IWG reports record revenue as workers return to the office
Hybrid work specialist IWG has reported record revenue as it continued to benefit from workers’ return to the office in the first six months of the year.
The London-listed firm generated $2.1bn (£1.65bn) in system-wide revenue, its highest-ever total during the period. On an adjusted basis, earnings before interest, taxation, depreciation, and amortisation (EBITDA) also grew 13 per cent to $274m (£215m).
Room signings rose 19 per cent year-on-year. IWG said it currently has 154,000 rooms open and a pipeline of 151,000 rooms signed but not yet opened.
“The first half of 2024 produced good year-on-year open-centre revenue growth. We are delivering on our capital-light growth plan,” Mark Dixon, Chief Executive of IWG plc, said.
“Momentum continues in signings, and importantly openings, and we are delighted to return to positive earnings. We remain committed to our strategy of growing our network coverage and giving our customers a great day at work.”
Net debt narrowed from $835m (£654m) to $768m (£601m).
Looking ahead, the company reaffirmed its expectations for full-year EBITDA and debt, which were laid out in its first-quarter results in May.
Despite the growth, the Swiss firm has signalled an interest in moving its listing to the US, although speculation has quietened in recent months.
“The final step is to consider moving the listing from [the London Stock Exchange] to one of the US exchanges . . . that is certainly a consideration for the board and our investors at a later stage,” Dixon said in March.
Shares are down just over 11 per cent this year to date.