In Da E-House

Posted on May 17, 2008
Filed Under China Business |

Shanghai-based real estate services company E-House (China) Holdings Limited (NYSE: EJ) reported first quarter revenues of $33.2 million, up 107 percent year-on-year, before market on Thursday. Net income for the company was $8.7 million, up 97 percent year-on-year. Primary real estate agency services brought in $21.9 million of revenue in the period, increasing 72 percent from a year ago. Revenue from secondary real estate brokerage services came in at $2.8 million, up 58 percent year-on-year, while real estate consulting and information services increased 467 percent year-on-year to $8.3 million.

For the second quarter, E-House expects revenues of between $41 million and $44 million.

The consulting and information services includes the China Real Estate Information Circle (CRIC) database that holds real estate transaction data for 30 cities in China. MSN Money has some more details:

…[Zhou Xin, E-House chairman and CEO] Our results in the first quarter were also helped by a substantial increase in consulting and information services revenues as a result of strategic arrangements with leading developers in China, which cover a wide range of consulting services including market analysis research and CRIC information services.”

…We will also continue our initiative to promote paid subscriptions to our CRIC system, which we began in April. We have already signed strategic agreements with several leading real estate developers covering real estate consulting and information services. This will provide a further boost to our real estate consulting and information services revenues for this year.”

…[Cheng Li-Lan, CFO]While primary real estate services will provide solid growth and continue to contribute the largest share of revenues, we expect revenue contribution from real estate consulting and information services to increase substantially this year as compared to recent years. This will also help to slightly reduce the seasonal fluctuations of our revenues.”

Revenues from real estate consulting and information services were $8.3 million for the first quarter in 2008, an increase of 467% from $1.5 million for the same period in 2007. The increase was primarily due to substantial consulting revenue included in strategic arrangements the Company entered into with major developers covering multiple cities and projects.

467% increase? Yow! This is an excellent example of a company that realizes that its operational data also has its own intrinsic, monetary, value.

Comments

One Response to “In Da E-House”

Tom Brady on June 5th, 2008 5:09 am

467%… hmmmm

You move here for 100K, we sell it for 30M… is that what we are talking about, or are these real developers. Of course 1.5M to 8.6M is chump change in Urban Planning Development? Right?

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