UPDATE 1-Regus says new investments to dent full-year results
Oct 29 (Reuters) - Office space supplier Regus Plc reported a 26 percent rise in third-quarter revenue, but said full-year results would be hurt by the additional investments it was making to open new centres.
The company, which provides meeting rooms, business lounges and office spaces for rent, said it now planned to open between 420 and 440 new centres, up from its previous estimate of 350 centres.
Analysts at Goldman Sachs and Panmure Gordon cut their full-year earnings-per-share estimates for the company by 14 percent.
"The higher number of centre openings has a 14 million pound negative impact on our operating profit estimates as we expect them to initially make a negative contribution..." Goldman Sachs analyst Charles Wilson said in a note.
Wilson, however, retained a "buy" rating on the stock and said the shares provide "good exposure to a global cyclical recovery, despite the short-term cut to earnings".
Analysts on average expect full-year revenue of 1.55 billion pounds and pretax profit of 99.2 million pounds, according to Thomson Reuters I/B/E/S.
Shares in the Luxembourg-headquartered company fell more than 6 percent. The stock was trading down about 4.1 percent at 196.3 pence at 1032 GMT, making them one of the top losers on the FTSE-250 Midcap Index.
Regus said group turnover in the third quarter ended Sept. 30 rose to 386.6 million pounds ($623.63 million) from 307.3 million pounds last year.
Regus, whose customers include GlaxoSmithKline Plc, Google Inc and Toshiba, said revenue per occupied workstation (RevPOW) -- a key metric in the space rental business -- increased 4.3 percent to 1,920 pounds.
The company's first-half profit had dropped 3 percent due to restructuring costs related to the acquisition of MWB Business Exchange Plc in February.
- Thai PM calls snap election, protesters want power now |
- North Korea says Kim's powerful uncle dismissed for 'criminal acts'
- Protesters fell Lenin statue, tell Ukraine's president 'you're next'
- Venezuela's Maduro to raise pressure on business after local vote
- Singapore hit by rare outbreak of rioting, 27 arrested |