Business
IWG FY 2023 Preliminary Results
IWG FY 2023 Preliminary Results.
About this update from International Workplace Group Plc
[{"type":"text","content":"\n\n \n \n \n\n5 March 2024\nPRELIMINARY RESULTS ANNOUNCEMENT\nIWG plc, the world's largest hybrid workspace platform with operations of 895,000 rooms across 3,514 locations in 120 countries through brands such as Regus and Spaces, and in addition the digital services business Worka, issues its preliminary results for the twelve months ended 31 December 2023.\n \nIWG DELIVERS: GROWTH, REVENUE, CASH, DIVIDEND\n \nGroup performance: record revenue, increasing EBITDA and cash generation\n· Delivering the highest-ever revenue in IWG's 35-year history with 10% constant currency growth in system-wide1 revenue to £3.3bn, 8% growth at actual currency\n· EBITDA2 increase of 34%3 to £403m (2022: £311m) driven by combination of higher revenue and cost focus\n· Higher cash generation of £297m cash flow from business activities4 (2022: £151m) and £104m lower net financial debt vs 2022\n· Expanding footprint globally across diverse locations with a doubling in the open rate during 2023 from 2022, almost all with no capex\n· Continued cost discipline with revenue growth higher than cost5 growth despite continued global inflationary pressure\n· As previously announced, resumption of dividend payments with a progressive policy and the Board is recommending a final dividend of 1.0p per share\n \nManaged & Franchised: contract signing growth continues, rooms opening, increasing RevPAR\n· Fee income from Managed & Franchised business up 49%3 to £50m (2022: £34m)\n· Record 117k rooms signed during 2023, up 129% vs 2022 with an estimated RevPAR of £200 at maturity\n· Signings now evolving into openings at pace, with 37k rooms opened in 2023 (15k rooms opened in 2022)\n· At end of 2023, a total of 115k rooms had been signed and not yet opened\n· Revenue Per Available Room (\"RevPAR\") of £381 per month in 2023 with an estimated RevPAR of c£250 once all rooms including the signed pipeline have opened and matured\n· Increased investment in supporting this ongoing programme\n \nCompany-Owned & Leased: ...