International Workplace Group (IWG) H1 2024 earnings summary

Executive summary

• Delivered record system-wide revenue of $2.1bn for H1 2024, up 2% year-over-year at constant currency, 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.

• Net financial debt reduced to $768m from $835m year-over-year, driven by $118m cashflow before growth capex and a capital-light growth strategy.

• Opened 306 new centres (up 130%), with 95% capital-light, and signed 465 new centre deals, 99% capital-light, expanding the network by 10% to 3,751 centres.

• Maintained global leadership in the flexible workspace market, with strong ESG credentials and inclusion in FTSE4Good and AA MSCI ESG rating.

Financial highlights

• System-wide revenue: $2,088m (+2% constant currency); group revenue: $1,836m (flat year-over-year).

• Adjusted EBITDA (pre-IFRS 16): $274m (+13%); reported EBITDA: $917m (+5%).

• Operating profit before rationalisations: $231m (+93%); net profit: $16m (vs. $-76m H1 2023); EPS: 1.6¢.

• Gross profit before rationalisations: $513m (+35%); gross margin improved 7ppt to 28%.

• Net debt reduced by $67m to $768m; capex reduced to $79m, with a shift toward platform and technology investments.

Outlook and guidance

• No change to expectations for H2 2024; continued growth, margin improvement, and net debt reduction anticipated.

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

• Ongoing transition to US GAAP and US dollar functional currency.