WeWork said on Thursday that it has successfully reduced its rate of cash burn by almost 50% as compared to the start of the year. It also announced to have secured an additional £840 million financing from SoftBank Group Corp (TYO:9984) that currently has a majority stake in WeWork. Previously, SoftBank had pulled out of a £2.41 billion tender offer in April that had left WeWork in crisis.
Shares of SoftBank lost roughly 1.5% on Friday. The Japanese conglomerate closed the regular session at £45.34 per share versus its year to date low of £19.26 per share in March when the impact of COVID-19 was at its peak. Having a hard time choosing an online stockbroker to start trading? Here’s a top few to choose from.
WeWork concludes Q2 with £3.13 billion of cash
In an email sent to WeWork’s employees, the company acknowledged the impact of the ongoing Coronavirus pandemic on its Q2 results, but expressed confidence in its robust financial position that it said was sufficient to combat the economic blow. SoftBank also published its financial results earlier this week that recorded £9.00 billion of net profit in the fiscal first quarter.
At £673.23 million, WeWork’s revenue in the fiscal second quarter came in 9% lower as compared to the same quarter last year. In the prior quarter, however, the shared workspace provider had registered an even higher £840 million of revenue. Its cash burn at the end of Q1 stood at £267.91 million.
The American commercial real estate company boasted to have concluded the second quarter with £3.13 billion of cash. The figure also accounts for the new £840 million financing from SoftBank and other unfunded cash commitments.
