- IWG share plummeted after the half-year results.
- Its revenue increased by 22.3% Y/Y amid continued hybrid work growth.
- Market players remain concerned about the firm’s growth.
IWG’s share price declined on Tuesday. The drop emerged after the WeWork rival announced weak earnings. Meanwhile, the stock plunged towards the 157.85 lows, the lowest mark since April 2020. Moreover, it crashed by more than 63% from 2020’s highest level.
IWG Losses Increase
IWG is a top British firm that provides co-working solutions globally. The company’s brands include Signature, No18, Regus, and HQ. Meanwhile, it targets individuals and companies in all industries. IWG clients include firms such as Disney, Blackrock, Microsoft, and Accenture.
IWG boasts a significant market share within the market that has saturated lately. Companies such as WeWork have dominated the market share, whereas most leading landlords form co-working spaces.
Meanwhile, IWG revealed that the firm’s system-wide revenue increased by 22.3% Y/Y in 2022 first half. The hybrid working space resolutions contributed to the increase. Moreover, its EBITDA increased to 122.9 million pounds, higher than the previous year at 5.4 million pounds.
Nevertheless, the company continued to make losses. For instance, its adj. loss after tax stood at 81.3 million pounds. These results matched WeWork’s, which recorded a massive loss in Q2 2022.
The firm’s CEO stated that IWG’s digital assets’ integrations fared well. He added that the digital platform has added top brands like Coworker and Davinci and anticipated more consolidation opportunities.
Should you buy IWG stock? The firm encounters substantial headwinds as business operation costs remain elevated globally. Moreover, most firms are reducing their running costs. And that might trigger slow recoveries. The firm’s occupancy rate hiked to 74.9%.
IWG Share Price Prediction
The 24hr chart shows the IWG stock maintained massive bearishness over the last few months. The downside intensified when the stock moved beneath its crucial 211p support.
Also, IWG dropped beneath the 25 and 50 MAs. The RSI suggests downtrends. Thus, the share will likely keep plummeting as it has lost the crucial support of 178p. The next level to watch stands at 150p.