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Losses for WeWork’s European business more than tripled in 2017 compared to a year earlier, according to new figures released by the company, but one of its early London locations has started making a profit.
WeWork International Limited recorded losses widening from £11M in 2016 to £32M in 2017, according to the Financial Times, even though revenue doubled to £118M. The rising loss was a result of the flexible office firm’s rapid expansion. Staff costs tripled to £19M, occupancy and infrastructure cost rose 60% to £41M and its rent bill rose by 53% to £54M.
It has taken on leasing commitments of around £3.2B in the U.K., where it has 28 open sites and another 14 in its pipeline. Occupancy in the U.K. is 90% and its membership in the country rose 77% to 23,000 in 2017, the company said.
While the European business as a whole is loss making, Moor Place in the City, its largest European facility, with space for 3,000 members, made a profit last year. It opened in 2015 as the third office the company occupied in London. It made a £1.6M pretax profit in 2017, with revenues rising 21% to £25M.
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