Office rental firm IWG, with an extensive global presence and notable clients such as Microsoft and Disney, is evaluating the possibility of changing its reporting currency from IFRS to US GAAP. As the majority of IWG's revenue is tied to the U.S. dollar and given the recent volatility of the British pound, the company seeks to adapt its reporting practices. This move reflects the evolving landscape of international business transactions and financial standards.
IWG, a company specializing in office rentals, maintained a "carefully hopeful" perspective following a 48% increase in profit for the first half of the year. This growth was driven partially by strong demand for its office spaces and better pricing. As companies embrace hybrid work models, in which employees work from the office on specific days, office property owners are gradually rebounding from the challenges brought about by the pandemic.
In a statement, the company expressed a "prudently hopeful" perspective for the entire year, considering the increasing need for hybrid work solutions alongside currency-related challenges and a tough economic and competitive landscape.The company, listed in the UK and responsible for brands like Spaces and Regus, revealed that adjusted core profit from ongoing operations for the first half of the year, concluding on June 30, saw a 48% rise on a consistent currency basis, amounting to 198 million pounds ($252.6 million).
IWG, based in Switzerland, reported that its system-wide revenue for the first half of the year, encompassing revenue from both franchise and joint-venture partners, increased by 16% to reach an all-time high of 1.68 billion pounds.The digital platform Worka, facilitating hybrid work, experienced a remarkable 32% surge in revenue, totaling 153 million pounds.Investec analysts commented in a note that the positive operational and financial advancements evident in the current results are highly promising, despite challenges like foreign exchange fluctuations and a demanding economic and competitive landscape.
IWG, boasting a network of over 4,000 workplaces across 120+ nations and serving clients including Microsoft, Disney, Samsung, and HSBC, has begun examining its reporting currency and the potential effects of adopting US GAAP instead of IFRS for reporting. This evaluation was prompted by the fact that a significant portion of the group's revenue is generated in or linked to U.S. dollars, and due to the recent fluctuations in the value of the British pound.
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