IDT Corporation (NYSE:IDT) has reported a decrease in third-quarter 2023 earnings but a big rise in earnings as it cut costs and grew its three high-growth, high-margin businesses.
The global provider of communications and payment services posted revenue of $299 million for the quarter ended April 30, 2023, down 9% from 3Q 2022, while direct cost of revenue fell 15% to $210 million.
Revenue from its National Retail Solutions (NRS), net2phone and Boss Money remittance units all increased. Revenue from its traditional communications segment continued to decline but maintained “relatively resilient cash-flows,” the company said.
Earnings per share (EPS) rose 50% to $0.27 and adjusted EPS more than doubled to $0.46 from $0.22 a year earlier.
The company ended April with $138.5 million in cash, cash equivalents and investments, with no outstanding debt.
“NRS added new POS (point of sale) terminals and payment processing accounts at a record pace this quarter, and achieved solid year-over-year increases in all three of its recurring revenue verticals as well as in recurring revenue per terminal,” CEO Shmuel Jonas said in a statement.
“With our diverse mix of businesses, backed by a solid balance sheet and with no debt, IDT is positioned to continue delivering solid results across a wide variety of economic conditions while returning value to our stockholders,” Jonas added.
The company’s shares were 0.3% higher at $31.25 in Tuesday pre-market trade.
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