--- the subscriber area has no ads and those above are not selected or endorsed by this site ---


Ebix 2Q20 results +3

14:57 07-Aug-20


Ebix has reported its second quarter results:
Obviously I'm staying away from the stock, in keeping with my earlier comments.  I further note that although management was quick to highlight the only small decline in cash flow, revenues still declined 23% YoY.  That said, $6.1M of the impact was from currency, which should rebound this quarter.

I had waited to see if technical difficulties with the conference call could be resolved quickly, but I will have to listen later and most likely will not publish further.  Of course, I will always reply to questions and I am glad some are profiting today, as EBIX was up over 10% to $27 until recently.  My difference of opinion with the market can by crystallized in my response to this statement from the CEO:
As the world stabilizes and people start traveling, we are likely to see a positive upsurge in our numbers, particularly in businesses where we have a leadership position such as forex, remittance, travel etc.
Implicit in this statement is the assumption that a full recovery will be measured in months.  I don't think there is one in sight for travel and remittances in developing economies.  Although profits are what matter, they do need to be measured against debt.  Invest carefully.