NIHD: Beats Estimates, Will Wait a Quarter Before Updating Guidance
Large Cap Watch List (Track at Marketocracy) member NII Holdings, Inc. (NIHD) reported earnings:
NII Holdings, Inc. (Nasdaq: NIHD) today announced its consolidated financial results for the first quarter of 2007. For the first quarter, the Company added 289,000 net subscribers, a 47% increase compared to net subscriber additions for the same period last year, resulting in an ending subscriber base of over 3.7 million subscribers, an increase of 1 million subscribers over the 2.7 million base reported at the end of the first quarter 2006. Financial results for the first quarter of 2007 included record consolidated operating revenues of $714 million, a 35% increase over the same period last year. The Company reported record consolidated operating income before depreciation and amortization, or OIBDA, for the first quarter of $208 million, a 36% increase over the same period last year. The Company’s reported OIBDA includes approximately $9 million of non-cash stock option compensation expense as required by SFAS 123R, compared to $5 million of non-cash stock option compensation expense for the same period in 2006. The Company also reported consolidated operating income of $141 million, a 26% increase over the prior year period, and generated net income of $84 million, or $0.52 per basic share, for the first quarter.
Analysts were expecting the company to earn $0.48 per share on $700 million in revenues. Operating metrics were very strong: $58 in average revenue per user (ARPU) and just 1.6% in annualized churn. Despite the positive performance, however, management has maintained its guidance for full-year earnings and revenue but promised an update after the second quarter results if appropriate.
The current consensus estimate for the full year is $2.29 in EPS on $3.16 billion in revenue.
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