A robust housing market and agent count growth nudged Re/Max’s profits higher in the second quarter compared to the previous year, the real estate franchisor reported.

A robust housing market and agent count growth nudged Re/Max’s profits higher in the second quarter compared to the previous year, the real estate franchisor reported.

Re/Max posted net income of $7.5 million in the second quarter, up 8.2 percent year over year, as revenue rose by 12.5 percent to $48.8 million.

Revenue growth was “primarily due to contributions from the acquired independent regions, agent count growth and fee increases in the Company-owned regions,” Re/Max said in a statement.

The company claimed 116,270 agents worldwide, up by 5.7 percent year over year. Its U.S. and Canada combined agent count rose by 2.8 percent to 84,302 agents.

Looking ahead, Re/Max raised its 2017 agent growth forecast, expecting it to rise 4.5 to 5.5 percent over 2017, “driven by agent count growth outside the U.S. and Canada.” That’s up from its previous guidance of 4 to 5 percent.

Total operating expenses came in at $26.0 million for the quarter, up 14.6 percent compared to a year ago.

“This increase was due to additional amortization expense from the acquired independent regions as well as increased selling, operating and administrative expenses, many of which related to the acquired independent regions and the initial investment in Motto,” Re/Max said.

Motto Mortgage is Re/Max’s new mortgage brokerage franchise. Co-CEO Adam Contos cited Motto Mortgage, an initiative that Re/Max has expressed high hopes for, as a lever of growth — along with Re/Max’s ability to expand its network and reacquire independent regions.

Email Teke Wiggin.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription