BrokerageIndustry News

Realogy IPO costs weigh on earnings

Q4 revenue up 30 percent

Costs associated with its October initial public offering pushed Realogy Holdings Corp. into the red during the fourth quarter, although adjusted earnings were up 61 percent from a year ago, to $167 million.Realogy's IPO helped the real estate brokerage and franchising giant reduce its debt by $3.1 billion. But the company posted a $292 million fourth-quarter loss after recognizing $400 million in IPO-related costs, $18 million in debt extinguishment charges, and $42 million in depreciation and amortization.Revenue for the quarter was up 30 percent from the same period a year ago, to $1.2 billion, thanks in large part to a 35 percent annual increase in sales volume (transaction sides multiplied by average sale price) at franchised and company-owned brokerages."The strength of the year, and in particular our strong fourth-quarter results, supports the growing consensus of a housing recovery," said Realogy CEO Richard A. Smith in a statement. "The favorable housing trends ...