Colliers International Group Inc. (NASDAQ:CIGI) Q2 2023 Earnings Call Transcript August 2, 2023 11:00 AM ET
Company Participants
Jay Hennick - Global Chairman & CEO
Chris McLernon - CEO, Real Estate Services
Christian Mayer - CFO
Conference Call Participants
Steve MacLeod - BMO Capital Markets
Stephen Sheldon - William Blair
Frederic Bastien - Raymond James
Jimmy Shan - RBC Capital Markets
Maxim Sytchev - National Bank Financial
Operator
Welcome to the Colliers International Second Quarter Investors Conference Call. Today's call is being recorded. Legal counsel requires us to advise the discussion scheduled to take place today may contain forward-looking statements that involve known and unknown risks and uncertainties. Actual results may be materially different from any future results, performance or achievements contemplated in the forward-looking statements.
Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the company's annual information form as filed with the Canadian Securities Administrators and in the company's annual report form 40-F as filed with the US Securities and Exchange Commission. As a reminder, today's call is being recorded. Today is August 2, 2023.
And at this time, for opening remarks and introductions, I would like to turn the call over to the Global Chairman and Chief Executive Officer, Mr. Jay Hennick. Please go ahead, sir.
Jay Hennick
Thank you, operator. Good morning, and thanks to everyone for joining us for this second quarter conference call. I'm Jay Hennick, Chairman and Chief Executive Officer of the company. With me today is Chris McLernon, Chief Executive Officer of our Real Estate Services business, and Christian Mayer, our Chief Financial Officer.
As always, this call is being webcast and is available on the Investor Relations section of our website, along with the presentation slide deck. During the second quarter Colliers experience strong growth in recurring revenues, which contributed 65% of our adjusted EBITDA. Having such a large percentage of recurring revenue highlights our balanced and resilient business model, enables us to withstand market fluctuations and truly sets us apart from the others.
Once again, investment management and outsourcing and advisory experienced robust growth during the quarter, while capital markets, and to a lesser extent, leasing, declined versus the prior year, a record quarter. As everyone knows, lower interest -- lower interest rates have -- lower investment volumes, sorry, have been caused by rising interest rates, challenging debt availability and continued price discovery, which we expect will quickly rebound once conditions stabilize. Since the rest of our business has been performing well, we're maintaining our financial outlook for the year, as Christian will elaborate on.