NEW YORK (TheStreet) -- NII Holdings (NIHD) was plummeting 49.9% to $1.29 Friday after posting a larger-than-expected loss in its fourth quarter, and news that the telecommunications company will have to find ways to fund itself through 2015.
The company posted a net loss of $4.33 a share for the fourth quarter, $2.48 a share worse than the Capital IQ Consensus Estimate of a loss of $1.85 a share. Revenue fell 21.8% from the year-ago quarter to $1.08 billion, in-line with analysts' estimates.
NII Holdings reported a net loss of 247,000 subscribers in the quarter due to difficulties in Mexico and a change in its deactivation policy for inactive prepaid subscribers. The new deactivation policy resulted in a lot of subscriber deactivations, especially in Mexico where the company reported a net loss of 390,000 subscribers.
The company said that average monthly revenue per user (ARPU) was $34 for 2013, down from $42 in 2012.
With recent weak performance NII Holdings said it has adequate funding for 2014, but will have to find a way to fund its business in 2015 and beyond. The company said it will have to "significantly improve its operating performance and consider other options to enhance its liquidity position to meet its financial obligations," according to the earnings report.