Regus owner forecasts 2021 profit well below crisis-hit 2020 By Reuters

(Reuters) – IWG on Monday warned that its 2021 core earnings will be well below last year’s crisis-hit level, as continuing lockdown restrictions in some markets and the emergence of new COVID-19 variants delay the office space provider’s recovery.

The dour forecast underlines the challenges facing the industry, with most office buildings remaining deserted as many companies opt for remote work models during the health crisis.

For 2020, UK-listed IWG suffered a 17% slide in adjusted core earnings and took on COVID-19 costs of 389.8 million pounds ($550.24 million). Rival Workspace said last week that a recovery to pre-pandemic levels will take a couple of years.

IWG, however, said it has continued to see “unprecedented demand” for its hybrid work options and that its expectations for a strong recovery in 2022 are broadly unchanged.

The owner of the Regus brand added that in markets where pandemic curbs were easing, including the United States, occupancy was improving, while enquiries touched pre-crisis levels.

($1 = 0.7084 pounds)