{"id":268579,"date":"2021-06-07T17:44:00","date_gmt":"2021-06-07T14:44:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/covid-19-problems-havent-left-the-building-worlds-biggest-office-workspace-group-warns-on-profits\/"},"modified":"2021-06-07T17:44:00","modified_gmt":"2021-06-07T14:44:00","slug":"covid-19-problems-havent-left-the-building-worlds-biggest-office-workspace-group-warns-on-profits","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/covid-19-problems-havent-left-the-building-worlds-biggest-office-workspace-group-warns-on-profits\/","title":{"rendered":"#\n  COVID-19 problems haven\u2019t left the building. World\u2019s biggest office-workspace group warns on profits."},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3ea5cbb85c2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3ea5cbb85c2\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/covid-19-problems-havent-left-the-building-worlds-biggest-office-workspace-group-warns-on-profits\/#Business_seeing_%E2%80%98unprecedented_demand_for_flexible_working_packages_says_IWG\" >Business seeing \u2018unprecedented demand\u2019 for flexible working packages, says IWG<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/covid-19-problems-havent-left-the-building-worlds-biggest-office-workspace-group-warns-on-profits\/#Lina_Saigol\" >Lina Saigol<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  COVID-19 problems haven\u2019t left the building. World\u2019s biggest office-workspace group warns on profits.<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Business_seeing_%E2%80%98unprecedented_demand_for_flexible_working_packages_says_IWG\"><\/span>\n  Business seeing \u2018unprecedented demand\u2019 for flexible working packages, says IWG<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\">\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000296557\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Shares in IWG plunged more than 15% on Monday, after the world\u2019s largest flexible-office company warned that underlying earnings in 2021 will be \u201cwell below\u201d the previous year\u2019s levels, as COVID-19 lockdowns and the emergence of new variants of the virus that causes the disease continued to hit its operations.<\/p>\n<p> But the FTSE-250-listed owner of the Regus brand said it expected a \u201cstrong recovery\u201d in 2022, citing unprecedented demand for flexible work products as companies adopt hybrid working.<\/p>\n<div class=\"paywall\">\n       <strong>Read:<\/strong> WeWork loses $2.1 billion in a quarter<\/p>\n<p>IWG said it had seen \u201cpositive momentum\u201d in some markets, such as the U.S., where COVID-19 pandemic restrictions were being relaxed, and that inquiries had reached pre-pandemic levels. But the company said that overall improvement in office occupancy has been lower than expected, and as a result, it expects underlying group earnings before interest, tax, and amortization to be <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.investegate.co.uk\/iwg-plc--iwg-\/rns\/trading-update\/202106070700119525A\/\" class=\"icon none\">well below<\/a> the \u00a3133.8 million ($189.19 million) it reported in the previous year.<\/p>\n<p>Shares in IWG<br \/>\n        IWG,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207263311\/delayed\" class=\"negative\">-8.95%<\/bg-quote><br \/>\n       dropped 15.85% in early morning London trading on Monday. The stock has fallen 10.11% so far this year, according to FactSet.<\/p>\n<p><strong>Read:<\/strong> Goldman Sachs CEO: Working from home is an \u2018aberration\u2019<\/p>\n<p>Flexible-office providers such as IWG have been hit hard by the pandemic, which has dramatically accelerated the shift to remote working. Last week, rival Workspace Group<br \/>\n        WKP,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202365277\/delayed\" class=\"positive\">+0.28%<\/bg-quote><br \/>\n       said that a recovery to pre-pandemic levels will take a couple of years. Both companies offer shorter, more flexible lease terms to customers than traditional office providers, leaving them vulnerable as companies have pared back office space over the past year.<\/p>\n<p>RBC Capital analysts said the working-from-home trend is likely to be a continuing feature, and there is a risk that many previous customers won\u2019t require\u00a0IWG\u2019s services at all going forward, whilst there is a risk of oversupply of office space in many major cities,\u00a0for example\u00a0London. <\/p>\n<p>\u201cWhilst there is scope for a material rebound in occupancy off a much lower cost base post all the network rationalization, ultimately, the\u00a0group\u00a0needs to deliver on material master-franchising deals to demonstrate upside value in the\u00a0group, reducing capital employed and justifying a higher long-term multiple,\u201d said the analysts in a research note to clients on Monday.<\/p>\n<p>IWG, which recently signed deals with companies including Japanese telecoms group NTT<br \/>\n        NTTYY,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209263673\/delayed\" class=\"positive\">+1.20%<\/bg-quote><br \/>\n       and U.K. bank Standard Chartered<br \/>\n        STAN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/200125072\/delayed\" class=\"positive\">+0.91%<\/bg-quote><br \/>\n       for hybrid working services, said it was making good progress on larger, master-franchise agreements, with several in the final stages of discussions.<\/p>\n<p>Although some companies \u2014 such as customer relationship management platform Salesforce<br \/>\n        CRM,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/200515854\/composite\" class=\"positive\">+0.78%<\/bg-quote><br \/>\n       and music streaming platform Spotify<br \/>\n        SPOT,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207488629\/composite\" class=\"positive\">+1.55%<\/bg-quote><br \/>\n       \u2014 have announced that their staff members would be allowed to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/hrblog.spotify.com\/2021\/02\/12\/introducing-working-from-anywhere\/\" class=\"icon none\">work from home permanently <\/a>in the future, others, such as Goldman Sachs<br \/>\n        GS,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209237603\/composite\" class=\"negative\">-0.63%<\/bg-quote><br \/>\n       and JPMorgan<br \/>\n        JPM,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205971034\/composite\" class=\"negative\">-0.72%<\/bg-quote><br \/>\n       have started to call their workers back to the office, citing lost collaboration and an inability to train junior staff members, as they have remained home for more than a year.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Lina Saigol\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Lina_Saigol\"><\/span>Lina Saigol<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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World\u2019s biggest office-workspace group warns on profits. &#8221; Business seeing \u2018unprecedented demand\u2019 for flexible working packages, says IWG Shares in IWG plunged more than 15% on Monday, after the world\u2019s largest flexible-office company warned that underlying earnings in 2021 will be \u201cwell below\u201d the previous year\u2019s levels, as&#8230;<\/p>\n","protected":false},"author":1,"featured_media":268580,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-268579","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/268579","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=268579"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/268579\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/268580"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=268579"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=268579"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=268579"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}