BrokerageIndustry News

Realogy posts $259 million Q1 loss

Cost-cutting can't keep pace with revenue decline

Realogy Corp. posted a $259 million net loss for the first three months of the year, despite cutting $310 million in costs and generating $101 million in additional commission income from new franchise sales.Much of the loss -- $144 million -- was attributed to interest payments on the company's massive debt. But Realogy also saw revenue fall $354 million compared to the same period a year ago, as both home sales and commissions from those sales dropped sharply.At Realogy Franchise Group (RFG) -- which includes the newly launched Better Homes and Gardens Real Estate brand, along with CENTURY 21, Coldwell Banker, The Corcoran Group, ERA, and Sotheby's International Realty -- transaction sides and average home sales price were both down 15 percent.Transaction sides handled by RFG companies (in which agents represented either buyers or sellers), totaled 178,233 during the first three months of the year, down from 209,313 during the same period a year ago, Realogy said in a regulatory fili...