Ebix Provides Clarifications on the Nature & Metrics of its EbixCash Businesses
JOHNS CREEK, Ga., June 21, 2022 (GLOBE NEWSWIRE) — Ebix, Inc. (NASDAQ: EBIX), (the “Company”) a leading international supplier of On-Demand software and E-commerce services to the insurance, financial, travel, healthcare and e-learning industries today provided clarifications related to nature and metrics of businesses and brands that underlay its overall EbixCash business.
- Gift Card Sales – Ebix clarified that EbixCash gift cards are sold to Corporate clients only for their employees, partners, affiliates or distribution network.
- Gift card sales to Corporates could have a different revenue treatment by EbixCash (Gross basis – being the manufacturer) vs. the Corporate (Net basis – being a commissioned corporate). For example, a $100 value card is recorded as $100 in gross revenue by EbixCash while possibly getting recorded between 20 to 40 cents in net revenue by the corporate agent, who provides the card to its corporate network.
- Per EbixCash’s contract with issuing Banks, gift cards can only be sold through Corporates approved by the Banks, to their Corporate network after a mandated (Know Your Customer (KYC) onboarding process.
- Per EbixCash’s contract with issuing Banks, Gift cards cannot be sold through just any EbixCash franchisee or retail outlet.
- Gift cards can only be procured and activated through EbixCash, once the gift cards have been associated with an approved Corporate entity, and only after a KYC approval for the Corporate has been granted by the Reserve Bank of India (RBI). The same activation process also applies for each affiliate network entity associated with the Corporate customer.
- The core functionality, usage, interfacing with vendors and servicing of the card is handled by the Banks, gateway providers, banking technology framework etc. and not by EbixCash.
- EbixCash or Ebix does not have any direct or indirect connection with any of its franchises, corporates or their Directors or employees.
- EbixCash App Downloads of 3.74 million plus – To support the various verticals and sub-brands of EbixCash’s travel, forex, payments, ticketing, remittance, bus exchange, healthcare businesses etc., EbixCash has developed a wide spectrum of highly focused B2B and B2C apps available via the Google Play Store, the Apple App Store or as html browser plugins. Though May 31, 2022 over 3.74 million downloads of these EbixCash Apps have happened, as referenced in the following link: https://ebixcash.com/ebixcashmobileapps/
While EbixCash has achieved substantial total downloads of its spectrum of apps, download metrics are not a core objective for the Company, as the Company is principally focused on providing its services digitally on computers via custom applications built specifically for B2B channel end users. The Company does pursue a direct-to-consumer channel however that is currently accomplished primarily through providing digital technology and services to approximately 650,000 retail locations across South-east Asia. These “phygital” EbixCash outlets are designed to provide “last mile” digital solutions to a prospective base of hundreds of millions of people across the length and breadth of South east Asia. EbixCash is building visibility and brand loyalty with this large base of customers as the Indian economy continues to grow and modernize.
Accordingly, EbixCash is differentiated by its growing array of services and profitable B2C strategy versus other market participants that continue to report substantial losses from their efforts to build viable long term businesses.
- EbixCash WorldMoney Offices – As a result of Covid-19 pandemic shut-downs and as a part of its ongoing cost rationalization efforts, EbixCash elected to close a few EbixCash WorldMoney Forex offices and relocate them to higher traffic locations after securing requisite RBI approvals which are on file. EbixCash WorldMoney outlets are licensed by the RBI to exclusively provide foreign exchange services and thus are not able to sell domestic pre-paid gift cards.
- Following RBI approval on August 17th 2020, the EbixCash WorldMoney Andheri East Office at Sterling Centre, Mumbai was relocated to 7th Floor Surkasha Ace, Andheri East, Unit 701 also in Mumbai.
- The EbixCash WorldMoney Bangalore Forex Office located at Jayanagar was merged with existing RBI licensed EbixCash WorldMoney forex branches at Indiranagar and Malleshwaram in Bangalore. Accordingly, the Jayanagar office lease was terminated on July 20, 2020.
Photos of the two closed offices and their replacement locations along with mapping images, can be seen on https://ebixcash.com/officerelocation/
- RuPay, Master Card and Visa – EbixCash has long-standing, symbiotic relationships with each of the three leading credit card brands which include joint marketing initiatives to drive increased reach and business growth.
- EbixCash is currently engaged in a variety of joint marketing initiatives with its credit card partner which include joint advertisements in magazines, on billboards, on bus shelters and other high-traffic locations across many Indian cities, in addition to social media and web site branding, etc.
- These programs can include celebrity social media visibility, such as recent social media exposure for the EbixCash Globetrotter Travel Card by the Captain of the India Cricket Team via the Mastercard Network.
Photos of some of the campaigns can be seen here: https://ebixcash.com/brandingcards/
- Technology & Related Services – EbixCash’s Technology and services are today used by a wide variety of constituents, across a spectrum of EbixCash products and services. This includes –
- Financial institutions in 70 countries
- Leading banks in India
- Major partners like Western Union, MoneyGram, Ria
- International airports in India
- Top telecom players like BSNL, Airtel etc.
- A majority of India’s Government Bus Roadways corporations while powering information technology in tens of thousands of buses
- IRCTC, the world’s largest railway network, for rail ticket booking, etc.
- Thousands of corporates and in turn their employees
- 12 ports in India
- Many Large airlines in India
- Thousands of Educational institutions
- Large financial networks with thousands of outlets
- Majority of the five star hotels in India
- Duty free shops in India
- Leading Religious institutions
- Large media outlets
EbixCash provides a spectrum of mission critical services to its userbase while ensuring that its systems are running 24 hours per day, 7 days a week, 365 days a year. For more on EbixCash services, technology or distribution reach, please access www.EbixCash.com
About Ebix, Inc.
With approximately 200 offices across 6 continents, Ebix, Inc., (NASDAQ: EBIX) endeavors to provide on-demand software and e-commerce services to the insurance, financial services, travel, healthcare and e-learning industries. In the Insurance sector, Ebix’s main focus is to develop and deploy a wide variety of insurance and reinsurance exchanges on an on-demand basis, while also, providing Software-as-a-Service (“SaaS”) enterprise solutions in the area of CRM, front-end & back-end systems, outsourced administration and risk compliance services, around the world.
With a “Phygital” strategy that combines over 650,000 physical distribution outlets in many Southeast Asian Nations (“ASEAN”) countries, to an Omni-channel online digital platform, the Company’s EbixCash Financial exchange portfolio of software and services encompasses domestic and international money remittance, foreign exchange (Forex), travel, pre-paid gift cards, utility payments, lending and wealth management across 75+ countries including India. EbixCash’s Forex operations is a leader in India’s airport Forex business, with operations in approximately 16 international airports, including Delhi, Mumbai, Mumbai, Hyderabad, Chennai and Kolkata, combined conducting over $4.8 billion in gross transaction value per year (pre-COVID-19). EbixCash’s inward remittance business in India processed approximately $5 billion in gross annual remittance volume (pre-COVID-19) and is the clear market leader. EbixCash, through its travel portfolio of Via and Mercury, is also one of Southeast Asia’s leading travel exchanges with over 517,000 agents and approximately 17,900 registered corporate clients, combined having processed an estimated $2.5 billion in gross merchandise value per year (pre-COVID-19). EbixCash’s financial technologies business offers software solutions at the enterprise level for banks, asset and wealth management companies and trust companies within India, Southeast Asia, the Middle East and Africa. The EbixCash’s e-learning solutions are provided to schools across the breadth of India via high quality 2-D and 3-D animation and multimedia learning. EbixCash’s business process outsourcing services provide information technology and call center services to a variety of industries.
Through its various SaaS-based software platforms, Ebix employs thousands of domain-specific technology professionals to provide products, support and consultancy to thousands of customers on six continents. For more information, visit the Company’s website at www.ebix.com
SAFE HARBOR REGARDING FORWARD-LOOKING STATEMENTS
As used herein, the terms “Ebix,” “the Company,” “we,” “our,” and “us” refer to Ebix, Inc., a Delaware corporation, and its consolidated subsidiaries as a combined entity, except where it is clear that the terms mean only Ebix, Inc.
The information contained in this Press Release contains forward-looking statements and information within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. This information includes assumptions made by, and information currently available to management, including statements regarding future economic performance and financial condition, liquidity and capital resources, acceptance of the Company’s products by the market, and management’s plans and objectives. In addition, certain statements included in this and our future filings with the Securities and Exchange Commission (“SEC”), in press releases, and in oral and written statements made by us or with our approval, which are not statements of historical fact, are forward-looking statements. Words such as “may,” “could,” “should,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “seeks,” “plan,” “project,” “continue,” “predict,” “will,” and other words or expressions of similar meaning are intended by the Company to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are found at various places throughout this report and in the documents incorporated herein by reference. These statements are based on our current expectations about future events or results and information that is currently available to us, involve assumptions, risks, and uncertainties, and speak only as of the date on which such statements are made.
Our actual results may differ materially from those expressed or implied in these forward-looking statements. Factors that may cause such a difference, include, but are not limited to those discussed in our Annual Report on Form 10-K for the year ended December 31, 2021 and subsequent reports filed with the SEC, as well as: the ongoing effects of the Covid-19 global pandemic, the willingness of independent insurance agencies to outsource their computer and other processing needs to third parties; pricing and other competitive pressures and the Company’s ability to gain or maintain share of sales as a result of actions by competitors and others; changes in estimates in critical accounting judgments; changes in or failure to comply with laws and regulations, including accounting standards, taxation requirements (including tax rate changes, new tax laws and revised tax interpretations) in domestic or foreign jurisdictions; exchange rate fluctuations and other risks associated with investments and operations in foreign countries (particularly in India, Australia and Asia, Latin America and Europe wherein we have significant and/or growing operations); fluctuations in the equity markets, including market disruptions and significant interest rate fluctuations, which may impede our access to, or increase the cost of, external financing; ability to secure additional financing to support capital requirements; credit facility provisions that could materially restrict our business; costs and effects of litigation, investigations or similar matters that could affect our business, operating results and financial condition; and international conflict, including terrorist acts and wars.
Except as expressly required by the federal securities laws, the Company undertakes no obligation to update any such factors, or to publicly announce the results of, or changes to any of the forward-looking statements contained herein to reflect future events, developments, changed circumstances, or for any other reason.
Readers should carefully review the disclosures and the risk factors described in the documents we file from time to time with the SEC, including future reports on Forms 10-Q and 8-K, and any amendments thereto.
You may obtain our SEC filings at our website, www.ebix.com under the “Investor Information” section, or over the Internet at the SEC’s web site, www.sec.gov
678 -281-2027 or [email protected]
David Collins or Chris Eddy
Catalyst Global – 212-924-9800 or [email protected]