International Workplace Group plc (IWG), a provider of hybrid workspaces, delivered its strongest-ever financial performance in FY 2024. The group reported record revenue, EBITDA, and cash generation. System-wide revenue peaked at $4.2 billion, reflecting a 6 per cent growth in open centres and a 2 per cent growth across all centres. The company also saw its highest-ever pre-IFRS 16 EBITDA, which grew by 11 per cent to $557 million, compared to $503 million in 2023. Additionally, IWG achieved the highest-ever network growth, with 899 new centre signings and 624 openings. The company's net financial debt decreased to $712 million, down from $775 million in 2023. Furthermore, IWG returned to profitability, posting earnings per share of 2.0¢, compared to a loss of (26.7)¢ in 2023.
The Managed & Franchised segment saw strong performance, with fee income growing by 30 per cent to $79 million, up from $61 million in 2023, driven by the expansion of new centres. The company achieved record openings, adding 73,000 rooms to its network, almost twice as many as in 2023, with 37,000 rooms added. Signings also increased, with 725 new locations signed in 2024, compared to 678 in 2023, and the company expects even higher signings in 2025. By the end of 2024, this segment had 185,000 rooms open and 182,000 rooms signed but not yet open. Once these rooms are fully operational and mature, they are projected to generate system-wide revenues of $1.4 billion per year.
The Company-owned segment continued to show strong profitability, with a margin increase from 22 per cent in 2023 to 25 per cent, resulting in a profit of $790 million, up from $711 million in 2023. Revenue growth in open centres was solid, rising by 5 per cent. The company also achieved further efficiency in its capital expenditures, reducing centre-related net growth capex to $51 million, compared to $70 million in 2023. Maintenance capex was effectively controlled despite the ongoing inflationary pressures.
The Digital & Professional Services segment demonstrated solid underlying performance. Excluding the impact of the previously announced loss of a legacy contract, underlying revenue increased by 8 per cent, while underlying EBITDA grew by 18 per cent, reflecting strong operational performance in this area.
The company maintained disciplined control over its overhead costs. Underlying core overheads fell by 1 per cent, reflecting effective cost management. However, discretionary overheads increased by $36 million to $59 million, reflecting investments to fuel future growth. This included a $25 million headcount investment in the Partnership Sales team to drive managed partnership location signings, $13 million in increased marketing investment, and $4 million in finance projects. As a result, total overheads rose by 6 per cent to $502 million, up from $473 million in 2023. While discretionary overhead spending increased, it is expected to enhance scalability and support future growth.
