5th Nov 2024 12:32
(Alliance News) - International Workplace Group PLC announced "strong" revenue growth on Tuesday for the three months ended September 30, driven by a surge in demand from its franchised workspaces.
IWG is a Zug, Switzerland-based provider of hybrid workspace for companies and individuals under Regus and other brands. Its shares were up 3.0% to 166.00 pence midday Tuesday.
Revenue was USD931 million in the third quarter, up 1.3% from USD919 million a year before. Revenue was flat annually on a constant-currency basis. In the nine months that ended September 30, revenue was USD2.77 billion, up 0.4% from USD2.76 billion a year before. This also was flat at constant currency.
Revenue from owned and leased workspaces was USD809 million in the third quarter, flat from USD808 million a year ago, but revenue from managed and franchised workspaces grew by 17% to USD157 million from USD136 million.
Revenue from Worka, International Workplace's marketplace, was up 3.1% to USD99 million from USD96million a year ago. The company said Worka has been hurt by "digital product delays".
IWG said it is confident that earnings before interest, tax, depreciation, and amortization, as well as net financial debt, for all of 2024 will be in line with its expectations.
It also reiterated its medium-term target for USD1 billion in annual Ebitda, which it first announced back in December of last year. Ebitda was GBP403 million in 2023, about USD523 million, up from GBP311 million in 2022.
IWG has since changed its reporting currency to dollars. On Tuesday, it said it will implement US GAAP accounting standards by 2025.
Chief Executive Officer Mark Dixon said: "This has been a good quarter for us with strong fee revenue growth of 46% in the Managed & Franchised segment, margin expansion in the Company-Owned & Leased segment and further cashflow production which has reduced net debt."
Net financial debt was reduced to USD734 million from USD775 million a year ago.
By Eva Castanedo, Alliance News reporter
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