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SEC Filings

10-Q
JONES LANG LASALLE INC filed this Form 10-Q on 11/06/2017
Entire Document
 

EMEA - Real Estate Services (continued)
 
 
 
 
 
% Change
 
Nine Months Ended September 30,
Change in
in Local
($ in millions)
2017
2016
U.S. dollars
Currency
Leasing
$
184.4

171.3

13.1

8
 %
11
 %
Capital Markets & Hotels
266.5

245.4

21.1

9

13

Property & Facility Management
628.5

314.0

314.5

100

n.m.

Property & Facility Management Fee Revenue
479.5

238.5

241.0

n.m.

n.m.

Project & Development Services
471.7

478.0

(6.3
)
(1
)
1

Project & Development Services Fee Revenue
156.0

146.2

9.8

7

9

Advisory, Consulting and Other
176.0

164.7

11.3

7

11

Total revenue
$
1,727.1

1,373.4

353.7

26
 %
32
 %
Gross contract costs
(464.7
)
(407.3
)
(57.4
)
14

18

Total fee revenue
$
1,262.4

966.1

296.3

31
 %
37
 %
Compensation, operating and administrative expenses excluding gross contract costs
1,247.6

941.6

306.0

32

40

Gross contract costs
464.7

407.3

57.4

14

18

Depreciation and amortization
33.0

25.6

7.4

29

37

Total operating expenses
$
1,745.3

1,374.5

370.8

27
 %
33
 %
Operating loss
$
(18.2
)
(1.1
)
(17.1
)
n.m.

n.m.

Equity losses
$

(0.1
)
0.1

100
 %
100
 %
Adjusted EBITDA
$
14.8

24.1

(9.3
)
(39
)%
(61
)%
n.m. - not meaningful
EMEA revenue for the third quarter grew in all service lines over 2016, primarily due to incremental Property & Facility Management revenue from our August 2016 acquisition of Integral. Strong growth in Capital Markets & Hotels reflects notable contributions from investment sales in Finland, the UK, and Germany, while Project & Development Services fee revenue growth was most prominent in MENA (Middle East, North Africa) and France. For the nine months ended September 30, 2017, incremental revenue from Integral contributed over 80% of EMEA revenue growth over 2016 (nearly 90% of EMEA fee revenue growth), supplemented by the growth in Capital Markets & Hotels noted above.
For the three and nine months ended September 30, 2017, the increase in operating expenses and fee-based operating expenses as compared with the same periods in 2016 was due to Integral and continued increases to investments in data, technology, and people.
Adjusted EBITDA margin, calculated on a fee-revenue basis, was 3.0% in USD (2.7% in local currency) for the third quarter of 2017, as compared with 2.3% last year. The increase in profitability primarily reflects revenue performance for the quarter and management initiatives to contain expenses, partially offset by the continued integration of Integral and increased investments as noted above.

41


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