Jones Lang LaSalle reported earnings and revenue growth in the second quarter of 2013, boosted by a strong performance by capital markets & hotels in all regions.
Jones Lang LaSalle reported earnings and revenue growth in the second quarter of 2013, boosted by a strong performance by capital markets & hotels in all regions.
Earnings per share edged up slightly to $1.15 on revenue up 8% at $989 mln (€748 mln).
Global revenue generated by capital markets & hotels grew 37%, propelled by a 74% increase at the Asian operations. EMEA followed with an increase of 28% and the Americas with 27%.
The strong EMEA performance was led by the UK and France. However, revenue growth was partially offset by a 10% decline in leasing revenue, particularly in Russia and Germany.
Fee-based operating expenses rose 4% to $221 mln for the quarter, primarily due to the net increase in transactional revenue activity and increased variable operating costs associated with building pipelines for the second half of the year. Adjusted operating income, which excludes King Sturge amortization, slipped to $14 mln compared with $15 mln in the year-earlier period 2012. Adjusted operating income margin calculated on a fee revenue basis was 5.8% compared with 6.6% last year.
In contrast to EMEA and Asia-Pacific, where leasing revenue likewise fell 10%, the Americas held up with a rise of 6%.
Commenting on the results, Colin Dyer, president and Chief Executive Officer of JLL, said: ‘We are pleased with our revenue growth and particularly with the performance of our capital markets & hotels business globally. Leasing results outpaced the overall market despite hesitant corporate occupiers and reduced activity in the BRIC countries. We are moving with confidence into the seasonally strong second half of the year.’