The following are excerpts from OTC Markets Group conference call transcript 2019. The entire duration of the conference call was 48 minutes, and it was organized to look at the fourth quarter and end of year earnings for 2018.
In attendance was Cromwell Coulson, the CEO of the group, and Bea Ordonez, the CFO.
Speaking first, Cromwell Coulson addressed the milestone achieved in 2018, as well as the work to be done in 2019 and the coming years. “Our mission entails creating a well-informed and efficient market,” he said. “And to execute that mission, we would need to implement a profitable strategy that involves operating world-leading markets.”
“We are always focused on productive initiatives that are in line with our mission and core values,” he continued. “Our continuous drive to provide value and opportunities for our partners and shareholders saw us achieve an 8% revenue growth in 2018. We also observed a record-breaking operating growth of 7%.”
The growth of OTC Markets Group over the past year can be attributed to the careful integration of the three business lines of the company. Also, the incorporation of Virtual Investor Conferences (VIC) has also allowed for a transparent platform for investors and company executives to interact on a consistent basis.
As part of growth features, the group announced its acquisition of Qaravan Inc., a company known for its risk and performance and analytics tools for the banking sector. This falls in line with the group’s commitment to improving capital formation while providing adequate support for capital formation.
QTC Market Groups is by no doubt one of the leading venture markets in the world. An opinion Cromwell shares. “We had 70 companies graduating from our markets to a national listing, which puts us ahead as the leading venture market globally,” he said. “Our clients base continues to increase as our tools, products, and performance continue to improve.”
Bea Ordonnez, the CFO of OTC Markets Group, took over from Cromwell and thrown more light on some of the points Cromwell had already raised.
“In Gross revenues, OTC Markets Group generated a sum total of $15.4 million, which was an 11% increment in previous earnings. We also observed an 11% increase in corporate service revenue totaling up to $6.5 million, and overall, there was an 11% increase in total revenue,” she reported.
“OTCQB market saw a 12% increase in revenue. There was a noticeable increase in new sales, and this facilitated a 24% increase in revenue,”
“We had 199 companies join our OTCQX market, leading to a 43% increase in sales in just under a year. We started the year with 366 companies, but closed it with 409,” she added.
“2018 saw us returns climb up to $15.2 million of which $14.2 million was dividends and $1 million was for share repurchases,” she said.
2018 was a productive year for the group with an increase in revenue across all of their business lines. The focus now turns to 2019, and the coming years. Product growth, strategic acquisition, and productive investments leading to an increase in revenues and subscribers are what the focus of the group will continue to be. “All that we do is to deliver value to our shareholders continuously,” Bea concluded.
The conference came to an end with both the CEO and CFO of OTC Markets Group, entertaining some questions and thanking all the participants, partners, and investors. The session was brought to a close after the general proceedings.