(Yicai) Aug. 27 -- International Workplace Group posted record-high revenue in the first half, driven by the flexible workspace provider’s asset-light expansion strategy and growing demand for hybrid work solutions that offer companies greater flexibility, scalability and variety in their office setups.

IWG logged a 22.2 percent jump in net profit in the six months ended June 30 from a year earlier to USD11 million, while its adjusted Earnings Before Interest, Taxes, Depreciation and Amortization climbed 6 percent to USD262 million, according to the firm’s latest earnings report.

IWG secured 496 new center deals in the first half, up 7 percent from a year earlier, with virtually all adopting the capital-light model, it said. The company opened 338 new locations during the period, 97 percent of which were capital-light centers.

The workspace solutions provider has accelerated its expansion in China, signing nearly 50 new flexible workspace deals in the first half. Beyond strengthening its presence in the four first-tier cities, namely Beijing, Shanghai, Shenzhen and Guangzhou, IWG is pushing into lower-tier markets. The firm now operates over 150 centers across more than 45 Chinese cities, including recent openings in Tianjin and Xi'an.

"We have been delivering on our capital-light growth strategy outlined at our December 2023 Investor Day," said founder and Chief Executive Officer Mark Dixon. "In the past six months, we opened more locations than in our entire first decade of operations."

The company's digital and professional services unit saw underlying revenue climb 6 percent, while recurring management fee income surged 160 percent year on year to USD19 million.

IWG has paid out USD59 million in dividends and buybacks to shareholders since March, three-and-a-half times the amount distributed over the previous five years. The company expects full-year cash flow in 2025 to jump 40 percent to at least USD140 million and maintains its mid-term target of USD1 billion in EBITDA.

The firm operates about 4,000 locations in over 120 countries through brands including Regus, Spaces, HQ and Signature. Its client base comprises 83 percent of Fortune 500 companies.

Editor: Kim Taylor