NII Holdings, Inc. [NASDAQ: NIHD] today announced its financial results for the second quarter of 2018. For the quarter, the Company generated consolidated operating revenues of $156 million, a consolidated operating loss of $20 million and break-even consolidated adjusted OIBDA. The Company's consolidated adjusted OIBDA excludes the impact of non-cash asset impairments and restructuring charges. Capital expenditures were $15 million for the quarter.

For the second quarter of 2018, Nextel Brazil reported 3G/4G net subscriber additions of 65,700 and 3G/4G churn of 2.75%, a 78-basis point decrease year-over-year. Subscriber migrations from its iDEN network to its 3G/4G network were 31,500, a 12,000 subscriber increase compared to the same quarter last year. Nextel Brazil completed the shutdown of its iDEN network at the end of the second quarter.

"We continued to execute well on our plan and grew our subscriber base this quarter," stated Roberto Rittes, Chief Executive Officer of Nextel Brazil. "We reported 65,700 net adds during the quarter, bringing total net adds year to date to 158,600, our highest semi-annual level of net adds in four years. Looking ahead, we expect to generate a similar level of net adds for the second half of the year."

For the second quarter, Nextel Brazil's average monthly service revenue per subscriber (ARPU) was $15, cost per gross addition (CPGA) was $58 and cash cost per user (CCPU) was $13.

At quarter-end Nextel Brazil's sources of funding totaled $231 million, including $121 million of unrestricted cash and short-term investments and $110 million of cash held in escrow to secure indemnification obligations in connection with the sale of Nextel Mexico.

"Our adjusted OIBDA results this quarter were better than we expected, resulting from our continued focus on reducing costs. As a result, we believe we have turned the corner and expect to generate positive adjusted OIBDA for the second half of the year," said Dan Freiman, Chief Financial Officer of NII Holdings. "Based on our results to date, we are well positioned to meet or exceed our goals for the year."

The Company updated its guidance for 2018 as follows:

• the Company continues to expect 3G/4G net subscriber additions of 300,000 or more for the full year;
• the Company expects churn of 2.75% or lower for the second half of the year;
• the Company expects that consolidated adjusted OIBDA will be positive for the second half of the year;
• the Company continues to expect a similar level of capital expenditures for the full year as the amount reported in 2017; and
• the Company expects cash burn for the second half of the year will not exceed $100 million.

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.