Regus Parent Company IWG Sees Record Revenue As Profits Jump

Photo credit: Courtesy of IWG
Iwg Has Expanded Globally Through Its Capital Light Model.

Flexible office company IWG clocked record-high revenue and a dramatic rise in new agreements for office space in Q2 as the demand for coworking space pressed on.

"We continue to grow as expected, producing a record period for IWG with our highest ever revenue in our over 30-year history, up 14% from the first half of 2022," IWG CEO Mark Dixon said in a statement.

The company's operating profit jumped by 154%, to about $102M. IWG's various coworking brands signed almost as many agreements in the first half of 2023 as it did in all of 2022, Dixon said.

Average total occupancy at IWG's offices increased 30 basis points year-over-year to 73.7%, according to financial records.

The Switzerland-based company's digital platform Worka saw revenues increase by almost one-third to $195M in the first six months of the year, Bloomberg noted. Worka signed up 400 new locations in that period. The company also said landlords are coming to it to fill spaces while tenants continue to balk at signing longer-term leases, according to Bloomberg.

Companies that allow staff to work remotely at least one day per week increased their workforce at almost twice the rate of those with full-time office requirements in the 12 months ending in May, The Wall Street Journal reported earlier this month.

Despite the positive news halfway through the year, the company's outlook for the full year is "cautiously optimistic" due to potential financial headwinds and a competitive environment for coworking and flexible office, IWG said in a statement about its midyear earnings.

The other big name in coworking spaces, WeWork, is not having such a positive first half of 2023. The company's CEO, Sandeep Mathrani, abruptly resigned in May and it is facing lawsuits related to back rent and overdue loan payments. WeWork releases its Q2 financials Wednesday.

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