New Delhi [India], March 31 (ANI/ATK): IWG plc, the world leader in flexible workspaces and coworking including its Regus and Spaces brands and an unrivalled network of 3,345 buildings across 120 countries, issues its preliminary results for the twelve months ended 31 December 2022. This remarkable growth is a reflection of increased demand for flexible working and higher pricing. Despite global inflationary pressure, IWG has continued cost discipline, with central overhead costs remaining almost flat. This achievement is especially impressive given the current economic climate.
The company's momentum is set to continue going into 2023, with higher revenue, higher operating profit, higher occupancy, and higher pricing in December 2022. IWG has achieved all of this with an operating profit of Pound 147m in 2022, delivering both growth and cash.
The EBITDA increase of 442% to Pound 317m (2021: Pound 59m) was driven by a combination of higher revenue and cost focus. Additionally, cash flow from business activities increased to Pound 151m (2021: outflow of Pound (219)m), delivering net debt reduction. With the highest-ever network footprint of more than 65 million sq. ft., IWG is the market leader worldwide by far. Currently, 26.5% of building capacity remains with occupancy at 73.5%. In addition, IWG completed a record signing of 462 new capital-light contracts in 2022, delivering further capacity increases across the network and an even more unrivaled global network. The company's continued strong momentum for new capital-light contracts is on track to exceed 2022, ensuring progress on expansion priorities.
IWG's digital assets, together with the Instant Group, were combined under a new brand, Worka, and total Worka revenue was up 105% year-on-year to Pound 271m, with EBITDA of Pound 112m. IWG reaffirms Worka's operation independently and plans to evaluate reducing its ownership stake.
Mark Dixon, Chief Executive of IWG plc, said "The growth juggernaut in hybrid working continues and 2022 has been a record year for IWG with our highest-ever revenue produced in our 34-year history, up 24% from 2021. We have delivered this through our multi-brand strategy, primarily Regus and Spaces, and continue to have the largest global network of hybrid workspace by far. We have also shown that we can deliver both high levels of growth and profitability alongside EBITDA and cash flow generation. We have done this through a combination of higher demand for flexible work products, higher pricing, and continued cost discipline, and I am looking forward to continuing this momentum in 2023. During 2023 we will continue building on our capital-light growth strategy which allows us to capitalise on the growing pipeline of property investors seeking to maximise their returns by partnering with IWG. We continue to be well-placed to deliver further revenue, profitable growth and reducing leverage as more companies permanently embrace hybrid working as their preferred model, with IWG set to benefit most as by far the leading global player. I would like to thank the entire IWG team for their hard work in 2022, and our customers for their continued support."
The Group reports results in accordance with IFRS, with a reconciliation between EBITDA before the application of IFRS 16 and the IFRS 16 EBITDA provided in the CFO review.
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