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IWG Plc Q1 Group Revenue Up 12.7% - Quick Facts

Office solutions firm IWG Plc (IWG.L) reported Wednesday that first-quarter group revenue increased to 658.3 million pounds from 583.9 million pounds last year.

At actual rates, Group revenue increased 12.7% in the first quarter, reflecting currency tailwinds, primarily from the U.S. dollar and some currencies in Asia Pacific. Group revenue increased 10.6% at constant currency.

In its trading statement for the three months ended March 31, 2019, the company said that overall open centre revenue growth, across all centres, for the quarter was 15.1% at constant currency.

This constant currency improvement was driven by double digit revenue growth in the Americas, Asia Pacific and EMEA. In EMEA, the performance of larger countries, including France, Germany and Spain, which contributed very strongly.

The company noted that while the UK experienced a small decline in total revenue due to the annualised impact of network rationalisation, like-for-like revenue from open centres has continued the positive improvement noted in the fourth quarter of 2018.

IWG noted that the first-quarter performance has provided a good start to the year and is in line with its expectations. The strong sales activity has translated into improved occupancy, driving good constant currency pre-2018 revenue growth and increased gross profit margin, IWG said.

As anticipated by the company, the improvement in pre-2018 (formerly known as mature) revenue growth has continued. Pre-2018 occupancy also improved year-on-year, up 4.2 percentage points on a like-for-like basis to 75.4%.

Looking ahead, IWG said it remains very confident in the structural, long-term growth in the flexible workspace market and the company's leading position within it.

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