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Pain Goes on for Serviced Office Operator Regus

LONDON-The latest first quarter results for serviced office operator Regus show the economic downturn is continuing to impact demand for flexible offices. Turnover is down 20% year-on-year and down 7% on the previous quarter.

By Graham Parker | Updated on May 08, 2002

LONDON-Serviced office operator Regus is continuing to be buffeted by the economic storm. Turnover fell 7% on the previous quarter to £110.7 million ($162 million), and is now down 20% year-on-year. And one key measure looks even worse. Revenue per available workstation from established centres was £1,438 ($2,100) over the first quarter, down from £2,393 ($3,494) a year previously.

However, the company insisted that steps taken over the past12 months to halt the slump are paying off. For instance, average contract length has now ceased falling and was steady at 10.8 months in the first quarter. Regus has achieved this by offering customers cash discounts in return for signing up for longer terms.

The development programme has been virtually halted, with the number of workstations growing by just 1% over the quarter to 95,420 workstations across 414 centres in 50 countries, including joint ventures and franchises.

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