IWG reports modest first-quarter growth

(Sharecast News) - International Workplace Group reported modest first-quarter revenue growth and strong cash generation on Tuesday, prompting it to double its share buyback programme to $100m while continuing to reduce leverage.

The FTSE 250 company confirmed it was on track to meet full-year guidance.

System-wide revenue rose 2% year-on-year to $1.06bn for the three months ended 31 March, supported by expansion across its global hybrid workspace network.

The company signed 224 new agreements and opened 165 locations during the quarter, up from 212 and 142 respectively a year earlier.

Revenue from company-owned centres grew 3% in open locations, while system revenue in the managed and franchised division jumped 23%, driving a 43% increase in quarterly fee income.

IWG said it reduced net financial debt by $83m over the year to March, and reported further reductions during the quarter.

As of early May, it had completed over $30m of the initial $50m buyback announced in March.

The expanded programme was expected to be completed around the time of its half-year results in August.

IWG maintained its full-year 2025 guidance for pre-IFRS 16 EBITDA of $580m to $620m on a constant currency basis.

"I am delighted with our start to 2025 despite uncertainty globally," said chief executive officer Mark Dixon.

"March was a record sales month, and lead indicators such as enquiries and tours are running at all-time highs in the US despite the challenging macroeconomic backdrop."

Dixon said the company was continuing to see signings and openings grow as it expanded its network and coverage, allowing the "flywheel of our business model" to deliver greater cashflow while requiring less capital to grow than historically.

"We are delighted to continue to deliver returns to our shareholders whilst simultaneously reducing debt in-line with our targets."

At 1120 BST, shares in International Workplace Group were up 0.81% at 187.1p.

Reporting by Josh White for Sharecast.com.