WeWork’s European expansion continues amid mixed success, at least according to the books.
The co-working company’s losses in Europe tripled in 2017, according to the Financial Times. The reasons appear to stem from costs related to staffing–which tripled– infrastructure and rent. The latter of which both rose 60 percent and 53 percent respectively, and are tied to the acquisition and fit-out of new spaces across the continent.
In the same time period, however, revenues in the U.K. doubled to about $155 million. (No other European businesses were included in the company’s reporting of its revenues.)
In London, WeWork has leased more than 3 million square feet making it the city with the company’s second-largest footprint. New York is WeWork’s largest market–the company is now the largest tenant in the city with more than 5.3 million square feet leased. In the British capital, WeWork has committed to almost $4 billion in leases despite the risk Brexit poses.
Earlier in the year, a glimpse of WeWork’s financials revealed the company doubled its revenues to $866 million last year while losses mounted to $933 million. The company is known to keep its finances under wraps–so much so that in August Moody’s announced it would no longer rate WeWork due to insufficient information. [FT]–Erin Hudson