Tuesday, July 29, 2008

Ibasis Reports Q2 Earnings - Phone Card Status

Last week Ibasis released it's Q2 earnings statement and it looks like their revenue and gross profit increased which should make their stock holders happy. I won't bore you with all of the EBITA and overall financial breakdown (if you want to read about it go here).

As for their calling card business here is what Offer Gneezy, CEO had to say:

"Our retail business in which traffic comes directly to our network from retail consumers began to stabilize in Q2 with growth in minutes and relatively flat revenue. Gross profit declined as the result of the introduction of new calling cards which we believe will help to drive future growth. While there is continuing softness in the economy and other factors affecting the pre-paid calling market we expect modest growth in the balance of the year."

Looks like their calling card business is continuing to shrink just like everybody else. I think their Pingo business is doing ok and probably holding steady and it is most likely their distribution phone card business that is seeing the big decline. Here is Richard Tennant, CFO breakdown:

"Our retail business consists of our retail pre-paid calling card business and our Pingo e-commerce business. Revenue from our retail business for the second quarter was $20.9 million compared to $27.9 million in the second quarter of 2007 and $20.6 million in the first quarter of 2008. "

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