Talinec Holdings Ltd: Neutral on NII Holdings - Analyst Blog l Docstoc l Tumblr

NII Holdings, Inc. , ( NIHD ) has recently declared dismal second-quarter 2012 results where both its top and bottom lines fell short of the Zacks Consensus Estimates.

NII Holdings reported weak subscriber addition during the second quarter of fiscal 2012 coupled with lower Average Revenue per Subscriber (ARPU) and higher churn rate. Delay in the launch of 3G services and reduction of customer retention cost has resulted in such disapointing results.

NII Holding’s leverage ratio has also increased from 0.50 in 2010 to 0.61 in 2011, indicating its higher dependency on debt financing. We believe that the company will issue more such senior notes in the upcoming quarters to fund their newly launched 3G networks across all its markets as well as take part in spectrum auction, which in turn, will further increase its leverage ratio.

Read more: http://community.nasdaq.com/News/2012-09/neutral-on-nii-holdings-analyst-blog.aspx?storyid=171718#ixzz267mvQGD6 » Talinec Holdings Ltd: Neutral on NII Holdings - Analyst Blog l Docstoc l Tumblr