Greg McKinley's questions to IDT Corp (IDT) leadership • Q4 2024
Question
Greg McKinley of Asymmetric Management asked about the money transfer business, focusing on incremental margins and investment needs now that it has reached profitability. He also inquired about the expected moderation in the rate of decline for the traditional business and the consolidated outlook for revenue and EBITDA in fiscal 2025.
Answer
Executive Samuel Jonas noted the goal for BOSS Money is long-term customer retention over maximizing per-transaction margins. CFO Marcelo Fischer added that BOSS Money is expected to deliver over $10 million in EBITDA in fiscal 2025, driven by continued growth and operational efficiencies. Fischer also projected the EBITDA decline in the Traditional Communications segment would slow to around $5-6 million in FY2025, down from $11 million in FY2024, due to cost-cutting and growth in the mobile top-up business. He guided for a slight increase in consolidated revenue and projected consolidated EBITDA could top $100 million in fiscal 2025.