NII Holdings Reports First Quarter 2019 Results

RESTON, Va., May 10, 2019 /PRNewswire/ -- NII Holdings, Inc. [NASDAQ: NIHD] today announced its financial results for the first quarter of 2019. For the quarter, the Company generated consolidated operating revenues of $147 million, consolidated operating income of $1 million and consolidated adjusted OIBDA of $19 million. The Company's consolidated adjusted OIBDA excludes the impact of non-cash asset impairments, restructuring charges and other unusual items. Capital expenditures were $7 million for the quarter.

For the first quarter of 2019, Nextel Brazil reported 3G/4G net subscriber additions of 132,100 and 3G/4G churn of 2.35%, a 27-basis point decrease compared to the fourth quarter of 2018 and essentially flat compared to the same period in 2018. Additionally, for the first quarter of 2019, Nextel Brazil's average monthly service revenue per subscriber (ARPU) was $14, cost per gross addition (CPGA) was $56 and cash cost per user (CCPU) was $10.

"We had a solid start to the year, generating 132 thousand net adds as we continued to expand our large retail sales channel and benefited from seasonality that positively impacted churn," stated Roberto Rittes, Chief Executive Officer of Nextel Brazil. "In spite of the pending sale of Nextel Brazil, we are maintaining our operating strategy and running our business in the ordinary course while continuing to remain disciplined about spending, including further efforts to reduce costs."

At year-end, Nextel Brazil's sources of funding totaled $226 million, including $120 million of unrestricted cash and short-term investments and $106 million of cash held in escrow to secure indemnification obligations in connection with the sale of the Company's operations in Mexico.

"We are focused on maximizing our liquidity while we wait for the proposed sale of Nextel Brazil to close," stated Dan Freiman, Chief Financial Officer of NII. "Outside of the first annual installment of principal and interest due under our license financing in July, we expect cash burn in future quarters to decline from the level incurred this quarter."

As previously announced, the Company has been waiting on a decision on a lawsuit related to the overpayment of certain taxes in Brazil in prior years. In April 2019, Nextel Brazil was notified by court order that it was awarded credits for its past PIS and COFINS tax overpayments, plus interest, totaling approximately 783 million Brazilian reais, or about $200 million based on foreign currency exchange rates in effect at the time. Nextel Brazil has five years to utilize these credits. Under the terms of the purchase agreement with América Móvil, Nextel Brazil may not use these PIS and COFINS tax credits prior to closing the transaction, except for specific purposes at the request of América Móvil. In addition, prior to utilizing these credits, Nextel Brazil is required to obtain authorization from the Brazilian tax authorities, which has not yet been completed. During the first quarter of 2019, the Company recognized an $11 million net benefit related to these credits, which positively impacted the Company's adjusted OIBDA.

On January 1, 2019, the Company implemented Accounting Standards Codification No. 842, "Leases," which resulted in the recognition of about $436 million in new lease liabilities, as well as a $2 million benefit to the Company's adjusted OIBDA.

Additional details regarding the Company's results, including a more detailed explanation on local currency operating metrics, are included in the Company's Quarterly Report on Form 10-Q for the three months ended March 31, 2019 filed with the Securities and Exchange Commission today. Additional operational and financial details, including a quarterly earnings presentation, are also available under the Company's Investor Relations link at www.nii.com.

In addition to the financial results prepared in accordance with accounting principles generally accepted in the United States (GAAP) provided throughout this press release and in the attached financial tables, NII Holdings has presented consolidated adjusted OIBDA, as well as Nextel Brazil's CCPU and CPGA. These measures are non-GAAP financial measures and should be considered in addition to, but not as substitutes for, the information prepared in accordance with GAAP. Reconciliations from GAAP results to these non-GAAP financial measures are provided in the notes to the attached financial tables. To view these and other reconciliations of non-GAAP financial measures that the Company uses, visit the investor relations link at www.nii.com.

About NII Holdings, Inc.

NII Holdings, Inc., a publicly held company based in Reston, Virginia, is a provider of mobile communication services for individual consumers who use our services to meet both professional and personal needs in Brazil. NII Holdings, operating under the Nextel brand, offers fully integrated wireless communication tools with digital cellular voice services, data services, international voice and data roaming services and other value-added services. Visit NII Holdings' website at www.nii.com.

Visit NII Holdings' news room for news and to access our market's news center: nii.com/newsroom.

Safe Harbor Statement

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. This news release includes "forward-looking statements" within the meaning of the securities laws. The statements in this news release regarding the expected completion, timing and effects of our proposed sale of Nextel Brazil and potential distributions to our stockholders upon liquidation and dissolution, as well as our business and economic outlook, future performance and guidance, as well as other statements that are not historical facts, are forward-looking statements. Forward-looking statements are estimates and projections reflecting management's judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. With respect to these forward-looking statements, management has made assumptions regarding, among other things, the proposed sale of Nextel Brazil; the effects and timing of the proposed transaction; our existing and future costs, expenses, claims and other liabilities, and the impact of these matters on our liquidation and dissolution; the Company's ability to fund the business and meet its business plans; customer growth and retention; pricing; network usage; operating costs; the timing of various events; Access Industries' minority ownership in Nextel Brazil; the economic and regulatory environment; and the foreign currency exchange rates that will prevail in 2019. Future performance cannot be assured and actual results may differ materially from those in the forward-looking statements. Some factors that could cause actual results to differ include the risks and uncertainties relating to: the proposed sale of Nextel Brazil, including approval by our stockholders; the occurrence of any event, change or other circumstance that could give rise to the termination of the purchase agreement; the amount of the costs, fees, expenses and charges related to the sale of Nextel Brazil, or the impact of any adjustments to the purchase price; changes in foreign currency exchange rates; the effect the pending sale of Nextel Brazil has on our management team, customer relationships, operating results and business generally, including the ability to retain key employees; the cost and outcome of any legal proceedings that may be instituted against us and others following the announcement of the sale of Nextel Brazil; the timing and amount of cash and other assets available for distribution to our stockholders upon our dissolution and winding up; the impact of liquidity constraints, including the inability to access escrowed funds when expected; the impact of more intense competitive conditions and changes in economic conditions in Brazil; the performance of the Company's network; the Company's ability to provide services that customers want or need; the Company's ability to execute its business plan; and the additional risks and uncertainties that are described in NII Holdings' Annual Report on Form 10-K for the year ended December 31, 2018, as well as in other reports filed from time to time by NII Holdings with the Securities and Exchange Commission. This press release speaks only as of its date, and the Company disclaims any duty to update the information herein.

                              
            
              NII HOLDINGS, INC. AND SUBSIDIARIES

                             
            
              CONSOLIDATED STATEMENTS OF OPERATIONS

                       
            
              FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018

                            
            
              (in millions, except per share amounts)




                                                                                   Three Months Ended
                                                                        
              March 31,


                                                            2019                                      2018 (1)





     
              Operating revenues


        Service and other revenues                                  $
            146.0                              $
       176.2


        Handset and accessory revenues                       0.8                                           5.0


                                                           146.8                                         181.2


                 Operating expenses                         61.4                                          84.5

        Cost of service (exclusive of depreciation and
         amortization 
            included below)


        Cost of handsets and accessories                     5.1                                           9.1


        Selling, general and
         administrative                                     65.3                                          90.9


        Impairment, restructuring and
         other charges, net                                  5.8                                           2.3



       Depreciation                                         5.0                                           4.1



       Amortization                                         3.3                                           3.6


                                                           145.9                                         194.5


                 Operating income (loss)                     0.9                                        (13.3)


                 Other (expense) income                   (29.3)                                       (26.6)


       Interest expense, net



       Interest income                                      3.7                                           5.4


        Foreign currency transaction
         losses, net                                       (1.6)                                        (1.2)


        Other income (expense), net                         28.1                                         (6.3)


                                                             0.9                                        (28.7)


                 Income (loss) from continuing
                  operations before income taxes             1.8                                        (42.0)



     
              Income taxes                                  -


                 Net income (loss) from continuing
                  operations                                 1.8                                        (42.0)


                 Net loss from discontinued
                  operations, net of income taxes          (2.7)                                        (0.1)





     
              Net loss                                  (0.9)                                       (42.1)


                 Net loss attributable to
                  noncontrolling interest                  (5.8)                                       (11.2)


                 Net income (loss) attributable to
                  NII Holdings                                        $
            4.9                             $
       (30.9)




                 Net income (loss) from continuing
                  operations per common share,
                  basic and diluted                                  $
            0.02                             $
       (0.42)


                 Net loss from discontinued
                  operations per common share,
                  basic and diluted                       (0.03)


                 Net loss per common share, basic
                  and diluted                                      $
            (0.01)                            $
       (0.42)




                 Weighted average number of common
                  shares outstanding, basic                101.4                                         100.4


                 Weighted average number of common
                  shares outstanding, diluted              103.2                                         100.4

                                                                                                          ===


              
                (1)              2018 amounts include the
                                               impact of the revision of
                                               certain immaterial errors.
                                               For more information, see our
                                               Quarterly Report on Form 10-Q
                                               for the three months ended
                                               March 31, 2019.

                                                  
           
          CONSOLIDATED BALANCE SHEETS

                                                
           
          (in millions, except par values)




                                                                        March 31,                       December 31,
                                                                             2019                                2018




                                                          
        
                ASSETS



     
                Current assets


      Cash and cash equivalents                                                        $
              94.6                 $
        142.5



     Short-term investments                                                 25.3                                32.3


      Accounts receivable, net of
       allowance for doubtful accounts
       of $24.2 and $19.6                                                   104.6                                99.9


      Handset and accessory inventory                                         1.5                                 1.9


      Prepaid expenses and other                                            249.6                               245.9



     Total current assets                                                  475.6                               522.5


                   Property, plant and equipment, net                       147.4                               143.9


                   Intangible assets, net                                   158.9                               162.2


                   Operating lease right-of-use
                    assets                                                  359.7


                   Other assets                                             240.7                               231.2



     Total assets                                                                  $
              1,382.3               $
        1,059.8


                                             
            
         LIABILITIES AND STOCKHOLDERS' DEFICIT



     
                Current liabilities



     Accounts payable                                                                 $
              34.5                  $
        39.1


      Accrued expenses and other                                            288.3                               299.0


      Operating lease liabilities                                            48.2


      Current portion of long-term debt                                      22.9                                21.4


      Total current liabilities                                             393.9                               359.5


                   Long-term debt                                           622.8                               632.8


                   Long-term operating lease
                    liabilities                                             373.5


                   Other long-term liabilities                              192.8                               249.1



     Total liabilities                                                   1,583.0                             1,241.4



     
                Stockholders' deficit


      Common stock, par value $0.001,
       140.0 shares authorized, 101.6
       shares issued and                                                      0.1                                 0.1
        outstanding -2019, 101.3 shares issued and
         outstanding -2018



     Paid-in capital                                                     2,143.5                             2,143.2



     Accumulated deficit                                               (2,245.9)                          (2,236.9)


      Accumulated other comprehensive
       loss                                                                 (7.6)                              (8.4)


      Total stockholders' deficit                                         (109.9)                            (102.0)



     Noncontrolling interest                                              (90.8)                             (79.6)



     Total deficit                                                       (200.7)                            (181.6)


      Total liabilities and
       stockholders' deficit                                                        $
              1,382.3               $
        1,059.8

                                                                                                                               ===

                            
       
               CONSOLIDATED CASH FLOW DATA

                              
            
               (in millions)




                                                          Three Months Ended March
                                                                      31,


                                  2019                                             2018 (1)




             Cash, cash
              equivalents
              and
              restricted
              cash,
              beginning of
              period                     $
             250.7                                   $
     305.8


             Net cash used
              in operating
              activities        (37.4)                                              (44.7)


             Net cash used
              in investing
              activities         (8.0)                                               (6.2)


             Net cash used
              in financing
              activities         (2.2)                                               (6.7)


             Effect of
              exchange rate
              changes on
              cash, cash
              equivalents
              and                    -                                                 0.7
     restricted cash


             Cash, cash
              equivalents
              and
              restricted
              cash, end of
              period                     $
             203.1                                   $
     248.9

                                                                                                ===


              
                (1)              2018 amounts include the
                                               impact of the revision of
                                               certain immaterial errors.
                                               For more information, see our
                                               Quarterly Report on Form 10-Q
                                               for the three months ended
                                               March 31, 2019.

                                                   
              
                NII HOLDINGS, INC. AND SUBSIDIARIES

                                                      
              
                OPERATING RESULTS AND METRICS

                                          
              
                FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018 (1)

                                                               
              
                (UNAUDITED)




                                                       
              
                
                  Nextel Brazil


                                
              
                (dollars in millions, except ARPU and CPGA, and subscribers in thousands)




                                                                                Three Months Ended
                                                          
                March 31,


                                                            2019                                                2018 (2)


        Service and other
         revenues                                                  $
              146.0                                                  $
        176.2




        Handset and
         accessory revenues                                  0.8                                                     5.0


        Cost of handsets and
         accessories                                       (5.1)                                                  (9.1)


        Handset and
         accessory net
         subsidy                                           (4.3)                                                  (4.1)


        Cost of service
         (exclusive of
         depreciation and
         amortization)                                    (61.4)                                                 (84.5)


        Selling, general and
         administrative                                   (57.2)                                                 (86.6)


                     Adjusted operating
                      income before
                      depreciation and
                      amortization                                  $
              23.1                                                    $
        1.0




                                    Subscriber units

    ---


       WCDMA                                            3,438.1                                                 3,023.8



       iDEN                                                                                                      230.4


                        Total subscriber
                         units in commercial
                         service (as of
                         March 31)                       3,438.1                                                 3,254.2




        WCDMA net subscriber
         additions                                         132.1                                                    92.9


        iDEN net subscriber
         losses                                                                                                  (84.4)


                        Total net subscriber
                         additions                         132.1                                                     8.5




                     Migrations from iDEN
                      to WCDMA                                                                                     34.8




        WCDMA subscriber                                    2.35                                                                 2.37
         churn                                                 %                                                                   %


        iDEN subscriber                                                                                                         9.67
         churn                                                                                                                     %


                        Churn (%)                          2.35                                                                 3.02
                                                               %                                                                   %




                     ARPU (1)                                         $
              14                                                     $
        17




                     CPGA (1)                                         $
              56                                                     $
        77




                     CCPU (1)                                         $
              10                                                     $
        16

    ---





              
                NM - Not Meaningful




       
              
                (1)              For information
                                                  regarding
                                                  ARPU, CPGA and
                                                  CCPU, see
                                                  "Non-GAAP
                                                  Reconciliations
                                                  for the Three
                                                  Months Ended
                                                  March 31, 2019
                                                  and  2018"
                                                  included in
                                                  this release.


       
              
                (2)              2018 amounts
                                                  include the
                                                  impact of the
                                                  revision of
                                                  certain
                                                  immaterial
                                                  errors. For
                                                  more
                                                  information,
                                                  see our
                                                  Quarterly
                                                  Report on Form
                                                  10-Q for the
                                                  three months
                                                  ended March
                                                  31, 2019.

NON-GAAP RECONCILIATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018
(UNAUDITED)

Consolidated OIBDA and Consolidated Adjusted OIBDA

Consolidated operating income before depreciation and amortization, or OIBDA, represents operating income before depreciation and amortization expense. Consolidated adjusted operating income before depreciation and amortization, or adjusted OIBDA, represents consolidated operating income before depreciation expense, amortization expense, material asset impairments, severance costs associated with publicly announced restructuring plans and other material non-recurring or unusual charges. Consolidated OIBDA and consolidated adjusted OIBDA are not measurements under accounting principles generally accepted in the United States, may not be similar to consolidated OIBDA and consolidated adjusted OIBDA measures of other companies and should be considered in addition to, but not as substitutes for, the information contained in our statements of operations. We believe that consolidated OIBDA and consolidated adjusted OIBDA provide useful information to investors because they are indicators of our ongoing operating performance, especially in a capital intensive industry such as ours, since they exclude items that are not directly attributable to ongoing business operations. Consolidated OIBDA and consolidated adjusted OIBDA can be reconciled to our consolidated statements of operations as follows (in millions):

                         
            
                
                  NII Holdings, Inc.




                                              Three Months Ended
                           
              March 31,


                             2019                                              2018 (1)


     Consolidated
      operating income
      (loss)                        $
              0.9                                     $
      (13.3)


     Consolidated
      depreciation            5.0                                                   4.1


     Consolidated
      amortization            3.3                                                   3.6


     Consolidated
      operating income
      (loss) before
      depreciation and
      amortization            9.2                                                 (5.6)


     Asset impairment
      charges                 0.7                                                   0.7


     Restructuring
      charges                 5.1                                                   1.6


     Sale-related
      transaction costs       3.9


     Consolidated
      adjusted operating
      income (loss)
      before
      depreciation and
      amortization                 $
              18.9                                      $
      (3.3)




              
                (1)              2018 amounts include the
                                               impact of the revision of
                                               certain immaterial errors.
                                               For more information, see our
                                               Quarterly Report on Form 10-Q
                                               for the three months ended
                                               March 31, 2019.

Cost per Gross Add (CPGA)

Cost per gross add, or CPGA, is an industry term that is calculated by dividing our selling, marketing and handset and accessory subsidy costs, excluding costs unrelated to initial customer acquisition, by our new subscribers during the period, or gross adds. CPGA is not a measurement under accounting principles generally accepted in the United States, may not be similar to CPGA measures of other companies and should be considered in addition, but not as a substitute for, the information contained in our statements of operations. We believe CPGA is a measure of the relative cost of customer acquisition. CPGA can be calculated as follows (in millions, except CPGA):

                             
         
              
                  Nextel Brazil




                                                Three Months Ended
                                    March 31,


                                2019                                       2018 (1)


                                           
            
                US$


     Handset and
      accessory
      revenues                          $
            0.8                                $
       5.0


     Less: cost
      of
      handsets
      and
      accessories                5.1                                            9.1


         Handset
          subsidy
          costs                  4.3                                            4.1


     Selling and
      marketing                 18.2                                           21.2


     Costs per
      statement
      of
      operations                22.5                                           25.3


     Less: costs
      unrelated
      to initial
      customer
      acquisition              (1.6)                                         (1.9)


         Customer
          acquisition
          costs                        $
            20.9                               $
       23.4




                  Cost per
                   Gross Add             $
            56                                 $
       77



                             
         
              
                  Nextel Brazil




                                                Three Months Ended
                                    March 31,


                                2019                                       2018 (1)


                                                               BRL R$


     Handset and
      accessory
      revenues                          $
            3.0                               $
      16.2


     Less: cost
      of handsets
      and
      accessories               19.2                                           29.4


         Handset
          subsidy
          costs                 16.2                                           13.2


     Selling and
      marketing                 68.5                                           69.0


     Costs per
      statement
      of
      operations                84.7                                           82.2


     Less: costs
      unrelated
      to initial
      customer
      acquisition              (6.1)                                         (6.3)


         Customer
          acquisition
          costs                        $
            78.6                               $
      75.9




                  Cost per
                   Gross Add            $
            212                                $
      250




              
                (1)              2018 amounts include the
                                               impact of the revision of
                                               certain immaterial errors.
                                               For more information, see our
                                               Quarterly Report on Form 10-Q
                                               for the three months ended
                                               March 31, 2019.

Cash Cost per Handset/User

Cash cost per handset/unit, or CCPU, represents the sum of cost of service, general and administrative expenses and customer retention and other costs divided by average handsets in service during the period and divided by the number of months in the period. CCPU is not a measurement under accounting principles generally accepted in the United States, may not be similar to CCPU measures of other companies and should be considered in addition to, but not as a substitute for, the information contained in our statements of operations. We believe CCPU is a measure of the recurring costs we incur on a monthly basis to provide service to our subscribers. The CCPU calculation excludes material asset impairments, severance costs associated with publicly announced restructuring plans and other material non-recurring or unusual charges and is calculated as follows (in thousands, except CCPU):

                        
        
             
               Nextel Brazil




                                               Three Months Ended March
                                                           31,


                            2019                                        2018 (1)


                                     
          
                US$


     Total
      selling,
      general
      and
      administrative
      expenses                    $
          57.2                                    $
        86.6


     Less:
      selling
      and
      marketing
      expenses            (18.2)                                         (21.2)


      General
      and
      administrative
      expenses              39.0                                            65.4


     Cost
      of
      service               61.4                                            84.5


      Customer
      retention
      costs
      and
      other                  1.6                                             1.9


     Total                       $
          102.0                                   $
        151.8




                  Cash
                   Cost
                   per
                   User             $
          10                                      $
        16



                        
        
             
               Nextel Brazil




                                               Three Months Ended March
                                                           31,


                            2019                                        2018 (1)


                                    
          
                BRL R$


     Total
      selling,
      general
      and
      administrative
      expenses                   $
          214.8                                   $
        281.0


     Less:
      selling
      and
      marketing
      expenses            (68.5)                                         (69.0)


      General
      and
      administrative
      expenses             146.3                                           212.0


     Cost
      of
      service              231.0                                           274.0


      Customer
      retention
      costs
      and
      other                  6.1                                             6.3


     Total                       $
          383.4                                   $
        492.3




                  Cash
                   Cost
                   per
                   User             $
          38                                      $
        51




              
                (1)              2018 amounts include the
                                               impact of the revision of
                                               certain immaterial errors.
                                               For more information, see our
                                               Quarterly Report on Form 10-Q
                                               for the three months ended
                                               March 31, 2019.

Impact of Foreign Currency Fluctuations

The following table shows the impact of changes in foreign currency exchange rates on certain financial measures for the three months ended March 31, 2018 compared to the same period in 2019 by (i) adjusting the relevant measures for the three months ended March 31, 2018 to levels that would have resulted if the average foreign currency exchange rates for the three months ended March 31, 2018 were the same as the average foreign currency exchange rates that were in effect for the three months ended March 31, 2019; and (ii) comparing the actual and adjusted financial measures for the three months ended March 31, 2018 to the similar financial measures for the three months ended March 31, 2019 to show the percentage change in those measures before and after taking those adjustments into account. The amounts reflected in the following table for operating income before depreciation and amortization on a consolidated basis and segment earnings for Nextel Brazil, before the adjustments for changes in foreign currency exchange rates, are based on the calculations contained elsewhere in these non-GAAP reconciliations for the three months ended March 31, 2019 and 2018. The average foreign currency exchange rates for each of the relevant currencies during each of the three months ended March 31, 2019 and 2018 are included in the notes to the table below. The information reflected in the following table is not a measurement under accounting principles generally accepted in the United States and should be considered in addition to, but not as a substitute for, the information contained in our statements of operations. We believe that these calculations provide useful information concerning our relative performance for the three months ended March 31, 2019 compared to the same period in 2018 by removing the impact of the significant difference in the average foreign currency exchange rates in effect for those periods.

                                                                                    
            
                
                  NII Holdings, Inc.


                                                                                        
              
                (dollars in thousands)




                                                                 
              
             Three Months Ended March 31,


                                                    1Q 2018                1Q 2018                        1Q 2018                                  1Q 2019                   1Q 2018  
         
              1Q 2018
                                           Actual *         Adjustment (1)                 Normalized (1)                                   Actual                    to 1Q 2019
                                                                                                                                                                
         Actual                         to 1Q 2019
                                                                                                                                                                    B(W) Growth
                                                                                                                                                                                (2)                   Normalized

                                                                                                                                                                                                     B(W) Growth
                                                                                                                                                                                                           (3)





              
                Consolidated:


                 Operating revenues                            $
              181,241                                   $
              (25,319)                    $
       155,922                         $
              146,815 (19)% (6)%


                 Adjusted operating
                  (loss)                            (3,217)                  (146)                        (3,363)                                   18,933                       NM     
         
                NM
        income before depreciation
        and amortization



              
                Nextel Brazil:


                 Operating revenues                            $
              181,220                                   $
              (25,319)                    $
       155,901                         $
              146,815 (19)% (6)%


                 Adjusted OIBDA                       1,045                   (146)                            899                                    23,109                       NM     
         
                NM

    ---



                            NM-Not Meaningful




                            * 2018 amounts include the
                             impact of the revision of
                             certain immaterial errors. For
                             more information, see our
                             Quarterly Report on Form 10-Q
                             for the three months ended
                             March 31, 2019.




               (1) The "1Q 2018 Normalized"
                amounts reflect the impact of
                applying the average foreign
                currency exchange rates for
                the three months ended March
                31, 2019 to the operating
                revenues earned in foreign
                currencies and to the other
                components of each of the
                actual financial measures
                shown above for the three
                months ended March 31, 2018,
                other than certain components
                of those measures consisting
                of U.S. dollar-based
                operating expenses, which were
                not adjusted. The amounts
                included under the columns "1Q
                2018 Normalized" reflect the
                amount determined by adding
                the "1Q 2018 Adjustment"
                amounts calculated as
                described in the preceding
                sentence to the "1Q 2018
                Actual" amounts and reflect
                the impact of the year-over-
                year change in the average
                foreign currency exchange
                rates on each of the financial
                measures for the three months
                ended March 31, 2019. The
                average foreign currency
                exchange rates for each of the
                relevant currencies during the
                three months ended March 31,
                2019 and 2018 for purposes of
                these calculations were as
                follows:

                                                         Three Months
                                                          Ended March 31,


                                   2019                2018


               Brazilian real      3.77                3.24


              (2)              The percentage amounts in these
                                  columns reflect the better, or
                                  B, or worse, or W, growth
                                  rates for each of the
                                  financial measures comparing
                                  the amounts in the "1Q 2019
                                  Actual" columns with those in
                                  the "1Q 2018 Actual" columns.





              (3)              The percentage amounts in these
                                  columns reflect the  the
                                  better, or B, or worse, or W,
                                  growth rates for each of the
                                  financial measures comparing
                                  the amounts in the "1Q 2019
                                  Actual" columns with those in
                                  the "1Q 2018 Normalized"
                                  columns.

Additional Information

Average Monthly Revenue Per Handset/Unit in Service (ARPU)

Average monthly revenue per subscriber unit in service, or ARPU, is an industry term that measures service revenues, which we refer to as subscriber revenues, per period from our customers divided by the weighted average number of subscriber units in commercial service during that period. ARPU is not a measurement under accounting principles generally accepted in the United States, may not be similar to ARPU measures of other companies and should be considered in addition, but not as a substitute for, the information contained in our statements of operations. We believe that ARPU provides useful information concerning the appeal of our rate plans and service offerings and our performance in attracting and retaining high value customers. Other revenue includes revenues for such services as roaming, handset maintenance, cancellation fees, analog and other. ARPU can be calculated as follows (in millions, except ARPU):

                                    
      
              
             Nextel Brazil




                                                             Three Months Ended
                                                    
           March 31,


                                        2019                                    2018 (1)


                                                 
           
              US$


     Service and other revenues              $
           146.0                              $
        176.2


     Less: other revenues              (2.9)                                      (6.4)


     Total subscriber revenues               $
           143.1                              $
        169.8






                  ARPU calculated with
                   subscriber revenues          $
           14                                 $
        17




                  ARPU calculated with
                   service and other
                   revenues                     $
           15                                 $
        18



                                    
       
              
             Nextel Brazil




                                                              Three Months Ended
                                                     
           March 31,


                                         2019                                    2018 (1)


                                                 
           
              BRL R$


     Service and other revenues               $
           550.5                              $
        571.2


     Less: other revenues              (10.9)                                     (20.6)


     Total subscriber revenues                $
           539.6                              $
        550.6






                  ARPU calculated with
                   subscriber revenues           $
           53                                 $
        57




                  ARPU calculated with
                   service and other
                   revenues                      $
           54                                 $
        59




              
                (1)              2018 amounts include the
                                               impact of the revision of
                                               certain immaterial errors.
                                               For more information, see our
                                               Quarterly Report on Form 10-Q
                                               for the year ended March 31,
                                               2019.

View original content:http://www.prnewswire.com/news-releases/nii-holdings-reports-first-quarter-2019-results-300848169.html

SOURCE NII Holdings, Inc.