Realogy announces results for its second quarter 2019

Realogy Holdings Corp., one of the largest full-service residential real estate services company in the United States, has reported financial results for the second quarter ended June 30, 2019.

"In the second quarter of 2019, we delivered substantial profitability and progress on our strategy," said Ryan Schneider, Realogy's Chief Executive Officer and President. "In the quarter, we continued to enhance our value proposition with new products, new partnerships and new technology and data offerings, all designed to drive future top and bottom-line growth for Realogy."

"The solid financial performance we delivered in the second quarter was driven by improving homesale transaction volume, moderating agent commission splits and strong cost management," said Charlotte Simonelli, Realogy's Executive Vice President, Chief Financial Officer and Treasurer. "We continue to believe we will see sequential improvement with a return to positive transaction volume growth in the third and fourth quarters and are committed to using our strong free cash flow to reduce our debt and to invest in our business."

Second Quarter 2019 Highlights

• Generated Operating EBITDA of $245 million.
• Delivered net income of $69 million and Adjusted net income of $95 million.
• Tracking to achieve $70 million of realized cost savings with 60% of actions already completed toward this target. Through Q2 2019, $22 million of the $70 million in cost savings identified for 2019 have been realized through the income statement.
• Reduced net corporate debt by $113 million from March 31, 2019.
• Increased agent engagement with Social Ad Engine, the marketing product we launched with Facebook/Instagram in the first quarter of 2019. Thousands of marketing campaigns have already delivered over 85,000 leads for our agents.
• Expanded Listing Concierge to about 60% of the NRT footprint with agents continuing to achieve higher commission rates from home sellers compared to agents who do not use the product.
• Continued moderation in commission split pressure, up only 21 basis points year-over-year.
• Grew the NRT agent base approximately 2% to 51,000 in the second quarter of 2019.

Second Quarter 2019 Financial Highlights

The following table sets forth Realogy's financial highlights for the periods presented (in thousands, unaudited):

SOURCE Realogy Holdings Corp.