International Workplace Group (IWG) H1 2024 earnings summary

Executive summary

• Achieved record system-wide revenue of $2.1bn for H1 2024, up 2% year-over-year, with group revenue stable at $1.84bn.

• Adjusted EBITDA rose 13% to $274m, with a return to positive EPS of 1.6¢ and an interim dividend of 0.43¢ per share, the first since 2019.

• Cashflow from business activities reached $118m before growth CapEx, supporting a $68m reduction in net debt to $768m.

• Network expanded by 10% to 3,751 centres, with 465 new locations signed and 306 opened, 95% capital-light.

• Platform-based, capital-light growth strategy continues to drive global expansion, especially in the U.S. and other major markets.

Financial highlights

• System-wide revenue: $2,088m (+2%); Group revenue: $1,836m (flat); Adjusted EBITDA: $274m (+13%).

• Operating profit before rationalisations up 93% to $231m; gross profit margin improved to 28%.

• Net profit: $16m (vs. $-76m H1 2023); EPS: 1.6¢ (vs. -7.5¢ H1 2023).

• Net debt reduced by $68m to $768m; CapEx for H1 at $79m, down from $102m in H1 2023.

• Interim dividend of 0.43¢ per share announced and $13m paid in H1 2024.

Outlook and guidance

• No changes to expectations for the remainder of 2024; continued growth and net debt reduction anticipated.

• Medium-term EBITDA run rate target of $1bn reaffirmed, with strong cash flow production expected.

• Transition to US dollars as functional currency completed; US GAAP transition timing to be announced.

• Focus remains on capital-light network expansion, margin growth, and fee growth in Managed & Franchised.