Colliers’ sales business declines 4% during first half of 2019
Colliers International has reported a 4% fall in revenue from its sales brokerage arm during the first half of 2019, with the decline spread across all three of its geographic regions.
The fall in revenue from its sales division offset a decent performance in outsourcing and advisory and lease brokerage, which saw revenue increase by 9% and 12% respectively, as well as its investment management business.
Colliers said that in the Americas and Asia Pacific regions revenue from the sales business was affected by a reduction in higher-margin sales.
Colliers International has reported a 4% fall in revenue from its sales brokerage arm during the first half of 2019, with the decline spread across all three of its geographic regions.
The fall in revenue from its sales division offset a decent performance in outsourcing and advisory and lease brokerage, which saw revenue increase by 9% and 12% respectively, as well as its investment management business.
Colliers said that in the Americas and Asia Pacific regions revenue from the sales business was affected by a reduction in higher-margin sales.
Overall the group reported a solid first half of 2019, recording a 24% increase in adjusted EBITDA to $131m (£108m), up from $106m in 2018, and a 13% rise in revenue to $1.38bn, up from $1.22bn.
Adjusted earnings per share for the group also jumped by nearly 16% to $1.61, while operating earnings were up 15% to $70.6m and net earnings rose by 11% to $41m for the six months ended 30 June.
Cash and cash equivalents stood at $102m as of 30 June and total debt was $692m.
For the company’s operations in Europe, the Middle East and Africa, adjusted EBITDA dropped to $19m in the second quarter, versus $22m for the same period last year.
Colliers said it was affected by planned investments in talent acquisition in corporate solutions and capital markets practice areas and a change in revenue mix, with workplace solutions and project management carrying lower margins than other services.
In EMEA, revenue totalled $151.6m for the second quarter, compared to $147m in the for the same period last year.
Jay Hennick, chairman and chief executive of Colliers International, said: “Colliers delivered solid internal revenue growth and overall operating performance during the second quarter. Based on our results to date, current business pipelines and acquisitions during the year, we remain optimistic about our growth prospects for the balance of the year.”
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