- IWG reported that the group’s revenue remained stable at $912 million in the first three months of 2024
- The company is reportedly considering moving its primary listing to New York.
IWG maintained its full-year outlook on Tuesday following strong performance from its managed and franchised business.
The office space provider reported that group revenue remained stable at $912 million in the first three months of 2024, while system-wide turnover grew 2 percent to $1.04 billion (820 million). pounds sterling).
Its managed and franchised division posted a 15 percent sales increase in constant currency to $139 million thanks to the opening of 47,000 new rooms over the prior 12 months, offsetting lower revenue per available room.
Work environment: Office space provider IWF confirmed its annual outlook on Tuesday
The division opened 19,000 rooms and 124 centers during the first quarter of 2024 and signed agreements for another 179 centers.
At the same time, revenue from IWG’s company-owned and leased operations, its largest segment, fell slightly to $799 million, while its net debt declined about 8 percent to $791 million.
Following the result, the Regus owner continues to expect earnings before unpleasant risks and net debt for the full year to be in line with management’s forecasts.
IWG’s latest trading update comes amid reports that it could join other British companies in abandoning its London listing in favor of New York.
The group is switching to reporting in dollars rather than pounds this year and has also pledged to simplify its financial reporting and reduce its debt.
Mark Dixon, CEO and co-founder of IWG, said: “We are delivering on our plan to grow capital-light, and momentum in signings and, more importantly, openings, continues to accelerate.”
IWG actions They rose 0.5 per cent to 190.7 pence on Tuesday afternoon, meaning they are up 14 per cent in the last 12 months.
Could another company abandon London and move to New York?
Companies often choose to go public on Wall Street, attracted by the prospect of higher valuations and deeper capital pools than in the UK.
Paddy Power owner Flutter, mining group AngloGold Ashanti and construction materials supplier CRH recently changed their primary listing to New York.
And last year, Softbank dealt a considerable blow to the London Stock Exchange by choosing to list semiconductor giant ARM Holdings, whose technology is in almost all smartphones, in the United States.
Later this month, shareholders of pharmaceutical group Indivior will vote on whether to approve the company changing its primary listing on Wall Street.
