IWG: Workspace platform reports record March and ups share buybacks
International Workspace Group (IWG) has reported a flat first quarter and record March as it fended off macroeconomic uncertainty.
The company told markets this morning that revenue was stable at $909m (£683m) in the first quarter of the year.
IWG, which provides flexible workspaces for businesses and individuals, upped its share buyback programmed from $50m (£37m) to $100m (£75m), with the already-announced $50m expected to be completed by August 5, it said.
It said system-wide revenue, a measure of total sales across company-owned, franchised and managed outlets, grew two per cent year on year to $1.07bn (£800m).
Growth in IWGs managed and franchised division was 23 per cent year on year, leading to 43 per cent growth in fee income in the quarter.
Revenue at its company-owned location was flat year on year. IWG signed 28 new locations and opened 43 in the quarter.
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.
CEO Mark Dixon said: “I am delighted with our start to 2025 despite uncertainty globally. March was a record sales month, and lead indicators such as enquiries and tours are running at all-time highs in the US despite the challenging macroeconomic backdrop.
“We continue to see signings, and openings grow as we further expand our network and coverage, allowing the flywheel of our business model to keep delivering greater cashflow whilst requiring less capital to grow than historically.
“We are delighted to continue to deliver returns to our shareholders whilst simultaneously reducing debt in-line with our targets.”
IWG said its expectations for 2025 remain unchanged, with forecast growth in pre-tax earnings before interest, tax, depreciation and amortization (EBITDA) for the full year at $580m to $620m.
It also expects net debt/EBITDA to continue to fall, and to report centre openings and signings above 2024 levels.