NII Holdings Reports 2016 Fourth Quarter And Year-End Results

RESTON, Va., March 9, 2017

"During the year, our team in Brazil made significant progress in our efforts to turn around our business, leading to better operating trends on our 3G platform, including increasing local currency ARPU and decreasing churn," said Steve Shindler, Chief Executive Officer. "Heading into 2017, we are focused on continuing to improve our 3G operations while managing the decline of our iDEN business. At the same time, we are actively exploring strategic options to provide sources of funding that will allow us to meet our future obligations and grow our business or find a buyer for our Company."

Nextel Brazil's average monthly service revenue per subscriber (ARPU) for the fourth quarter of 2016 was $20, a 26% increase on a reported basis, and an 8% increase on a constant currency basis, compared to the same quarter last year. Nextel Brazil's average monthly churn rate for the fourth quarter was 3.65%, a 9 basis point decrease compared to the same quarter last year. Nextel Brazil's cost per gross addition (CPGA) was $100 for the fourth quarter of 2016, an $8 increase on a reported basis, and a 7% decrease on a constant currency basis, compared to the same quarter last year. Nextel Brazil's cash cost per user (CCPU) was $19 for the fourth quarter of 2016, a $3 increase on a reported basis, and a 1% increase on a constant currency basis, compared to the same quarter last year.

At the end of 2016, the Company's sources of funding included $331 million of cash and short-term investments, $163 million of cash held in escrow to secure indemnification obligations in connection with the sale of Nextel Mexico and $87 million in cash pledged as collateral to secure certain performance bonds in Brazil. During 2017, the Company is required to pay an estimated $225 million for principal and interest in connection with its debt service obligations, including capital leases, and expects operational free cash burn to be between $200 million and $250 million.

"During 2016, we executed on a number of initiatives to address our cost structure and preserve our liquidity, which resulted in lower cash burn compared to the previous year," said Dan Freiman, Chief Financial Officer. "However, the challenges we're facing in Brazil and our ongoing debt service requirements are continuing to place significant pressure on our liquidity. As previously announced, our local lenders in Brazil agreed to a standstill agreement during which time we will collaborate with them to work through long-term modifications to the loan agreements that better align with our business and allow us to continue to invest in our Brazilian operations."

Additional details regarding the Company's results, including a more detailed explanation on local currency operating metrics, are included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 that was filed with the Securities and Exchange Commission today. In 2015, the Company sold its operations in Mexico and Argentina, and as a result, all results presented in this press release reflect these markets as discontinued operations. 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 ARPU, 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.