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Anywhere Real Estate navigated a treacherous cycle of shrinking sales transactions to post $19 million in profit during the second quarter of 2023 despite plummeting revenues, according to an earnings call Tuesday morning.
The world’s largest franchisor of residential real estate brands, including Century 21, Coldwell Banker and Better Homes and Gardens, posted a profitable quarter for the first time since the third quarter of 2022 despite reporting sagging revenues of $1.7 billion in line with its own expectations.
The real estate services company formerly known as Realogy also reported profits of 17 cents per share for the three-month period ending June 30.
“In the midst of a challenging housing market, we delivered results in line with our expectations and continue to invest to set Anywhere up for an even stronger future,” Anywhere President and CEO Ryan Schneider said in a statement Tuesday morning. “We are accelerating our strategy, which includes growing our high-margin franchise business, expanding our luxury leadership, simplifying and integrating the consumer transaction experience, and further transforming our cost base as we position Anywhere to lead real estate to what’s next.”
The quarter marks a return to profitability for Anywhere, which began the year with a $138 million loss under its belt from the first quarter as revenues fell 31 percent year over year and the company found itself burdened with legal fees tied to an ongoing anti-trust lawsuit newly certified in March as a class action case. The period marked the second unprofitable quarter after reporting a loss of $453 million during the fourth quarter of 2022.
Markets reacted positively to the earnings, with the company’s stock price shooting up 8.5 percent at open and closing at $8.70 a share.
The second quarter also saw Anywhere’s commission splits climb 32 basis points year over year, which the company attributed to an improved competitive environment. However, transaction volume was down 23 percent annually to 279,000 closed transactions and closed home sale sides fell 23 percent to 203,928.
Alongside the earnings report, the firm announced Tuesday morning in a call with investors that it had entered into a debt exchange agreement with the investment manager Angelo Gordon and that it intended to deliver $200 million in cost savings for the full year, having already delivered $100 million at the halfway point.
The company ended the second quarter with $179 million in cash and cash equivalents after ending the first quarter with only $122 million on hand. At the end of 2022, it had $214 million in cash.
Anywhere delivered impressive results in the second quarter despite a tough real estate market,” Charlotte Simonelli, Anywhere executive vice president, chief financial officer and treasurer, said in a statement. “We continue to be laser-focused on what is in our control, including driving meaningful cost savings, making progress on our agent commission costs, and opportunistically reducing our debt with the transaction we announced this morning.”
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