IWG Reports strong half-year results with record revenue and earnings growth

International Workplace Group plc (IWG), the world’s largest hybrid workspace platform, announced its financial results for the first half of 2024, ending 30th June. The company, which operates in over 120 countries through brands like Regus and Spaces, reported record revenue, positive cash flow, and a return to positive earnings for the first time in nearly five years.

During the first six months of 2024, IWG achieved its highest-ever system-wide revenue of $2.1 billion, reflecting a 2% growth in constant currency. The company’s EBITDA grew by 13% to $274 million, up from $245 million in the first half of 2023. Cash flow from business activities reached $118 million, contributing to a reduction in net debt, which now stands at $768 million, compared to $835 million in the same period last year.

The company also saw significant growth in its managed partnerships, with 387 new center signings and 247 openings, marking a 173% year-on-year increase in rooms opened. The Managed & Franchised division experienced accelerated growth in new centers, while the Company-Owned & Leased division continued to expand its margins.

Mark Dixon, Chief Executive of IWG, commented on the results, stating, “The first half of 2024 produced good year-on-year open-centre revenue growth. We are delivering on our capital-light growth plan. 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.”

The company also successfully refinanced its debt, extending maturities to 2029/2030 and issuing its first bond, backed by a Fitch BBB investment-grade credit rating. IWG’s financial outlook remains stable, with continued growth and further reduction in net debt expected throughout 2024.

Photo: Spaces New Broad Street 1420 London UK