Boosted by a strong quarter in its real estate and travel segments, Cendant on Monday reported record $4.9 billion in fourth-quarter revenues, up from $4.3 billion recorded during the same period the previous year.
Approximately $1.5 billion in fourth-quarter revenue was derived from the company’s real estate franchise segment, which includes the Century 21, Coldwell Banker, Coldwell Banker Commercial, ERA and Sotheby’s International Realty brand names. That was up from $1.3 billion the prior year.
Net income in the fourth quarter was $357 million, or 34 cents per share, up from $288 million, or 29 cents per share, during the last quarter of 2003. Net income for 2004 was $2.1 billion, or $2.02 per share, up from $1.2 billion in 2003.
Revenue for all of 2004 was $19.8 billion, up from $18 billion in 2003. The real estate segment accounted for $6.2 billion of total 2004 revenue, up from $5.2 billion in 2003. The mortgage services segment accounted for $1.1 billion of total revenue, down from $1.5 billion.
Cendant in 2004 experienced “solid operational growth,” according to company president and chief financial officer Ronald L. Nelson. “In our real estate vertical, the combination of our leading position in residential real estate, together with prolonged strength in that sector, enabled our Real Estate Franchise and Operations segment to generate organic revenue growth of 15 percent and organic EBITDA growth of 19 percent,” he said.
The company recently completed the spin-off of the mortgage and fleet operations of PHH Corp. In connection with the spin-off, Cendant has entered into a mortgage origination venture with PHH.
In addition, Cendant recently finished the acquisition of online travel agency Orbitz. The $1 billion acquisition puts Cendant in a leading position for online domestic travel business.
Cendant stock (NYSE: CD) closed at $22.97 per share Monday, up from $22.42 per share Friday.
Cendant Corp. is primarily a provider of travel and residential real estate services. With approximately 90,000 employees, New York City-based Cendant provides these services to businesses and consumers in more than 100 countries.
Send news tips or a letter to the editor to firstname.lastname@example.org.