British office space provider IWG said today it expects annual adjusted core profit to be towards the lower end of its forecast, sending its shares 15% lower, despite an increased buyback target and higher first-half profit.
The company reiterated its overall forecast for adjusted core profit at $525-565m for the year, but said further investments in its managed and franchise segment could keep earnings at the lower end of its range.
IWG, the owner of the Spaces and Regus brands, posted a 6% rise in first-half adjusted core profit of $262m.
It also announced a new share buyback target of at least $130m for 2025, compared with an earlier goal of $100m.
The global office rental firm said its managed and franchise business reported a 26% growth in revenue to $361m, lifting total system revenue to $2.16 billion for the six months ended June 30.
Reporting by Reuters
