IWG posts double-digit revenue growth for Q1

IWG has reported a 10.6% revenue increase to £658.3m for the first three months of 2019, compared with the first quarter last year on a constant currency basis. At actual rates the group’s revenue rose by 12.7% but it was affected by currency tailwinds from the US dollar and some currencies in Asia Pacific. In a trading update, the serviced office provider added that the revenue of its open centres also grew by 15.1% on a constant currency basis. IWG said the double-digit revenue growth was affected by a small decline in total revenue in the UK, which it attributed to the annualised impact of network rationalisation. It added that like-for-like revenue from open centres has continued the positive improvement noted in Q4 2018. IWG’s net debt also increased to £534.1m on 31 March 2019, up from £460.8m on 31 December 2018. The group also reported that pre-2018 occupancy also improved year-on-year, up by 4.2 percentage points on a like-for-like basis to 75.4%. During the first quarter IWG also added 55 new locations to its roster, equating to 1.5m sq ft of space. The trading update follows its announcement last month that it had sold all of its operations in Japan to TKP Corporation for £320m and entered into a franchise deal with the Tokyo Stock Exchange-listed firm. IWG said it expected to receive the £320m later this month. To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette