Analysts Decrease IWG Revenue Predictions As Inflation Takes Its Toll

IWG recently announced that inflation, the pandemic, and the war in Ukraine could hinder their profits and shares, despite more companies demanding hybrid workplaces.

IWG has joined the ranks of companies that are warning about the impact inflation is having on their business.

The serviced office firm recently announced that inflation, the pandemic, and the war in Ukraine could hinder their profits and shares, despite more companies demanding hybrid workplaces.

This week, IWG’s share price fell over 6% to 238p and is down more than 20% from this time last year.

Inflation has torn through companies large and small, with IWG stating that it is rolling out a franchise operating model to ease the blow.

Due to China’s “zero Covid” policy, IWG has had to close many of its offices in Shanghai, further hampering its revenue stream.

All of this has led investment analysts to decrease their forecasts for the company. For instance, Investec analyst Michael Donnelly reduced his full-year profit prediction for the company from £148 million to £123 million.

“There are two big players in this world: WeWork and IWG. Both are growing their top line, which answers the question of whether it’s the right market to be in” said Donnelly. “But the other question is: what is the cost model to make this work? They’re both figuring that out.”