Overview

• IWG posted record first-half system-wide revenue of $2.2 billion, up about 2% year on year, with operating profit steady at $68 million.
• Adjusted profit for the half rose 6% to $262 million, but management expects the full-year figure to finish at the lower end of its $525 million to $565 million guidance range.
• The group opened hundreds of additional centres in the first half, with most new sites in suburbs, small towns and rural areas as workers avoid long daily commutes.
• Average rents are roughly 3% lower than a year ago to boost occupancy and support longer-term sales, the company said.
• Shares fell about 17% in early trading; CEO Mark Dixon called the slide “not rational” and blamed “machine selling,” as Jefferies flagged a weaker free cash flow outlook.