Colliers International’s EMEA revenue has dropped by 19% year-on-year, with reduced activity seen across all of its service lines during the pandemic.
The agent has also warned it may turn to “further cost management measures” across the group to “maintain business continuity”. Restructuring costs for the year, largely relating to severance pay, grew to $29.6m (£21m) during 2020, from $6.9m in the previous year.
The company received $34.9m from various government wage subsidies during the year.
EMEA region revenues totalled $516.5m in the year ending December, compared with $636.5m in the previous year.
Adjusted EBITA for the EMEA business plummeted by 42.8% to $45.9m, while GAAP operating earnings tumbled to just $8.3m, from $48.5m in 2019.
Full-year revenue for the group was down 9% to $2.8bn during 2020, while adjusted EBITDA edged up 1% to $361.4m.
Group revenue from leasing activities experienced the worst decline during the year, falling by 27% to $686.5m. Capital markets revenues dropped by 10% to $700.9m.
The lion’s share of group revenue came from its outsourcing and advisory activities, which grew 7% to $1.2bn.
During Q4 the EMEA business generated $182.5m revenue, down 19% on the previous year. Adjusted EBITDA declined by 30.5% year-on-year.
Total revenue across the group for the fourth quarter dipped by 2% to $913.7m, with a 7% rise in adjusted EBITDA to $154.9m.
Its Q4 performance was helped by acquisitions made in the US, with “modest internal revenue growth” in its outsourcing and advisory and capital markets businesses.
Colliers said it expects transactional revenues will rebound in the second half of the year, with revenues from outsourcing and advisory and investment management to “remain resilient” throughout.
Its guidance for the year ahead outlined expectations for 10-25% growth in revenue and 10-25% growth in adjusted EBITDA.
Jay Hennick, global chairman and chief executive of Colliers, said: “Colliers delivered better than anticipated financial results for our fourth quarter and full year 2020, despite the ongoing impact of the global pandemic.”
He added: “During 2020, despite many challenges, we continued to invest with a long-term perspective adding Colliers Mortgage and Colliers Engineering & Design, two new platforms that performed better than expected and offer additional growth opportunities in the future.”
To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette
