IWG Plc Reports Revenue Growth and Boosts Share Buyback Program

IWG Plc's system-wide revenue climbed 2%, boosting investor confidence. The company also raised its share buyback program, signaling strength going into FY25.

Date: 06-05-2025

AI Rating: 7

Revenue Growth
IWG Plc reported a system-wide revenue of $1.06 billion, marking a 2% increase from the previous year. The impressive growth in the Managed & Franchised division, up 23% to $171 million, along with a 3% increase in the Company-owned division revenue from $764 million to $790 million, showcases robust operational performance despite economic uncertainties, such as the impact of US tariffs on the global economy.

Share Buyback Program
The increase in the share buyback program from $50 million to $100 million is a positive signal to investors. This reflects the company's confidence in its financial position and future cash flow generation. It indicates an intent to return value to shareholders, which is often interpreted positively by the market.

Outlook
IWG has reiterated its guidance for fiscal 2025, expecting adjusted EBITDA between $580 million to $620 million on a constant currency basis. The company also anticipates improved net debt to EBITDA and more center openings. These projections can enhance investor sentiment and confidence in the company's growth trajectory. The focus on achieving $1 billion in pre-IFRS 16 EBITDA in the medium-term also aligns with favorable long-term financial aspirations.

Overall, the indicators presented reflect a combination of stable revenue growth, effective financial strategies like share buybacks, and a positive outlook, which collectively imply a bullish sentiment around the company's stock performance in the near term.

Stocks: IWG.L