Otc Markets Group (OTC:OTCM) third quarter results showed further progress with pre-tax profits up by 4% versus Q316 despite a 10% increase in operating expenses to support IT systems and new services. OTCQX and OTCQB received Blue Sky recognition from a further two states taking the total to 27 for OTCQX. Strategic alliances have been established that should help extend OTCM’s geographical reach and broaden the services offered to corporate clients.
Q317 results
Third quarter revenue increased by 8% compared with the same period last year. The main driver of growth was the Corporate Services segment (+19%), benefiting from increased client numbers at OTCQB and a fee increase at OTCQX. Revenues fell at OTC Link ATS as a further reduction in participants coupled with lower quote volumes generally limited fee income. Expenses increased, as noted, trimming the operating margin by one percentage point to 35% and pre-tax profit increased by 4% to $4.6m. One-off tax claims relating to prior years reduced the tax rate to 24%, so earnings per share increased by 14.5% to $0.29. OTCM announced a fourth quarter dividend of $0.14 and a special dividend $0.60 (equalling last year).
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