(Reuters) -British office space provider IWG said on Tuesday it expects annual adjusted core profit to be towards the lower end of its forecast, sending 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 million to $565 million 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 $262 million. It also announced a new share buyback target of at least $130 million for 2025, compared with an earlier goal of $100 million.
The global office rental firm said its managed and franchise business reported a 26% growth in revenue to $361 million, lifting total system revenue to $2.16 billion for the six months ended June 30.
(Reporting by Ankita Bora in Bengaluru; Editing by Rashmi Aich and Sonia Cheema)
