5th Nov 2019 08:57
(Alliance News) - IWG PLC said Tuesday its revenue grew in the third quarter of its financial year, with strong performance from all its regions, including improved momentum in the UK.
For the three months to the end of September, the shared office provider reported revenue at GBP692.3 million, up 9.4% at constant currency from GBP6.11.6 million in the same period a year before, driven by robust growth in all regions, including the UK.
Group mature revenue - meaning from office centres opened before 2018 - rose by 3.3% at constant currency to GBP591.4 million from GBP552.8 million the prior year, as the UK started to perform well enough to make a contribution to revenue.
Mature occupancy for the three-month period rose by 2.2 percentage points to 76.4% from 74.2% the same period the year before.
For the nine months to September, group revenue rose by 9.9% to GBP1.99 billion from GBP1.77 billion the prior year.
During the third quarter, IWG added 66 new locations to its global network, bringing the total amount of locations added for the year to date to 189 new locations.
This has added 5.2 million square feet of space, bringing the group's total network to 60.4 square feet, or 3,348 locations worldwide.
IWG said it has made strong progress with its franchising activities. Following the signing of master franchise agreements in Japan, Taiwan and Switzerland, IWG now has 27 franchise partners across 22 countries, with combined commitments of over 400 new centre locations.
"We remain very confident in the structural, long-term growth in the flexible workspace market and IWG's leading position within it, which we continue to extend. We believe our transition to a franchising model by partnering with a growing and diverse range of third parties will deliver a quicker and more asset light approach to growth, which benefits all stakeholders. We are making excellent progress in shaping the business to benefit from this significant growth opportunity," IWG said in a statement.
"With the increasing interest in our partnering approach from a diverse range of parties across our regions, we anticipate reporting on further deals in the future to continue to unlock value for our shareholders," IWG added.
Shares in IWG - which is headquartered in Zug, Switzerland - were down 1.4% at 389.60 pence in London on Tuesday.
By Dayo Laniyan; [email protected]
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