Monday, May 31, 2010

Getting Real About Realogy

First Quarter Revenue Rise for Realogy

Realogy, the company behind real estate brands such as Century 21, Coldwell Banker, and the Corcoran Group, has registered an 18 percent rise in revenue for the first quarter of the year compared to 2009 totals.

Realogy’s net revenue for the quarter was US$819 million, however the company still registered a quarterly loss of $197 million. Yet these are still relatively positive figures for Realogy, which came close to defaulting on its senior debt before striking a deal with billionaire Carl Icahn in 2009.
The company says the number of home sale transactions increased 8 percent year-over-year at the Realogy Franchise Group and 11 percent at NRT, its brokerage unit. But while Realogy says these “core business drivers” showed improvement, it admits this growth is principally attributable to the move-up and higher priced markets, along with a comparatively weak first quarter of 2009.

“We saw gains in the average home sale price across our franchise and company-owned offices, and it is increasingly apparent that prices are stabilizing in many markets,” said Realogy president and CEO Richard A. Smith. “The shift in the mix of business we started to see late last year continued into the first quarter of 2010, signaling a much healthier outlook for housing.”
Realogy registered net revenue of $3.9 billion and a net loss of $262 million at the end of 2009. The company began 2010 by hiring three new employees.

Collectively, Realogy’s franchise systems have approximately 14,500 offices and 268,000 sales associates doing business in 93 countries and territories worldwide.

Provided by Donna Antonucci
Prudential Castle Point Realty

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