WeWork sees losses widen at one of its UK subsidiaries
Losses at one of troubled offices giant WeWork’s UK firms ballooned last year, new accounts showed on Friday.
WeWork International, a holding company which looks after internal costs for UK and Europe properties, such as payroll and marketing, made a £75.9 million pre-tax loss in 2018, compared with a £7.6 million loss a year earlier.
It was hit by costs linked to expansion. Revenues, however, surged 90% to £35.8 million.
The results do not include rental income from buildings. The firm has filed separate accounts that show three London buildings each made profits of over £1 million.
WeWork International’s “financial performance is not a representation of the health and profitability of the overall UK business”, the company said.
WeWork, known for its free beer and hipster start-up tenants, has had a turbulent 2019.
It was previously valued at $47 billion but doubts about the firm’s business model have surfaced, and in recent weeks it shelved plans for a New York float.
