OTC Markets Group Inc. (OTCQX:OTCM) said it continued to make progress on OTC Overnight, a new offering for out-of-hours trading of OTC equity securities.
It provided the update alongside second-quarter results showing gross revenues of $27.6 million, reflecting a 1% increase from the same period last year. Operating income was $8.1 million, a 2% decrease, while the operating profit margin nudged to 30.4% from 31.4%.
Net income for the quarter was $6.7 million, down 3% year-over-year, with quarterly diluted GAAP EPS of $0.56, a 2% decline. Shareholders received $2.2 million in dividends during the quarter. Additionally, a third-quarter 2024 dividend of $0.18 per share was announced.
“Our business saw modest increases in both revenues and expenses in the second quarter of 2024,” said Antonia Georgieva, the OTC's chief financial officer.
She said OTC Link revenues increased as a result of higher trading volumes, while Market Data Licensing saw growth in certain products offsetting declines in others.
"Corporate Services continued to face declining numbers of customers as many of our smaller and more financially vulnerable companies were still navigating a challenging economic environment," said Georgieva.
The quarter ended with 569 OTCQX and 1,085 OTCQB companies listed. Twelve companies graduated to a national securities exchange.
OTC Link ECN had 114 subscribers, up by 10 from the previous year, with average daily trades increasing to approximately 35,000 from 32,000.
On the planned new service, CEO R. Cromwell Coulson said: “We continue to progress towards launching OTC Overnight to facilitate trading from 8 pm to 4 am Eastern time, Sunday through Thursday.
“Overnight trading functionality will allow our broker-dealers to better support investor needs and benefit from existing connectivity to our mission-critical systems. This new offering underscores the importance of our markets for global trading.”