Otc Markets Group (OTC:OTCM) reported FY17 results in line with our expectations, with 7% revenue growth and a lower tax charge driving earnings growth of over 17%. OTCM remains consistent in its focus on positioning itself as a cost-effective, transparent and less onerous way of accessing capital markets. To this end, it has introduced new products, invested in IT, made strategic alliances and continued to work towards further Blue Sky recognitions.
FY17 results
OTCM reported overall revenues up 7%, primarily driven by the Corporate Services segment where stronger sales and lower churn at OTCQB, and a price increase for OTCQX clients contributed to growth of nearly 18%. Operating expenses grew at a slightly slower pace, allowing pre-tax profit growth of more than 8%. The tax charge was lower leading to fully diluted EPS growth of 17% to $1.06. A maintained quarterly dividend of $0.14 was announced and, including the special dividend of $0.60, this gave a total dividend of $1.16 for the full year (unchanged). Net cash of $23.7m at the year-end was only modestly lower after increased capex and returns to shareholders through dividends and share buybacks up 5% to $16.5m.
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