Cushman & Wakefield sees revenue fall of 6% for first half of the year

Cushman & Wakefield’s service line revenues have fallen by 13% over the first half of the year to $3.1bn (£2.4bn), as capital markets revenues halve. The drop was even more pronounced in Q2, showing a worsening picture for the firm, with service line revenues dropping 15% to $1.63bn for the quarter. Total revenues were also down 6% to $4.7bn for the half, while Q2 revenues dropped 8% to $2.4bn. Net income for the quarter was down 92% on Q2 2022 at just $5.1m, while the firm made a net loss for the six months of $71.3m, and a diluted loss per share of $0.31. The first half of 2022 saw a profit of $142.7m. Adjusted EBITDA for the half was down 57% from H1 2022 at just $207m. While property, facilities and project management grew by 4%, driven by the Americas and Asia-Pacific regions, leasing fell by 20% to $804.4m for the six months and valuation by 14% $334.8m. But capital markets revenue was hit hardest, plunging by 49% to just £334.8m, down from £656.3m for H1 2022. Revenue for Q2 was $191.9m, down from $367.3m for the same period in 2022. While the drag was led by the Americas region, EMEA also added to C&W’s woes, with a 60% fall in capital, markets revenue to just $18m for the quarter, with total revenues down 12% to $239.9m. Adjusted diluted earnings per share of $0.18 were down from $1.10 in the first half of 2022. Chief executive Michelle MacKay said she was “pleased” with the Q2 results, pointing to sequential improvements in revenue and adjusted EBITDA as the firm “continued to execute on our strategic priorities”. However, she acknowledged that transactions continued to drag the bottom line. MacKay said: “As anticipated, transactional markets remained under pressure during the quarter, while our services business showed resiliency, highlighting the benefits of our diversified platform. “We remain focused on strategic growth areas throughout our platform and continue to strengthen our overall position.” However, Cushman & Wakefield said it had achieved $49m of gross cost savings in the first half of 2023 and has increased its full year gross cost savings target to $130m. The firm’s liquidity remains high at $1.6bn, with a $1.1bn undrawn revolving credit facility of around $500m of cash and cash equivalents. Net debt stands at $2.7bn including an outstanding term loan of $2.6bn and senior secured notes of $600m. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews