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OTC Markets Group (OTCM)

Business description

OTC Markets Group operates the OTCQX, OTCQB and Pink financial markets for c 10,000 US and global securities. Its trading system, OTC Link ATS, is operated by OTC Link LLC, a member of FINRA and is an SEC-regulated Alternative Trading System.

Stock data

Market cap.US$336.2m
Last closeUS$29.20
High / Low (52 weeks)US$32.0 / US$23.0
Stock market listingUS
Forecast net cash (US$m)26.6
Forecast gearing ratio (%)N/A
TeamFinancials
SectorFinancials

Price performance

%1m3m12m
Actual(1)8.118.0
Relative *(2.4)4.02.4

* % Relative to local index

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Company news

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2016A 50.9 18.5 16.9 92.4 31.6 15.2
2017A 54.7 19.7 18.4 109.9 26.6 15.7
2018E 57.3 20.2 19.2 131.6 22.2 15.3
2019E 60.1 21.5 20.5 137.4 21.3 14.8

Last updated on 19/07/2018

Investment summary

First quarter gross revenues increased by 7% versus Q117, with the strongest growth (+10%) seen in the Corporate Services segment - contributors included the higher number of OTCQB clients (+2.5%), pricing and accelerated revenue recognition relating to departing OTCQX clients (21 graduated to a national securities exchange vs 11). Market Data Licensing was up 7%, reflecting price increases and take-up of compliance data products; the number of professional data users was little changed. The group operating margin was maintained at 33% and pre-tax profits increased by 7%. After a sharply lower tax charge (of 18% vs 28%), fully diluted EPS were up 19% to $0.31 while a maintained quarterly dividend of $0.14 was announced. OTCM Q218 results are likely to be announced in early August.

Last updated on 27/07/2018

Industry outlook

OTCM continues to gain greater regulatory recognition for its premium markets working with state regulators, while encouraging corporate transparency and facilitating data availability. This does not feed directly to revenues but Corporate Services should see benefits over time. Market Data Licensing has also made progress providing access to data on the 10,000-plus securities quoted on OTC Link ATS in various forms to a wide range of users.

Last updated on 27/07/2018

Key management

Cromwell Coulson , CEO
Bea Ordonez, CFO

Company address

304 Hudson Street
2nd Floor
New York
NY 10013
United States
+1 212.896.4400
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