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International Workplace Group PLC on Tuesday reported stable group revenue in the third quarter, as it said ‘the evolution of occupancy and pricing’ positions it well for further growth. The Zug, Switzerland-based provider of hybrid workspace reported group revenue of $947 million for the three months to September 30, flat with the prior year. System-wide revenue rose 4.1% to $1.13 billion from $1.08 billion, with Managed & Franchised realising system-wide revenue growth of 36% to $213 million from $157 million. ‘I am pleased with the financial results in the third quarter of 2025. The incremental investment we have made in our Managed & Franchised segment has already led to an acceleration in the number of locations we have opened and added to the pipeline as we continue to expand our network and coverage,’ said Chief Executive Mark Dixon. The company noted that Managed & Franchised had 245,000 rooms open at the end of the third quarter, with an additional 190,000 in the pipeline, ‘signed and not yet opened’. It added that once opened and mature, it sees them producing system-wide revenue of greater than $1.6 billion per year. Company-owned revenue was $806 million, down 0.4% from $809 million, with International Workplace noting good revenue visibility. The company reported a 7.8% increase in net financial debt to $813 million from $754 million at June 30 this year. Looking ahead, International Workplace confirmed its annual guidance given at its interim results. It continues to expect adjusted earnings before interest, tax, depreciation, and amortisation between $525 million and $565 million, and with net debt ‘roughly unchanged’ from 2024. Shares in the company fell 3.8% to 211.80 pence on Tuesday morning in London. ‘The evolution of occupancy and pricing sets us up well for further growth in the remainder of the year and into 2026. Operational cash generation is enabling the ongoing share buyback,’ continued Dixon. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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