OTC Markets Group Announces Results for First Quarter 2011

NEW YORK, May 16, 2011 /PRNewswire/ -- OTC Markets Group Inc. (OTCQX: OTCM) today announced its financial results for the quarter ended March 31, 2011, noting strong revenue growth.

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For the three months ended March 31, 2011, revenues from services totaled $7.7 million, an increase of $1.1 million, or 17%, as compared to first quarter 2010 results of $6.6 million.  Net income for the first quarter of 2011 totaled $989,000, an increase of $26,000 as compared to net income for the first quarter of 2010 of $963,000.

"Our increased revenues in the first quarter are primarily due to the continued outstanding growth of our Issuer Services business line, which now represents over one-fifth of our total revenues, and the consistent performance of our Market Data Licensing and Subscriber Services business lines," stated R. Cromwell Coulson, President and Chief Executive Officer.  "The increasing momentum of our OTCQX market tier, which recently rose above 200 companies, was a key factor driving our positive revenue growth."  

"We began the year with a strong broker-dealer and corporate subscriber base, and have focused on continued investment in our people and core technology platforms," continued Coulson.  "The strength of our organization lies in the quality of our people and our primary technology.  Our emphasis on investing in these areas underscores our commitment to providing outstanding service to our subscribers that will increase the trading efficiency and information availability in the unlisted markets.  We have dedicated ourselves to building up our internal capabilities, and our record revenues indicate that we are adding increased value to our subscribers across business lines."

First Quarter Results

Net revenues, after redistribution fees and rebates, for the first quarter of 2011 increased approximately 17%, to $7.1 million compared to $6.1 million for the first quarter of 2010.  The $1.0 million increase in net revenues was primarily the result of a $680,000 increase in our Issuer Services and a $235,000 increase in our Market Data Licensing lines of business as compared to the first quarter of 2010.  The growth in Issuer Services revenues was attributable to a substantial increase in the number of OTCQX® companies, as well as significant additional revenue from our OTC Disclosure and News Service®.  The increase in Market Data Licensing revenue was related to the growth in sales of professional user licenses.

Operating expenses increased approximately 24% during the first quarter of 2011, to $5.6 million from $4.5 million in the first quarter of 2010, primarily due to increased compensation and benefits costs attributable to the considerable growth in employee headcount, as well as increases in computer operations and data communications as well as marketing and advertising expenses.  

Dividend Declaration -- Quarterly Cash Dividend

Contemporaneous with the announcement of earnings for the quarter ended March 31, 2011, OTC Markets Group announced today that its Board of Directors authorized a quarterly cash dividend on its Class A Common Stock of $0.04 per share.  The dividend is payable on July 7, 2011 to stockholders of record on June 21, 2011.  The ex-dividend date is June 17, 2011.  The dividend payment is unchanged from the Company's six previous quarterly cash dividends.

"The Board and I believe that it is in the best interest of our shareholders to pay an attractive dividend," stated Coulson.  "In recognition of our strong cash position and debt-free balance sheet, we are pleased to share these results with our stockholders by continuing our quarterly dividend at $0.04 per share."

OTC Markets Group's Quarterly Report for the first quarter of 2011 is available publicly at www.otcmarkets.com.

About OTC Markets Group Inc.

OTC Markets Group Inc. (OTCQX: OTCM) operates the world's largest electronic marketplace for broker-dealers to trade unlisted stocks.  Our OTC Link™ platform supports an open network of competing broker-dealers that provide investors with the best prices in over 10,000 OTC securities.  In 2010, securities on OTC Link traded over $144 billion in dollar volume, making it the third largest U.S. equity trading venue after NASDAQ and the New York Stock Exchange.  We categorize the wide spectrum of OTC-traded companies into three tiers -- OTCQX (the quality controlled marketplace for investor friendly companies), OTCQB® (the U.S. reporting company marketplace for development stage companies) and OTC Pink™ (the speculative trading marketplace) -- so investors can identify the level and quality of information companies provide.  To learn more about how OTC Markets Group makes the unlisted markets more transparent, informed, and efficient, visit www.otcmarkets.com.  

SOURCE OTC Markets Group Inc.