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10 August 2021 IMG Wolp International Workplace Group IWG plc - INTERIM RESULTS ANNOUNCEMENT - SIX MONTHS ENDED 30 JUNE 2021 IWG plc , the global operator of leading workspace brands , today announces its interim results for the six months ended 30 June 2021 Strong occupancy recovery in Q2 in major markets and future top - line recovery supported by the growth of hybrid working and new customer wins . Pace of recovery dependent on continued easing of pandemic restrictions . Key Highlights ( 1 ) Performance improvement evident in Q2 Open centre revenue increased from Q1 to Q2 by 3.4 % ( 2 ) ; HY down 10.4 % ( 2 ) year - on - year Pre - 2020 ( 3 ) revenue increased from Q1 to Q2 by 1.5 % ( 2 ) ; HY down 15.0 % ( 2 ) year - on - year to £ 992.0m ( H1 2020 : £ 1,224.7m ) • Pre - 2020 ( 3 ) occupancy increased from Q1 to Q2 by 120 bps to 69.0 % ; HY occupancy was 68.4 % ( H1 2020 : 75.3 % ) • Encouraging Group pricing trends at the end of the period , with average new sales price exceeding embedded price in June Enquiries and customer retention are back to pre - COVID - 19 levels in Q2 Very strong recovery in meeting room and day office usage in Q2 with revenue up 39.9 % ( 2 ) on Q1 2021 Month - on - month improvement in EBITDA during Q2 • US showing the strongest recovery ; June was a record month for Structural tailwinds strengthening space sold Unprecedented demand for hybrid working ; record new client wins with over 900 new enterprise customers gained in H1 Pre - existing demand strongly supplemented by more enterprises now looking at greater distributed working Strong focus on cost control On track to achieve a run - rate reduction in underlying pre - growth costs of c . £ 320m ( ¹ ) . Approximately £ 190m delivered in H1 versus prior year • £ 39.2m COVID - 19 related charges ( 1 ) ( 4 ) Quality network growth 84 new locations opened including the acquisition of four competitor locations with nine more already signed for opening in H2 • Less capital - intensive growth – net growth investment of £ 46.9m ( ¹ ) ( H1 2020 : £ 116.2m / 88 locations ) Increased momentum in franchising strategy • Added 17 new franchise agreements across 10 countries with an additional 64 committed locations • . First franchise agreements signed in the US We have just entered into a JV with Hysan to operate across Hong Kong and the Greater Bay Area Franchising remains a key focus area for growth ; Master franchise discussions ongoing Q2 sales and operational performance underpins H2 momentum • H2 performance expected to be underpinned by continuing occupancy and revenue improvement and cost savings Uniquely positioned to help companies adapt to the new world of hybrid working post COVID - 19 Interim results £ m Revenue H1 2021 ( As reported ) 1,066.6 H1 2020 ( As reported ) 1,321.3 Open centre revenue 1,055.2 1,236.2 % change % change constant currency actual currency ( 15.3 ) % ( 19.3 ) % H1 2021 H1 2020 ( Pre - IFRS 16 ) ( Pre - IFRS 16 ) 1,066.6 1,321.3 1,055.2 1,236.2 ( 10.4 ) % ( 14.6 ) % Operating ( loss ) – continuing operations ( 79.8 ) ( 92.8 ) ( 186.6 ) ( 169.5 ) Adjusted operating profit / ( loss ) - continuing operations ( Loss ) before tax - continuing operations ( 30.2 ) 43.3 ( 147.4 ) ( 13.7 ) ( 162.7 ) ( 237.3 ) ( 183.4 ) ( 176.2 ) ( Loss ) after tax - continuing operations ( 172.6 ) ( 238.4 ) ( 192.0 ) ( 202.2 ) Earnings per share - attributable to ordinary shareholders ( p ) Adjusted earnings per share - from continuing operations ( p ) Adjusted EBITDA Net debt ( 16.9 ) ( 26.5 ) ( 18.8 ) ( 22.7 ) ( 12.0 ) ( 11.0 ) 528.6 ( 15.0 ) ( 5.2 ) 694.5 5.4 137.4 6,785.8 ( 5 ) 7,067.9 ( 5 ) 414.6 ( 15.9 ) ( 1 ) Presented in accordance with pre - IFRS 16 accounting standards ( as defined in Alternative performance measures section ) ( 2 ) At constant currency ( 3 ) ( 4 ) ( 5 ) Pre - 2020 refers to the performance for all operations opened on or before 31 December 2019 and which were open throughout the period COVID - 19 related charges are separately disclosed as adjusting items as they are considered to be significant in nature and / or size Net debt in accordance with IFRS 16 includes lease liabilities of £ 6,371.2m 1