Nextel will not have money in 2020 if sale to Claro is not approved – Telecommunications

NII Holdings, owner of Nextel Brasil, released its financial statement for the second quarter of 2019 and remains in the red: the operator had a net loss of US $ 12.15 million and says that if the sale to Claro is not completed by the end of the year, it will have no money to continue operating in 2020. The acquisition needs to be approved by Anatel and Cade (Administrative Council for Economic Defense).

Nextel

Due to the new loss, Nextel needed new contributions from its shareholders, totaling US $ 18 million. Operating revenue was US $ 144.8 million, and investments in the network (Capex) were US $ 13 million.

The operator ended the quarter with 3.5 million users, an annual growth of 12.2%. O TeleSynthesis points out that the operator’s ARPU was R $ 53, a decrease of R $ 2 in relation to the previous year. Still, it is a much higher value than the competition, since its focus is on postpaid; prepaid plans (Nextel Happy) are even separated on a different website.

Nextel only maintains operations in São Paulo, Rio de Janeiro and the Federal District. In other states, the operator serves its base through a roaming agreement with Vivo, which has recently been expanded to allow access to the 4G network.

Nextel is at risk if sale to Claro is not approved

Claro bought Nextel for US $ 905 million in March, but the deal is still subject to approval by Anatel and Cade. In the disclosure of the balance sheet, the financial director of NII Holdings says he expects the sale to be completed by the end of 2019, and that the operator has a strategy of focusing on increasing liquidity.

However, the company admits the possibility of the deal being completed in 2020, and in that case, there are only funds to finance the first quarter’s operation. In the event of an even greater delay, Nextel will need to change its business plan to reduce expenses or seek new financing.

If the sale is not completed and the operator is unable to recover the money deposited in the guarantee account, Nextel may become unfeasible. “There are substantial doubts about our ability to continue operating,” says the company.

With information: Nextel, TeleSynthesis.

Leave a Comment