Wework rival IWG boosts revenue as franchise business expands
Wework rival IWG boosted revenue in the third quarter as the flexible office space provider built momentum with its expansion plans and international franchise business.
IWG reported a 9.4 per cent increase in revenue to £692.3m in the three months to 30 September, driven by the Europe, Middle East and Africa (EMEA) and US markets.
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During the third quarter the co-working space company added 66 new organic locations to its network with net growth capital investment of £64.4m.
So far this year IWG has added 180 new locations, and is mulling growing the business through further merger and acquisition deals following its purchase of Clubhouse this year.
“Where it makes strategic sense, we are ready to use our strong financial position to undertake such activity,” the company said.
Yesterday, IWG added it had entered into a strategic partnership for a master franchise agreement in Switzerland, bringing the total number of franchise partners to 27 across 22 countries.
IWG said: “We remain very confident in the structural, long-term growth in the flexible workspace market and IWG’s leading position within it, which we continue to extend. “
It added: “We believe our transition to a franchising model by partnering with a growing and diverse range of third parties will deliver a quicker and more asset light approach to growth, which benefits all stakeholders.
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“We are making excellent progress in shaping the business to benefit from this significant growth opportunity. We continue to invest in our leading global platform and management to support our strategy and look forward to the rest of the year with confidence.”
Main image credit: Getty