Boston, MA 05/03/2013 (wallstreetpr) – The Nextel-brand service provider in Latin America, NII Holdings, Inc (NASDAQ:NIHD) (Closed: $7.44, Down by 10.68%) climbed 11 percent after it added users. The company also moved Steve Shindler, the interim Chief Executive Officer into a permanent CEO position. Last quarter, NII added 152,000 subscribers to its existing network. In a statement, the Reston, Virginia-based company said that this increased its subscriber-base to 11.5 million which was a rise of 5 percent. Its adjusted earnings prior to taxes, interest, amortization and depreciation were $230 million. This topped analyst estimates of $192 million.
Two positive developments
Through yesterday, the company stock had risen by 17 percent. Shindler’s permanent appointment as Chief Executive officer is an additional good news. He is familiar with the workings of the company and had served as its CEO from 2000-2008. That exposure would be useful to him in confronting the challenges that NII is currently facing. The wireless carrier has been struggling to keep in step with its larger rivals such as Telefonica S.A. (NYSE:TEF) (Closed: $14.56, Up by 0.21%) and America Movil SAB. It is counting on the current third-generation networks to gain more customers.
An experienced hand
Shindler had been instrumental in overseeing earlier successful transitions for NII and his resuming in the CEO seat is a positive development and will prove to be beneficial for the company. Shindler had been serving as chairman for the company. In a statement, NII said that it is now considering breaking up these two roles. Despite the fact that there has been an improvement in Ebitda figures, NII is still posting net losses. These include $1.21 per share or $207.5 million in the first-quarter. The sales had also dropped from $1.63 billion to $1.41 billion.
A prominent analyst said that there are still chances of a turnaround, specifically in Brazil. This particular region has always proved to be a challenge-zone for the NII. The company had seen its very first subscriber growth in this country in the 2012 second-quarter. The quarter one results are a fair indication of the fact that NII has set the comeback gears in motion and it seems like NII is finally on a path to recovery.
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