NII Holdings, Inc. (NIHD) saw its loss widen to $1,419 million, or $14.17 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $189.40 million, or $1.89 a share.
Revenue during the quarter dropped 8.39 percent to $260.80 million from $284.70 million in the previous year period. Gross margin for the quarter expanded 1012 basis points over the previous year period to 60.77 percent.
Operating loss for the quarter was $1,386.70 million, compared with an operating loss of $77.70 million in the previous year period.
"Our results this quarter reflect the continuation of our strategy to focus on balancing our cost structure with our current revenue stream, which has been adversely effected by the decline in our iDEN subscriber base," said Steve Shindler, chief executive officer. "We are continuing to focus on attracting 3G and 4G subscribers that generate healthy levels of ARPU, while investing in retention efforts to address the ongoing pressure on churn resulting from the weak economic conditions in Brazil."
Working capital remains negative
Working capital of NII Holdings, Inc. was negative $227.30 million on Sep. 30, 2016 compared with negative $78.84 million on Sep. 30, 2015. Current ratio was at 0.77 as on Sep. 30, 2016, down from 0.91 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 2 days for the quarter from 48 days for the last year period. Days sales outstanding went up to 69 days for the quarter compared with 66 days for the same period last year.
Days inventory outstanding has decreased to 6 days for the quarter compared with 40 days for the previous year period. At the same time, days payable outstanding went up to 72 days for the quarter from 58 for the same period last year.
Debt comes down marginally
NII Holdings, Inc. has recorded a decline in total debt over the last one year. It stood at $656.80 million as on Sep. 30, 2016, down 2.01 percent or $13.48 million from $670.28 million on Sep. 30, 2015. Total debt was 44.47 percent of total assets as on Sep. 30, 2016, compared with 23.58 percent on Sep. 30, 2015. Debt to equity ratio was at 2.58 as on Sep. 30, 2016, up from 0.41 as on Sep. 30, 2015.
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