Connect with us

Hi, what are you looking for?


Regus owner’s shares slide as COVID-19 curbs, variants slow recovery

Stock Markets15 minutes ago (Jun 07, 2021 04:15AM ET)

(C) Reuters. FILE PHOTO: A bus drives on an almost empty street, following the outbreak of the coronavirus disease (COVID-19), in the financial district of London, Britain July 17, 2020. REUTERS/Hannah McKay/File Photo

(Reuters) – Office space provider IWG warned on Monday that its 2021 core earnings will be well below last year’s crisis-hit level as continuing curbs in some markets and new COVID-19 variants derail recovery, sending its shares as much as 16% lower.

The grim forecast in an unscheduled trading update underlines the challenges facing an industry that has seen occupancy levels plummet as a shift to remote working during the health crisis emptied out many office buildings.

Shares in the Regus owner were 15% lower at 310 pence by 0741 GMT, heading for their worst one-day drop since March last year.

IWG and its rivals have to some extent pinned their hopes on offering work spaces that would align with a permanent shift to a flexible working model, dividing week days between the office and home.

IWG, which has already signed deals with companies including bank Standard Chartered (OTC:SCBFF) for hybrid working services, said on Monday it was making good progress on larger master franchise agreements, with several in the final stages of talks.

For 2020, IWG suffered a 17% slide in adjusted core earnings and took COVID-19 costs of 389.8 million pounds ($550.24 million).

Rival Workspace has warned that a recovery to pre-pandemic levels will take a couple of years.

“For it (underlying core profit) to be ‘well below’ is remarkable, when Q1 commentary was upbeat, occupancy troughed in February and price was supposed to be moving up,” Peel Hunt analysts wrote.

“There is no question that this is disappointing.”

IWG said it still expects a strong recovery in 2022, adding it has continued to see “unprecedented demand” for its hybrid work options.

The company said occupancy was improving in markets where pandemic curbs were easing, including the United States, while enquiries touched pre-crisis levels.

Softbank-backed office-sharing startup WeWork, which posted a first-quarter loss of more than $2 billion as it prepares to go public, also said last month it was starting to see signs of a recovery as more people returned to the office.

($1 = 0.7084 pounds)

Regus owner’s shares slide as COVID-19 curbs, variants slow recovery

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like

World News

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered...

World News

George Soros and Bill Gates are part of a consortium acquiring a British developer of rapid-testing technology, including for Covid-19 and tropical diseases,...


If you parked your car in one of the thousands of parking spots across Calgary, there’s a good chance you paid the Calgary Parking...

World News

Every gambler has their own way. Some people like playing poker, whereas others enjoy the excitement of rotating the wheel. Some people prefer...

Disclaimer: it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. Copyright © 2021 Your Morning Voice. All Rights Reserved