IWG: Co-working platform announces share buyback, higher dividend
Hybrid workspace provider IWG has announced a share buyback programme and an increase in its dividend after a jump in earnings.
The company will buy back $50m (£39.4m) worth of shares and pay out a dividend of 0.90 pence per share for a total 2024 dividend of 1.33 pence per share, up from one pence per share last year.
IWG, which provides flexible workspaces for businesses and individuals, reported group revenue of $3.7bn (£2.91bn) in the 12 months ended December 31, 2024, flat year on year.
But earnings before interest, tax, depreciation and amortisation (EBITDA) rose 11 per cent to $557m (£438m), and operating profit rose 226 per cent to $114m (£90m).
IWG has been boosted by the return to office, with a record number of new openings in 2024. Just under 900 new centres – the vast majority under its partnership model – were signed and 624 spaces were opened last year.
Chief executive Mark Dixon said the company is reaching an “inflection point”, where “the hard work from the last few years is coming to fruition”.
“We have a supportive operating environment, structural industry tailwinds and a business which is both prepared for, and delivering, centre growth.
“We are by far the largest player in this industry and getting ahead of the competition even further as we deliver value to landlords and clients.
“I am confident that following last year’s delivery of record revenue, record EBITDA and record centre growth, our share buyback programme announced today further underpins the position that IWG has as a global category leader whose offices you can find in almost every major city on the planet.”
The company’s share price has risen by more than 17 per cent in the past month and more than 24 per cent in the year to date.
Dixon has previously publicly considered moving the company’s listing to the States.
IWG predicted EBITDA of $580m (£456m) to $620m (£488m) in 2025. It will target EBITDA of $1bn (£0.79bn) in the medium term.