OTC Markets Group Inc (OTCQX: OTCM) posted third quarter results Tuesday that saw revenue rise 7% to $15.8 million, compared to $14.8 million in the same quarter a year earlier.
“We were pleased to deliver our eleventh consecutive quarter of revenue growth,” said Bea Ordonez, chief financial officer at the OTC Markets Group.
“All three of our business lines contributed quarter over quarter revenue growth, with more companies trading on our OTCQX Best Market, more users of our industry leading compliance analytics products and continued growth in volumes traded on our OTC Link ECN the primary drivers," she added.
The company reported 8% growth from its corporate services business, driven by an increase in the number of companies on its OTCQX market, as well as price increases for renewing subscribers on the OTCQB market, which offset a slight decline in the number of companies on that market.
Meanwhile, market data licensing revenue saw a 6% jump, with increased usage of its suite of data license products, including its compliance analytics products.
OTC Link revenue increased 6% over the prior year quarter. The increase was driven by revenues from its OTC Link ECN as well as an increase in revenue from quotes and messages on its OTC Link ATS.
The company reported net income of $4 million for the quarter, and diluted earnings per share on a GAAP basis of $0.33.
The company announced a special dividend of $0.65 per share, and fourth quarter dividend of $0.15 per share, marking their 44th consecutive quarterly dividend and eight consecutive special dividend.
“We achieved record revenues in the third quarter and have continued to focus our efforts on generating value from the significant investments we have made during 2019 — in our facilities, in our technology platform and in our people,” said OTC Markets Group CEO R. Cromwell Coulson.
“During the third quarter, we completed upgrades to our primary and secondary data centers ahead of schedule and with no interruption to our business. We remain committed to enhancing our value proposition and continuing to deliver public markets that efficiently serve the needs of brokers, banks, companies and investors," he added.
In October, the company announced a strategic alliance with North Capital Investment Technology Inc to provide companies with access to a technology platform that enables them to cost effectively raise capital online.
Through the strategic alliance, the OTC Markets Group will provide OTCQX and OTCQB companies with access to a technology solution that will allow them to efficiently conduct and manage a range of securities offerings online. North Capital's technology and ancillary offerings provide issuers with an automated workflow that streamlines the investment process.
The OTC Markets Group operates the OTCQX Best Market, the OTCQB Venture Market and the Pink Open Market for 10,000 US and global securities.
The New York-based operator of financial markets has over 450 securities from 27 countries trading on its OTCQX Best Market.
Contact Uttara Choudhury at [email protected]
Follow her on Twitter: @UttaraProactive