NII Holdings Delivers Strong Customer Growth
NII Holdings (NIHD) is a leading provider of mobile communications for business customers in Latin America with main operations in Brazil and Mexico. Its the operations in these two countries plus the plans to deploy 3G services in the near term in these countries that derive the main investing theme.
The stock is up some 7% today on strong results and news that subscribers have passed 9M and expect to approach 11M by the end of 2011. While the numbers were good and guidance for 2011 solid, NIHD remains a emerging market investment and hence the stock performance will largely be derived from how the sector performs and whether Latin America remains a high growth area with soaring inflation.
As far as Q4 results, NIHD seems to right inline with expectations when stripping out a $17M charge relating to prepaid Value Added Taxes. Need to listen to the conference call to see if something was said to warrant the 7% jump. All in all, the company trades at a low valuation with expected revenues of $6.6B next year which should have very little revenue contribution from the two new 3G networks.
The emerging market/Brazil theme remains intact. Expect to continue holding this stock in client and personal accounts until at least the 3G deployment plays out.
Via NIHD PR:
The stock is up some 7% today on strong results and news that subscribers have passed 9M and expect to approach 11M by the end of 2011. While the numbers were good and guidance for 2011 solid, NIHD remains a emerging market investment and hence the stock performance will largely be derived from how the sector performs and whether Latin America remains a high growth area with soaring inflation.
As far as Q4 results, NIHD seems to right inline with expectations when stripping out a $17M charge relating to prepaid Value Added Taxes. Need to listen to the conference call to see if something was said to warrant the 7% jump. All in all, the company trades at a low valuation with expected revenues of $6.6B next year which should have very little revenue contribution from the two new 3G networks.
The emerging market/Brazil theme remains intact. Expect to continue holding this stock in client and personal accounts until at least the 3G deployment plays out.
Via NIHD PR:
- Full year 2010 net subscriber additions of 1,641,000 resulting in an ending subscriber base of 9.0 million - a 22% increase over the subscriber base at the end of 2009. Net subscriber additions of 436,000 in the fourth quarter.
- Full year 2010 consolidated operating revenues of $5.6 billion - a 27% increase over 2009. Consolidated fourth quarter operating revenues of $1.52 billion.
- Full year 2010 consolidated operating income before depreciation and amortization (OIBDA) of $1.43 billion – a 29% increase over 2009. Consolidated fourth quarter OIBDA of $379 million.
Disclosure: Long NIHD. See Disclaimer page.
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