Ritchie Bros. Auctioneers Incorporated (NYSE:RBA) Q3 2019 Earnings Conference Call - Final Transcript
Nov 08, 2019 • 11:00 am ET
Sharon R. Driscoll
the strength of our 5% ggV volume growth on a constant currency basis and stronger guaranteed contract rate performance NC revenues which contributed to our 11% service revenue growth in the quarter. Our online ggV had robust growth of 37% led by marketplace he delivering another tremendous quarter of growth 56% over last year, along with strong iron planet weekly options and over 120% growth in the planet. Another highlight in the quarter was the great work from our Richie brothers Financial Services team which produces 31st consecutive quarters double digit revenue growth at a very strong 29%. Our results were unfavorably impacted by a 3% ggV decline in our live auction channel and lower year over year inventory profit rate performance.
The live auction ggV decline was driven by a few factors. First a shift in our martech Netherlands option to q2 of this year, coupled with challenging environments within the global agriculture and energy sectors. regionally, our US team had an impressive quarter, delivering double digit total GDP growth, led by strong online performances from each of marketplace IE iron planet weekly and Gulf planet, together with high single digit growth in live industrial options. The headline story for our Canadian business was slightly less positive, as we experienced ggV decline resulting primarily from the weakness in the agriculture sector. And general uncertainty for industrial designers primarily in Western Canada leading into the federal election. The agriculture weakness was driven by lower end commodity prices, international trade uncertainty and unfavorable weather affecting harvest timing and leading to a different set of equipment consignments. All in we held 13 fewer on the farm options in candidate versus last year's third quarter, and saw softer agriculture performance that our live events.
Notably however we are already seeing a more positive story unfold and good early momentum in Q4 with booked volumes from on-the-farm auctions significantly up over last year. GTV in our international group declined in the quarter and was heavily impacted by the decline in the euro versus the U.S. dollar. Excluding the significant unfavorable impact of foreign exchange international was flat till last year despite the shift of the Moerdijk auction into the second quarter and the softness in the Middle East. Finally our international group posted another strong Marketplace-E performance with GTV growth in the quarter up 148%. I wanted to add that our operational metrics remain strong and we are encouraged by our increases in the number of listed items and total number of overall bidders.
And overall in the market as it relates used construction equipment supply OEM production levels appear to have caught up to new equipment demand and large strategic accounts are shifting their focus towards inventory management which could indicate further loosening of equipment supply in the near to midterm. Additionally in the transportation sector we have seen more assets come to market and coupled with some weakness in demand has led to pricing pressure on those assets in certain markets. The