IWG has boosted revenue by 25% over the third quarter as it moved further towards a capital-light model.
The hybrid workspace provider, which has a network of 3,323 locations across 120 countries, said group revenue had risen to £737m for the three months to the end of September, a 25% increase on the same period last year. Revenue for the first nine months of the year was up to £2bn, from £1.59bn the previous year.
Chief executive Mark Dixon said: “The third quarter has shown continuing strong revenue growth, margin improvement and underlying cash generation. We are well placed to deliver the full-year results and enter 2023 with a strong foundation for delivering further growth and reducing leverage.”
IWG said it had completed 252 new centres under the capital-light model to date, representing 90% of new deals. The contracts, which include franchise agreements and management or partnership contracts, typically involve a fee structure, no capex spend by IWG and no lease liabilities. It plans to have signed 500 by the year end.
Dixon added: “The significant move to hybrid working is driving strong demand for our flexible work products and creating a long-term tailwind for IWG as businesses all over the world respond to the twin effects of economic uncertainty and their employees’ desire to work flexibly. To meet this demand, our innovative capital-light growth strategy allows us to capitalise on the growing pipeline of commercial property owners and landlords seeking to maximise their returns by partnering with IWG.”
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