IWG PLC on Tuesday reported a ‘record’ quarterly revenue, thanks to demand for hybrid working and improved pricing.
In the three months ended March 31, the workspace provider expects to report a 25% jump in group revenue to £760 million from £609 million a year ago. IWG said this is a ‘record quarterly revenue’, illustrating the benefits of improved pricing, ahead of inflation, and improving occupancy.
System-wide revenue in the quarter jumped 22% to £847 million from £692 million, driven by continuing global demand for hybrid working solutions, and the acquisition of Instant Group in March 2022. System-wide revenue represents the total of all revenue made by both non-consolidated and consolidated locations globally, Zug, Switerzland-based IWG explained.
The company also said it achieved carbon neutrality for the entire quarter and expects to be carbon neutral for all of 2023.
Looking ahead, IWG noted macroeconomic headwinds, despite higher demand for hybrid working solutions globally, with companies reducing their real estate costs and responding to the needs of their employees. It therefore remains ‘cautiously optimistic’ about the outlook for 2023.
The company added that it remains confident that earnings before interest, tax, depreciation and amortisation will remain in line with management’s expectations, with net debt falling during the year. This guidance in unchanged from March.
Chief Executive Officer Mark Dixon said: ‘In the first quarter of 2023 we continued to deliver record levels of revenue. I’m pleased to see that we are combining this with margin expansion, enhanced cash flow generation, and building on our capital-light growth strategy.’
Shares in IWG were down 0.9% at 168.00 pence on Tuesday morning in London.
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