The first half of 2025 has been marked by another period of record system-wide revenue and solid EBITDA growth, underpinned by continued momentum in the Managed & Franchised business, resilient performance across Digital & Professional Services, and disciplined cashflow management. Strengthened shareholder returns, through dividends and an expanded share buyback programme, further reflect the Group’s focus on sustainable value creation.

Key highlights from the half year’s results:

 Group performance – record revenue and EBITDA growth

•    Record system-wide revenue of $2,162m, up 2% (H1 2024: $2,123m)
•    Adjusted EBITDA of $262m, up 6% (H1 2024: $247m)
•    Cashflow from operations (before growth capex) of $48m (H1 2024: $36m)

Divisional performance – strong Managed & Franchised momentum

•    Company-owned revenue: $1,593m (H1 2024: $1,613m)
•    Digital & Professional Services: $207m, with underlying growth of +6%
•    Managed & Franchised:
     o    System-wide revenue up 26% to $361m
     o    Fee income up 43% to $50m
     o    Recurring management fee income up 163% to $19m
     o    220k rooms open, with a further 186k signed but not yet open

Capital structure & shareholder returns

•    $59m returned to shareholders through dividends and buybacks – over 3.5x the combined prior five years
•    Buyback programme expanded to at least $130m (previously $100m)
•    Interim dividend of 0.45¢ per share
•    Net leverage stable at ~1.5× Adjusted EBITDA, no refinancing required before 2029

Outlook

•    Full-year Adjusted EBITDA guidance maintained at $525m–$565m, expected towards the lower end due to continued investment
•    Continued focus on disciplined, capital-light growth and enhanced shareholder returns

Mark Dixon, Chief Executive of IWG plc, said:
" We set out a clear strategy at our Investor Day in December 2023 for capital-light growth to deliver cashflow, and business simplification. We have been delivering against this strategy and will continue to do so.… 
In the last six months, more locations were opened than in the entire first decade of our existence. We now have around 1 million rooms in 121 countries with a significant pipeline. This is expected to drive our future growth. "

 

IWG