IWG Plc, the flexible office company that owns the Regus brand, reported its best-selling half-year ever as more companies embraced hybrid working.
(Bloomberg) — IWG Plc, the flexible office company that owns the Regus brand, reported its best-selling half-year ever as more companies embraced hybrid working.
The Zug, Switzerland-based company posted six-month revenue of £1.7 billion ($2.1 billion) on the back of more employers seeking flexible space as their staff work from home for a day or two per week, the company said in a statement Tuesday.
“We have signed almost as many agreements in the first half of 2023 as we did in the whole of 2022,” Chief Executive Officer Mark Dixon said in the statement.
The Covid-19 pandemic prompted a surge of people moving out of city centers in favor of lower cost and greener areas while spending fewer days in the office. That’s now feeding through into shifting demand for shared office space, with companies like IWG capitalizing on a new era of working.
Worka — the company’s digital platform enabling hybrid working — saw revenues increase by almost a third to £153 million in the first half of the year.The company signed an extra 400 new locations in the period, reflecting growing demand for flexible offices.
Still, the company said it was only “cautiously optimistic” about its outlook for the full year, as growing demand is tempered by foreign-currency and economic headwinds. Net financial debt was £54 million lower at £658 million and is expected to decline further by the end of 2023, the company said.
“We continue to be well placed to deliver further revenue, profitable growth and reducing leverage as more companies permanently embrace hybrid working,” Dixon said.
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