Hybrid work specialist IWG reports record year but stays ‘cautious’
Hybrid work specialists IWG has reported a record year for revenue, but said it’s “cautious” about the year ahead as it looks to keep costs down.
International Workspace Group said it had delivered its highest-ever revenue in its 25-year history, up to £3.5bn, an eight per cent increase.
The listed company, which says it is the largest hybrid workspace in the world with almost 900,000 rooms in 120* countries, owns brands including Regus and Spaces, in addition to online services like Worka.
Following its results this morning, IWG’s shares had dropped by 5.9 per cent, to 173.90p.
It said its earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the 12 months to 31 December was up by 34 per cent to to £403m while it almost doubled its cash generation for the period on the previous year, and lowered its debt.
As millions of workers around the world adjust to the post-pandemic working environment, the group said it had doubled the number of locations opened during the year, spending a total of £55m on new centres, and 37,000 rooms opened.
It added that it maintained “cost discipline with revenue growth higher than costs”, as its chief executive welcomed the strong results.
Mark Dixon, Chief Executive of IWG, said: “We enter 2024 continuing our momentum from 2023 as we continue to grow our customer base, our global partnerships and our best-in-class network.
“While 2023 was a record year for both revenue and network size, we continue to see significant growth potential.
“With 1.2bn white-collar workers globally and a potential audience valued at more than $2trn, there is substantial room for growth and as a company, we have a laser-like focus on capturing more of this market over the coming months and years.”
Looking ahead to the rest of the year, the company said demand for hybrid work “continues to grow” as firms look to cut costs and respond to the need for more flexibility.
IWG “remains cautious in its outlook and continues to focus on driving efficiencies and cost control. As a result, we are confident that 2024 EBITDA will be in-line with management’s expectations.”
It also said there would be a few bumps in the first quarter of 2024 due to a changeover in its accounting system.