NII Holdings, Inc. (NIHD) saw its loss widen to $92.70 million, or $0.92 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $36.60 million, or $0.37 a share.
Revenue during the quarter grew 10.82 percent to $251 million from $226.50 million in the previous year period. Gross margin for the quarter expanded 30 basis points over the previous year period to 55.62 percent. Operating margin for the quarter stood at negative 31.79 percent as compared to a negative 23.89 percent for the previous year period.
Operating loss for the quarter was $79.80 million, compared with an operating loss of $54.10 million in the previous year period.
"We had solid results to start off the year," said Steve Shindler, NII's chief executive officer. "We reported our fifth consecutive quarter of positive adjusted OIBDA in Brazil and our second consecutive quarter of more than 35,000 3G net subscriber additions, resulting from a continued reduction in churn. We had a slight drop in ARPU compared to last quarter primarily due to increased customer credits, which we expect to continue to offer as a retention tool."
Operating cash flow remains negative
NII Holdings, Inc. has spent $45.30 million cash to meet operating activities during the quarter as against cash outgo of $18.20 million in the last year period.
Cash flow from investing activities was $32 million for the quarter, down 5.04 percent or $1.70 million, when compared with the last year period.
The company has spent $43.10 million cash to carry out financing activities during the quarter as against cash outgo of $24.70 million in the last year period.
Cash and cash equivalents stood at $200.80 million as on Mar. 31, 2017, down 39.64 percent or $131.89 million from $332.69 million on Mar. 31, 2016.
Working capital remains negative
Working capital of NII Holdings, Inc. was negative $153.40 million on Mar. 31, 2017 compared with negative $234.03 million on Mar. 31, 2016. Current ratio was at 0.81 as on Mar. 31, 2017, up from 0.75 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 15 days for the quarter from 35 days for the last year period. Days sales outstanding went down to 55 days for the quarter compared with 60 days for the same period last year.
Days inventory outstanding has decreased to 3 days for the quarter compared with 19 days for the previous year period. At the same time, days payable outstanding went down to 42 days for the quarter from 45 for the same period last year.
Debt moves up
NII Holdings, Inc. has witnessed an increase in total debt over the last one year. It stood at $725.10 million as on Mar. 31, 2017, up 7.95 percent or $53.37 million from $671.73 million on Mar. 31, 2016. Total debt was 56.83 percent of total assets as on Mar. 31, 2017, compared with 24.84 percent on Mar. 31, 2016. Debt to equity ratio was at 10.77 as on Mar. 31, 2017, up from 0.42 as on Mar. 31, 2016.
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