Office space inquiries were back to pre-Covid levels during the first quarter as per IWG as the biggest provider of workspace in the world was able to benefit from the increase of demand for hybrid work solutions.
The company, previously named Regus, has added record 900 new customers during the first quarter and also saw an “very strong recovery” in meeting rooms and day office utilization in the second quarter , as the company began to see an improvement from the pandemic.
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The revenue from hiring day offices and meeting rooms rose 40% between 1st and 2nd quarter of this year after lockdowns came an end and companies adopted new work patterns that incorporate hybrids that allow employees to divide their time between home and their office desks but not necessarily in their corporate headquarters.
“The significant move to hybrid working has created unprecedented demand for our flexible work products,” stated Mark Dixon, the chief executive officer of IWG.
The company is witnessing the beginnings of a improvement in profitability, the company’s profit improved every months of the quarter the losses topped PS172m during the first half of the year. The same time the year before, IWG had the company suffered a PS238m loss.
Total revenue declined by nearly five percent to PS1.06bn after the company announced an PS39m cost due to the impact of Covid-19. The company also said its goal was to cut expenses for business by PS320m as compared to prior to the outbreak.
IWG is a competitor to WeWork and WeWork, has said that the growth was driven by US even with the Americas which is the largest area, taking the biggest to hit in terms of revenue, dropping nearly a quarter the first half of the year.
Europe and the Middle East and Africa was the region with the highest growth revenue was down only 2.5 percent year-on-year. UK Revenues were 18.5 percent less.
“Since the announcement of easing restrictions in March, demand for more distributed working has increased sales in many of the satellite towns and cities outside of London, and more recently also in CBD (central business district) London,” the company stated.
“Inquiries are on the rise as is sales convertion increasing. The retention rate is increasing and is at its highest since the outbreak began. pandemic.”
Within the UK, IWG said occupancy of its venues reached 67.7 percent of levels pre-pandemic and the the demand for meeting rooms “coming back strongly” in June.