Realtor.com operator Move Inc. on Thursday reported a $2.2 million net loss in the second quarter, or 1 cent per share, compared with net income of $4.4 million, or 3 cents per share, in second-quarter 2007.
The company has plans to reduce annual operating expenses by $20 million by the end of 2008, according to the report, "the full effect of which will not be realized this year," and the company has engaged an investment banker to assist in the sale of Welcome Wagon, a business segment that focused on delivering advertisements to new homeowners.
Move Inc., which operates home-search site Realtor.com through an agreement with the National Association of Realtors trade group and also operates the Move.com Web site, reported total revenue of $61.4 million in the second quarter, compared with $62.5 million in the same quarter last year.
For the six-month period ended June 30, 2008, Move has reported a $6.86 million loss, which compares to a $4.59 million gain during the same period last year.
Lorna Borenstein, Move Inc. president, said that the company’s investment in a redesign of the Realtor.com site has led to "increases in listing page click-throughs, consumers referring listings to friends, agent and broker contacts, and total registrations."
Sales to Realtors of enhanced features and ads at the site "were at all-time highs for June and July," Borenstein also reported.
Mike Long, Move’s CEO, said in a statement, "The issues and challenges facing the residential real estate market are creating a permanent dislocation in the offline real estate advertising market with online spending benefiting in the long run."
A replay of the company’s earnings call is available at http://investor.move.com and by phone through Aug. 21 at (888) 286-8010 or (617) 801-6888. The conference identification number is: 99842063.
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