NII Holdings Inc., a wireless service provider to Latin American businesses, said Wednesday that profit grew 85 percent in the second quarter, beating Wall Street expectations, because of subscription growth.
NII reported net income of $155.2 million, or 88 cents per share, compared with $84.1 million, or 47 cents per share, in the year-ago period.
Revenue rose 40 percent to $1.1 billion, from $787 million in the second quarter of 2007. Revenue from digital handsets and accessories more than doubled during the period to $61 million.
Analysts surveyed by Thomson Financial expected earnings of 64 cents per share on sales of $1.05 billion.
NII ended the quarter with more than 5.4 million subscribers, a 34 percent increase from a year earlier. During the quarter, NII had 394,500 net additions, the largest ever in a quarter.
Average monthly service revenue per subscriber grew $1 compared with the previous year to $59. But cancellation rates, known as churn, grew slightly to 1.89 percent, compared with 1.84 percent in the previous quarter.
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