IWG buoyed by workers returning to the office
Hybrid workspace platform International Workplace Group (IWG) has reported an uptick in revenue boosted by strong growth in its managed and franchised properties.
Revenue grew by two per cent in the three months to 30 September, 2024, on a year-on-year constant currency basis, the company told markets this morning.
The firm grew revenue at its managed and franchised properties by 19 per cent in its third quarter, with fee revenue up 46 per cent year on year.
Openings of new offices “continue to accelerate”, IWG said, up 52 per cent year on year. IWG has been buoyed by the return of workers to offices this year.
At the end of the quarter, the company said it had 169,000 rooms open with a pipeline of 173,000 rooms signed but not yet opened.
Net debt fell to $734m (£565m), down by $34m from $768m at the same time last year.
‘We are delivering on our plan’ – IWG boss
Mark Dixon, IWG chief executive, said: “This has been a good quarter for us with strong fee revenue growth of 46 per cent in the managed and franchised segment, margin expansion in the company-owned and leased segment and further cashflow production which has reduced net debt.
“We are delivering on our plan and have good visibility to our medium-term $1bn (£770m) earnings before interest, tax, depreciation and amortisation (EBITDA) target.
“We remain committed to our strategy of growing our network coverage and giving our customers a great day at work.”
Despite the growth, the Swiss firm has signalled an interest in moving its listing to the US.
“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,” chief executive Matt Dixon said in March.
In September, a leading shareholder Miami-based investment firm Buckley Capital Management argued that the London market ‘misperceived and undervalued’ IWG.
“We believe that moving IWG’s listing to the US presents a strategic opportunity to enhance shareholder value and we support the company’s efforts to explore this option”, Buckley said.
Shares in IWG have fallen by nearly nine per cent in the year to date and more than 50 per cent in the last five years.