, a program designed to build the foundation for growth as we use our 3G networks to drive operational improvements in 2014,” said Steve Shindler, chief executive officer of NII Holdings.
