iQSTEL, Inc. (USOTC: IQST) is again creating shareholder value. On Monday, IQST announced plans to launch its Visa Debit Card service through an agreement with Payment Virtual Mobile Solutions, LLC. The Visa Prepaid Debit Card Service (PDCS) is expected to generate revenues over the next five years between $45 million and $128 million with an impressive anticipated EBITDA margin of 30% to 40%. Shares of IQST are trading higher by 16% for the week following the announcement.
Like its other recently announced deals, this one is expected to be quickly accretive to its operations. IQST will be the lead on the project, and through a new subsidiary, Global Money One, Inc. will own 75% of the venture, with PayVMS owning the other 25%. The collaborative project is designed to enable customers to make purchases in stores and online, withdraw cash at ATMs, and receive cash back when using the card to purchase. Other functions will allow users to recharge prepaid mobile phone service (domestic and international), send money domestically or internationally, and facilitate the deposit of funds into bank accounts, rewards, and digital gift cards. Better still, PDCS customers are expected to be able to pay bills through a supporting payment gateway.
The projected revenue stream could add to an already bullish outlook from IQST management.
A Breakout 2021 For Revenue Growth
The deal with PVMS adds to an already bullish start to the year. On March 4th, IQST announced January revenues of $4.8 million. That more than 159% increase compared to the same period last year puts the company well on pace to reach the high end of its $60.5 million 2021 revenue guidance. And that was before Monday’s news. Guidance may very well be revised higher during its next earnings release.
In fact, through just the second week in March, iQSTEL is adding significantly to a momentous February when the company announced two potentially significant revenue-generating deals. The first is with a global telecommunications provider that can open the door to substantial international opportunities. The second put the company close to launching its new Mobile Number Portability Application (MNPA) Blockchain Platform beginning in April of this year. Both deals can add significant value, and updates are expected soon.
Still, the here and now is worthy of investor attention. It’s surge in January comparative sales show that sales momentum is on the company’s side. Moreover, the traction being made by its wholly-owned subsidiaries is expected to expand client services and benefit from strengthening profit margins. Moreover, its Telecom subsidiaries’ planned consolidation to operate under a single brand name is expected to significantly improve marketing momentum and operating efficiencies. Its Telecom Division, by the way, is booming and is expected to contribute $55.1 million of the forecasted revenues.
The other roughly $5 million in projected revenues is expected to come from the company’s other growing, high margin business units, including its Technology Division (IoT and Batteries for EV), Fintech Division (Visa Debit Card), and Blockchain Division (MNPA). And investors appear to like the total IQST package, sending shares higher by 463% year-to-date.
Growth Could Surprise From Subsidiary Interests
Moreover, while the lion’s share of revenues is being generated from IQST’s Telecom division, IQST’s other operating divisions bring enormous global opportunities. There, IQST is reaching well beyond the US border and is already capitalizing on substantial opportunities from its international presence in 13 additional countries. In each market, the company offers leading-edge Telecommunication, Technology, and Fintech Services for Global Markets. And there’s more to that story.
While trading as a small-cap, IQST is providing big-time services to its clients. Their expertise now reaches into Telecommunications, Electric Vehicle (EV), Liquid Fuel Distribution, Chemical, and Financial Services Industries. That diversification is an asset, especially when markets rotate in favor of cyclical sectors. Thus, having diversity and multiple shots on goal is an attractive feature for IQST.
The best news is that through its four Business Divisions- Telecom, Technology, Fintech, and Blockchain-, IQST is increasing its revenue base by targeting a worldwide B2B and B2C customer base. Those subsidiaries, Etelix, SwissLink, QGlobal SMS, SMSDirectos, IoT Labs, Global Money One, and itsBchain, are also already maximizing opportunities through an extensive portfolio of products and services for its clients that include SMS, VoIP, 4G & 5G international infrastructure connectivity, and Cloud-PBX.
Further, IQST is advancing initiatives to generate shareholder value through OmniChannel Marketing, IoT Smart Electric Vehicle Platform, iQ Batteries for Electric Vehicles, and its IoT Smart Gas and IoT Smart Tank Platform. The company’s most recently announced agreements can generate new revenue streams from development interests in Visa Debit Card, Money Remittance, Mobile Number Portability Application MNPA (Blockchain Platform), and Settlement & Payments Marketplace (Blockchain Platform). Although there is much business in play, IQST has the managerial infrastructure to efficiently exploit its market opportunities.
Thus, with revenues surging and a record year in its cross-hairs, its $1.24 share price share appears to substantially undervalue the company and its assets. However, as investors saw in February, IQST has the means to run higher quickly, evidenced by an intraday surge to $2.00 on February 22nd. Now, with even more firepower in its arsenal, coupled with robust revenue growth and better operating margins, IQST may be in its best position ever to enhance shareholder value. Thus, the 16% gain made this week could be a prelude to a more significant surge to come.
Disclaimer/Safe Harbor: This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company’s current views with respect to future events that involve risks and uncertainties. Among others, these risks include the expectation that any of the companies mentioned herein will achieve significant sales, the failure to meet schedule or performance requirements of the companies’ contracts, the companies’ liquidity position, the companies’ ability to obtain new contracts, the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties, the forward-looking events referred to in this release might not occur.
Additional Disclaimers: Hawk Point Media is responsible for the production and distribution of this content. Hawk Point Media is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advisement and are for general information purposes ONLY. We are engaged in the business of marketing and advising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by Hawk Point Media is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall Hawk Point Media be liable to any member, guest or third pay for any damages of any kind arising out of the use of any content or other material published or made available by Hawk Point Media, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Hawk Point Media was compensated three-thousand-five-hundred-dollars by wire transfer to produce research, video, email, newsletters, and editorial commentary for iQSTEL, Inc. by a third pay. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. Hawk Point Mediastrongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.
The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results.Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.