OTCM OTC Markets Group Inc (QX)

EDISON EQUITY RESEARCH: OTC MARKETS GROUP - CONTINUED PROGRESS IN OTCQB VENTURE MARKET


In Q215 OTC Markets Group (OTCQX: OTCM) reaped the rewards from its development of OTCQB Venture Market. Subscriptions surged in the quarter and were mainly responsible for a 21% rise in gross revenue y-o-y and 8% q-o-q. With Q215 expenses unchanged on the previous quarter, Q215 net income rose 29% q-o-q and 48% y-o-y. The Q215 dividend was increased to $0.14 per share from $0.1 in the previous quarter. The company has cash in its balance sheet, an increasing dividend, yields 3.5% and is trading below our DCF valuation.

OTC Markets Group (OTCM) operates the OTCQX Best Market, OTCQB Venture Market and OTC Pink financial market for 10,000 US and global securities. Its trading system OTC Link ATS is operated by OTC Link LLC, a member of FINRA/SIPC and SEC regulated ATS. Its markets offer a cost-effective solution for targeting US investors.

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