(Reuters) -Global office rental firm IWG reported a 34% jump in annual core profit on Tuesday, buoyed by increased demand for its flexible working spaces and pricing strength, and forecast 2024 earnings in line with its expectations.
Landlords have seen a gradual growth in the utilisation of their office spaces since mid-2023 as tenants increasingly scrap pandemic-induced permanent remote working plans and employees switch to a hybrid-work model by being in the office for a specific number of days in a week.
“While 2023 was a record year for both revenue and network size, we continue to see significant growth potential,” CEO Mark Dixon said in a statement.
The Switzerland-headquartered firm, which operates in more than 4,000 locations across over 120 countries, said annual group revenue rose 8% to 2.96 billion pounds ($3.75 billion).
The London-listed owner of the Spaces and Regus brands said core profit came in at 403 million pounds for the year ended Dec. 31, compared with LSEG average analysts’ estimates of 397.6 million pounds.
($1 = 0.7888 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Sohini Goswami)
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