These results are a confirmation that the co-working model is not dead. In fact, the demand has well responded to the capacity increase of Servcorp (after 2 years of no capacity growth).
FY 24 results show that earning growth is coming from capacity increase, price rise and expense decrease : - capacity (number of co-working spaces) has increased by 3 % to 4 %, - price increase had an impact of around 4 % on revenues, - while expenses decreased by 1.4 % (despite capacity increase).
Their main cost (lease expense) decreased by 3.5 % as Servcorp is getting more incentives from its owners (who are charging a rent to Servcorp), while "there was a natural decline of lease interest expense through the life cycle of leases". Their second main charge (service expense) remains well controlled : + 2 % (under the capacity increase of 3 to 4 %). Service expense growth is also much lower than their revenue from services (+ 25 %).
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