Ecommerce provider Ebix saw revenues decline by 15% YoY to $242.7m, driven primarily by a 20% decline in revenues for EbixCash – its India-based subsidiary that offers travel money, gift cards and remittances. However, the company’s EBITDA (plus non-stock compensation) rose slightly to $36.1m, giving it a higher EBITDA margin around 14.6%, while the recently approved EbixCash IPO could help reduce the company’s debt.
Exchanges, including EbixCash and the company’s insurance exchanges, accounted for 94% of revenues, but Ebix’s prepaid cards division took a sales hit in Q1. Excluding these cards, revenues grew 17.6% YoY and the company saw growth across 9 out of 11 geographies.
FX and particularly the strong US dollar continues to have an impact, with the company saying that revenues would have been $19m higher ($261.7m) on a constant currency basis. US payments companies in particular saw headwinds as a result of FX fluctuations last year, as we found in a recent report.
Ebix’s results also showed 3% decline in its revenue for its insurance exchanges division, while its risk compliance solutions rose 14% (though individually, these segments are much smaller than EbixCash).
With debt and other non-operating costs continuing to hang over results, Ebix has reasserted its pledge to become debt free in 2023. One of the things that should help this is the upcoming EbixCash IPO, which has finally received regulatory approval after a long delay and is expected to raise between $732m and $975m for the company.