Feb 28 (Reuters) - NII Holdings Inc, which provides telecom services under the Nextel brand in Latin America, reported a 22 percent drop in quarterly operating revenue due to mounting subscriber losses, sending its shares down 48 percent in premarket trading.
The company reported a net loss of 247,000 subscribers in the fourth-quarter ended Dec. 31 due to a modification in its deactivation policy for inactive prepaid subscribers, particularly in Mexico.
NII has been struggling to move customers in Mexico to its own network after Sprint Corp shut its iDEN network in June. The company operates the Nextel brand under a license from Sprint.
NII reported a net loss of 390,000 subscribers in Mexico.
The company also forecast a negative consolidated adjusted operating income before depreciation and amortization for the full year as it invests to boost subscriber numbers.
Operating revenue fell 21.7 percent to $1.08 billion in the quarter, in line with the average analyst estimate, according to Thomson Reuters I/B/E/S.
NII’s shares were down at $1.30 in premarket trading after closing at $2.57 on the Nasdaq on Thursday.
Reporting By Lehar Maan in Bangalore; Editing by Sriraj Kalluvila