Re/Max’s yearly and quarterly revenues are up, despite a “correcting market,” the company disclosed in an earnings report Thursday.
Revenue at Re/Max rose 4.8 percent in the fourth quarter of 2018, hitting $50.8 million, according to reporting by Inman. This was higher than the previous consensus estimate of $50.27 million. Net fourth quarter income was $6.3 million.
“We are pleased with our fourth quarter performance as our differentiated business model continued to demonstrate its strength in a correcting market,” Adam Contos, RE/MAX Holdings CEO, said in a statement.
Yearly revenue for 2018 was also up at $212.6 million, a year-over year increase of 9.8 percent. Net income for the year was $27 million.
In the third quarter of 2018, TRD reported that the brokerage had lowered its guidance for full-year revenue to $210 million to $213 million, down from $213 million to $216 million, due to a “shifting market.”
The company attributed the increase in revenue to acquisitions. But the brokerage’s most reliable recurring revenue streams come from franchise fees and annual dues.
The company doubled their Motto Mortgage franchises, ending the year with 78 offices. Revenue from franchise fees alone was up 8 percent at $101 million.
In early February, Re/Max announced it would be reorganizing its franchise structure to consolidate 10 regions into four, and focus on training and recruiting. [Inman] – Decca Muldowney