IWG revenue up 8% as it leans on capital-light expansion
Revenue at IWG has grown by 8% over the quarter, as it accelerates its capital-light expansion.
The flexible office provider posted quarterly system revenue of £830m for Q3, up 8% in constant currency. So far this year it has pulled in just under £2.5bn, 11% up on the same period last year.
IWG said it had signed 200 capital-light centres over the quarter, taking the total to 582 for the year to date. This is up 40% on the total signings for 2022. It also signed deals for four fully-owned centres.
Revenue at IWG has grown by 8% over the quarter, as it accelerates its capital-light expansion.
The flexible office provider posted quarterly system revenue of £830m for Q3, up 8% in constant currency. So far this year it has pulled in just under £2.5bn, 11% up on the same period last year.
IWG said it had signed 200 capital-light centres over the quarter, taking the total to 582 for the year to date. This is up 40% on the total signings for 2022. It also signed deals for four fully-owned centres.
Chief executive Mark Dixon said: “The structural growth in hybrid working, combined with our market position, has resulted in continued revenue momentum in the third quarter of 2023. Our capital-light growth strategy is continuing to deliver with around 40% more locations already signed in 2023 than in the whole of 2022. Our revenue growth and cost control are driving cash flow enabling us to continue to pay down debt.”
The company said its net debt had been reduced over the quarter by £24m to £634m.
IWG has been steadily moving to a capital-light model, as opposed to one where it owns the bricks and mortar.
In total, 99 centres were opened over the quarter, with 42 closed.
“This adds to an already healthy pipeline of centres signed but not yet opened,” it added.
IWG currently has 3,455 centres across the globe.
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Image from IWG
