(RTTNews) - NII Holdings, Inc. (NIHD: News ), a provider of wireless communication services to businesses and individuals in Latin America, Thursday reported a rise in profit for the third quarter, despite a decline in revenue, benefiting mainly from foreign currency transaction gains, compared to a foreign currency transaction loss last year.

Net income for the third quarter rose to $117.0 million or $0.69 per share from $84.4 million or $0.50 per share in the previous year. Resulsts for the quarter include $45 million of foreign currency transaction gains primarily related to the strengthening of currency exchange rates of the Brazilian Real relative to the U.S. Dollar.

On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.55 per share for the quarter. Analysts estimates typically exclude special items.

Operating revenues for the quarter declined 3% to $1.14 billion from $1.18 billion a year ago. Analysts expected revenue of $1.12 billion for the quarter.

Service and other revenues declined to $1.08 billion from $1.12 billion last year. Digital handset and accessory revenues declined to $64.1 million from $66.6 million a year ago.

By geography, Nextel Mexico reported operating revenues of $470.8 million, compared to $587.5 million in the earlier year. Nextel Brazil revenues rose to $473.3 million from $380.1 million, while Nextel Argentina revenue declined to $127.9 million from $150.3 million. Revenues from Nextel Peru increased to $66.8 million from $62.7 million a year ago.

Total operating expenses for the quarter declined to $956.1 million from $963.8 million in the earlier year.
For the third quarter, the company reported foreign currency transaction gains of $45.1 million, compared to a foreign currency transaction loss of $56.4 million in the previous year.

Total digital subscribers as of September 30 increased to 7.04 million from 5.84 million last year. Average monthly revenue per handset/unit in service declined to $46 from $59 a year ago. The company also reported churn of 1.93% for the third quarter, an increase over the 1.87% churn level in the third quarter 2008.

Cost per gross add, which is calculated by dividing selling, marketing and handset and accessory subsidy costs, excluding costs unrelated to initial customer acquisition, by new subscribers during the period, declined to $268 from $318 last year.

For the nine-month period, net income declined to $321.9 million or $1.91 per share from $340.0 million or $1.99 per share in the same period of the previous year. Operating revenues for the period declined to $3.16 billion from $3.28 billion last year.

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