IDT (IDT) Q4 2004 earnings summary

Executive summary

• Record FY2004 revenue of $2.2169B, up 20.8% YoY, alongside record telecom minutes and growth in entertainment.

• Growth was supported by a global telecom network, a low-cost operating model, and expansion into animation and home entertainment.

Financial highlights

• FY2004 revenue reached $2.2169B, compared with $1.8345B in FY2003; telecom minutes billed rose to 20.456B from 16.460B.

• IDT Telecom generated record operating income of $78.4M in FY2004, versus $63.4M in FY2003.

• IDT Entertainment revenue exceeded $106M, up twenty-fold from $5M in the prior year.

• Year-end cash, cash equivalents, and marketable securities exceeded $1B, with virtually no long-term debt.

Outlook and guidance

• Management identified opportunities to expand telecom brands, family-friendly entertainment, customer reach, services, and new business areas.

• Telecom growth priorities include targeted market segments, cost control, and pursuing new opportunities.

• Plans were developed for possible changes in wholesale lease rates; management said it would not react before changes occurred.