OTC Markets Group said its net income increased 69 percent in 2011, on a revenue jump of 18 percent.
In the fourth quarter, revenue increased 17 percent and net income 18 percent.
The growth came as a result of two main factors: the expansion of its highest-level market, OTCQX, and market data distribution, said R. Cromwell Coulson, President and Chief Executive Officer.
For the year ended December 31, 2011, gross revenues totaled $32.9 million, an increase of $4.9 million, or 18 percent. Net income for 2011 equaled $4.9 million, an increase of $2.0 million, or 69%, Diluted earnings per share for the year 2011 was $0.45, an increase of $0.17, or 64 percent.
Gross revenues for the fourth quarter totaled $8.8 million, an increase of $1.3 million, or 17 percent. Net income for the fourth quarter of 2011 was $1.3 million, an increase of $0.2 million, or 18 percent.
"The number of companies on our OTCQX marketplace nearly doubled during 2011, and we have seen continuing growth during the first quarter of 2012," Coulson said. "The rapid growth of OTCQX and the expansion of our market data distribution network are positive signs for OTC Markets Group.’’
The OTCQX market added 155 companies, including Danone, E.ON AG, Publicis, Repsol and Swiss Re Ltd.
During the fourth quarter, the company entered into agreements to have its market data distributed through the NYSE Technologies' SuperFeed and Nasdaq UltraFeed data feeds.
Issuer Services revenues increased $3.2 million or 68 percent, primarily due to the 97 percent increase in companies on the OTCQX marketplace, from 159 at year-end 2010 to 314 at year-end 2011.
Market Data Licensing revenues increased $1.3 million, or 11 percent, primarily due to increased professional license subscriptions;
Trading Services revenues increased $0.4 million, or 3 percent, primarily due to increased usage of the OTC Link trading system.
OTCQX is a venue for what the company considers the best stocks traded over the counter. OTC QB and OTC Pink are its other markets.
Tom Steinert-Threlkeld writes for Securities Technology Monitor.