Workspace leaser IWG’s revenues surge as firm seeks to capitalise on hybrid working
Serviced office provider IWG today said the move to hybrid working is driving demand for its workspaces after posting “strong” results that saw its revenues increase 25 per cent compared to last year.
The office landlord today said its group revenues for the three months ending on September 30 were 25 per cent higher than the same period in 2021, on the back of surging demand for its “capital light contracts”.
IWG’s capital light contracts see the firm partner with commercial property owners to manage and rent out buildings.
The workspace company said it completed 252 capital light contracts in the first nine months of 2022, representing 90 per cent of all new agreements. The uptick saw IWG’s revenues for the first nine months of 2022 increase 24 per cent to £2.047bn.
IWG chief executive Mark Dixon said “the significant move to hybrid working is driving strong demand for our flexible work products… as businesses all over the world respond to the twin effects of economic uncertainty and their employees’ desire to work flexibly.”
The Jersey registered company said it seeking to capitalise on the “environment of economic and geopolitical uncertainty” by catering to businesses seeking to “reduce their real estate costs and respond to the needs of their employees.”
The firm said it had seen continued improvement in its EBITDA across all regions, with particular growth in suburban and provincial centres.