IWG shares experienced a decline of more than 15% following the release of a disappointing half-year trading update, marking the company's worst day since March 2020. Despite this drop, CEO Mark Dixon insisted the market reaction is irrational and emphasized IWG's strong position. The half-year report indicated potential earnings towards the lower end of the expected range of $525m-$565m. IWG is adapting to flexible working models, moving towards a 'capital light' approach that involves partnerships with property owners to run serviced offices instead of traditional leasing.
IWG's share price dropped over 15% after disappointing half-year results, marking the worst day since the first lockdown in March 2020.
Mark Dixon stated that the share price drop is "not rational" and argued IWG remains in a robust position despite the market reaction.
In its report, IWG predicts full-year earnings will likely be at the lower end of the $525m-$565m range, attributing this to a transitional business model.
IWG emphasizes a shift towards flexible working, stating that the days of being tethered to a central HQ are behind us.
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