Skift Take
WeWork and IWG will vie for an “asset light” future to recuperate after the pandemic. And with that, branding becomes a lot more essential on the planet of work.
Matthew Parsons, Skift
Co-working area providers see light at the end of the tunnel, regardless of the stop-start return to offices. IWG (Worldwide Work environment Group) published profits of $1.4 billion for the first half of 2021, and a profit of $722 million on an adjusted EBITDA [revenues prior to interest, taxes, depreciation, and amortization] basis. The results are down on the $950 profit in the same period of 2020, however the UK-headquartered company is confident franchising will lead to growth after the pandemic. Join Us at Skift Global Forum in New York City September 21-23 Instead of directly lease structures, IWG can lend its brand prestige, with names like Regus and Spaces and their particular innovation platforms, to other real estate business or buildings. It represents a quicker route to new countries, leaning on regional knowledge. WeWork Menachem Begin Tel Aviv. Picture: WeWork It included 17 brand-new franchise contracts across 10 countries for the 6 months ended June 30, with an additional 64 committed locations, according to its interim first-half outcomes. It likewise included its very first franchise arrangements in the U.S., and participated in a joint venture with Hysan to operate across Hong Kong and the Greater Bay Location (Hong Kong, Macau and Guangdong). “We continue to make development with our franchising and partnering agreements which are main to our capital-light growth method,” stated CEO Mark Dixon.