(Alliance News) - International Workplace Group PLC on Tuesday reported "record" earnings for 2024, supported by demand for flexible workspaces, while maintaining a cautious outlook amid global uncertainty.
IWG is a Zug, Switzerland-based provider of hybrid workspace for companies and individuals under Regus and other brands. Its shares were down 3.7% at 191.90 pence in London on Tuesday afternoon.
Pre-IFRS 16 adjusted earnings before interest, taxes, depreciation and amortisation, which excludes the group's largest cost, rent, rose 11% to USD557 million in 2024, up from USD503 million in 2023. The company forecasts further growth in 2025, targeting pre-IFRS 16 adjusted Ebitda of USD580 million to USD620 million.
Revenue for the year stood unchanged at USD3.69 billion. Pretax profit reached USD53 million, compared to a loss of USD237 million the prior year.
Diluted earnings per share stood at 2.0 US cents, recovering from a loss of 26.7 cents per share in 2023.
Chief Executive Officer Mark Dixon said: "We are reaching an inflection point where the hard work from the last few years is coming to fruition. We have a supportive operating environment, structural industry tailwinds and a business which is both prepared for, and delivering, centre growth. We are by far the largest player in this industry and getting ahead of the competition even further as we deliver value to landlords and clients."
The company said it continued its network expansion, signing 899 new centres and opening 624 locations in 2024. It expects even higher signings in 2025.
IWG also announced a USD50 million share buyback programme under which it has entered into an arrangement with Barclays PLC to repurchase up to 105.7 million ordinary shares. The buyback will take place until March 4, 2026.
IWG changed its reporting currency to USD from GBP in 2024. It proposed a final dividend of 0.90 US cents per share, bringing the total 2024 dividend to 1.33 US cents, up from 1.00 pence in 2023.
The company also completed a USD1.4 billion debt refinancing, extending maturities to 2030, while net financial debt fell 8% to USD712 million from USD775 million.
IWG reiterated its medium-term goal of reaching USD1 billion in pre-IFRS 16 adjusted Ebitda.
By Eva Castanedo, Alliance News reporter
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