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About Idt Corporation

IDT keeps international phone calls cheap, whether you're calling Argentina or Zambia. The communications holding company operates primarily through subsidiary IDT Telecom, which provides prepaid and rechargeable international calling cards and other payment services to customers across the world through the Boss Revolution brand. As a pioneer in international callback technology (sometimes known as call reorigination), IDT Telecom also offers wholesale termination services to reroute international calls through less expensive US exchanges, and payment services including mobile top-up. In addition, the company offers local and long distance services in 11 states under the IDT America brand.

Operations

IDT Corporation offers communications and payment services through four verticals: Retail Communications, Wholesale Carrier Services, Payment Services, and Unified Communications as a Service.

Retail Communications provides prepaid international long-distance calling. Its customers are primarily foreign-born individuals calling home from the US. It generates 40% of total sales.

Wholesale Carrier Services terminates international long-distance calls for IDT's retail customers and for other telecoms companies, services providers, and global resellers. Its network links virtually every country and significant carrier in the world.The segment accounts for 40% of sales.

Payment Services consists of international mobile top-up sold through IDT's retail network or from the Boss Revolution online/mobile platform and app. It also counts IDT's National Retail Solutions business, which provides point of sale terminals and related services, such as customer reward programs and credit card processing. Payment Services generates around 15% of sales.

The Unified Communications as a Service segment generates most of the remaining revenue and includes VoIP (voice over internet protocol) services under the net2phone brand.

Geographic Reach

The US is IDT Telecom's largest market, representing about 55% of revenue. Its largest international market, the UK, accounts for about a 15%. Other international markets include the Netherlands, Spain, Germany, Belgium, Ireland, Italy, Luxembourg, Sweden, Finland, Switzerland, Denmark, Norway, Portugal, Austria and Greece.

IDT places voice and data technology around the world to support its international network. It operates voice switches and points of presence in the US, Europe, South America, Asia, and Australia. The company's network includes data centers in the US, the UK, and Hong Kong, which serve its voice and payment services. IDT also has placed some of its application infrastructure on a leading cloud computing provider.

Sales and Marketing

IDT Telecom markets its prepaid calling cards to ethnic and immigrant communities who frequently make international phone calls. The company offers more than 1,000 different calling cards in the US and more than 800 cards internationally. It sells the cards to major retailers in the US and through a network of several hundred distributors. Its International Mobile Top Up (IMTU) business allows customers to purchase minutes for a prepaid mobile phone in another country, and its BOSS Revolution service offers pay-as-you-go international calling without a PIN. It also offers phone apps for iOS and Android.

Financial Performance

IDT's revenue in fiscal 2017 (ended July 31) was flat on prior year at $1.5 billion. Retail Communications fell again, by some $55 million, as changes in regulation triggered an increase in competition from major US telecoms companies on US-Mexico international calls, driving down rates sharply; some companies were even offering unlimited calling. However, the fall was offset by an increase in Wholesale Carrier Services revenue, which was boosted by traffic growth to the higher revenue-per-minute regions of Africa and the Middle East. The Payment Services division also grew modestly, but was offset by the discontinuation of the Zedge business, worth around $9 million annually.

Net income fell sharply for second consecutive year, down 65%, or $15.3 million, to just $8.2 million. The worsening was a result of an increase in direct cost of revenue in the Wholesale and Payment Services verticals, partially offset by a decrease in Retail Communications cost of revenue.

The company's cash flow is tight. It posted cash from operations of just $19.0 million in 2017, down from $49.1 million. The result was down to lower net income and changes in trade accounts receivable.

Strategy

IDT Corporation is in the latter stages of a long transition away from pre-paid, disposable calling cards towards pay-as-you-go PIN-less international calling service. The transition has consisted of non-core business exits -- such as CTM Media (2009), Straight Path Communications (2013), Zedge (2016), and IDR Financial Services Holdings (expected to close in 2018) -- and investment in new platforms and technologies. A major target of investment is its Boss Revolution international calling service, a new cornerstone of the business and which was first introduced in 2008. IDT has been improving it steadily with new services and functionality. It launched a Boss Revolution app in 2013 and in 2017 it launched a mobile web portal that allows any smartphone owner to become a Boss Revolution retailer and manage their account. Also in 2017 IDT introduced the Boss Revolution Money app, which combines with the calling app to allow money transfer, electronic gift cards, and mobile airtime top-up.

Additionally, the company refocused its net2phone business to provide cloud-based communications to small and medium-sized businesses.

In 2018, IDT entered into an agreement with Ripple, a blockchain software provider for banks, to allow for the transfer of XRP, Ripple's cryptocurrency. IDT will use Ripple's XRapid product, while uses XRP as a bridge currency to rapidly transfer and settle global money transfers.

Mergers and Acquisitions

In 2017, IDT's Net2phone subsidiary acquired LiveNinja, bringing more live chart capabilities to the PicuP communications service for small and medium-sized businesses.

Idt Corporation

520 BROAD ST
Newark, NJ 07102-3173
Phone: 1 (973) 438-1000

Stats

Employer Type: Publicly Owned
Stock Symbol: IDT
Stock Exchange: , NYSE
Deputy Chairman: Liore Alroy
Chief Executive Officer and Chairman of the Board: Howard S. Jonas
Telecommunications Analyst: Yaniris Taveras
Employees (This Location): 500
Employees (All Locations): 1,075

Major Office Locations

Newark, NJ

Other Locations

Newark, NJ

Competitors