Comments on: Regus Revenue Remains Nearly Flat in First Half of 2009

By: Jennifer LeClaire

Jennifer LeClaire — Wed, 26 Aug 2009 15:02:36 +0000

@Simon… thanks for your insights. Great stuff!

By: Simon

Simon — Wed, 26 Aug 2009 12:50:11 +0000

Great post.

@Elizabeth Sanchez I don’t think the new centers would upset the overall average occupancy levels, as Regus have over 1,000 centers now.

@Milke agree that Regus make a lot from the VO product, for them it is nearly pure profit as the centers and staff are already in place. Remember also they make millions from meeting room bookings, another thing that is highly profitable for them.

Dixon is being typically bullish. Falling profit is bad for any company despite more bums on seats, more centers and more revenue, the bottom line is profit. Their costs have been going up and their revenue per workstation has been falling. That is the key, office space prices have been falling globally – nothing the company can do about that.

Regus have improved their strategy over the last year, trying to focus on start up and SME’s (a group the company willfully ignored in the past in my opinion) with the Get Started campaign.

However given that most companies involved in commercial property have lost money over the last 2 years, Regus have done well not have had a bigger cut in profits.

By: Melanie Jones

Melanie Jones — Tue, 25 Aug 2009 17:44:24 +0000

Dixon is really spinning is, isn’t he? He’s definitely got his public company CEO hat on. But there should be some explanation other than a challenging economy to explain Regus down numbers. It’s great to focus on the future of the serviced office industry, but it’s vital to also focus on the here and now. If you aren’t renting your office space, then you’re in trouble!

By: Bill Brookshire

Bill Brookshire — Tue, 25 Aug 2009 16:50:04 +0000

It’s tough as a public company with all the transparency. Everything Regus does is under a microscope. I am not sure if that’s good for the serviced office industry or not. I mean, it’s not as if “as Regus goes, so goes the industry.” I am not sure what to make of the low occupancy, either. Could be so much competition coming into the market. I have long considered how coworking might be impacting things. It’s got to be the least expensive option, though the privacy is zilch.

By: Elizabeth Sanchez

Elizabeth Sanchez — Tue, 25 Aug 2009 16:35:09 +0000

Looks like Regus has hit on some economy issues of its own. I wonder if the occupancy issue is because there are so many new business centers that launch with close to zero percent occupancy. Could that be dragging down the average? Regus is a strong brand. I am surprised that they aren’t doing better, especially with all the alliances they have going on.

By: Mike Sullivan

Mike Sullivan — Tue, 25 Aug 2009 13:54:27 +0000

In the Americas, Regus is at 80.3% occupancy, down 4.3% from the first half of last year. 80% occupancy is low in this business. Unless you own a building outright or have exceptional terms, you have to make up the low occupancy and rate somewhere to remain profitable. Luckily for Regus, their virtual office business seems to be growing and they have done many things to reduce risk. I sure hope others are doing the same…