Willis Towers Watson has announced financial results for the second quarter ended June 30, 2019.
“We are pleased with our financial results for the second quarter and first half of fiscal 2019. For the second quarter, we delivered 6 percent organic revenue growth, and each of our business segments demonstrated healthy growth in revenue and operating income margin, contributing to a double-digit increase in adjusted operating income growth for the overall Company,” said John Haley, Willis Towers Watson’s chief executive officer. "We are also excited to announce the successful completion of the TRANZACT acquisition, which will rapidly accelerate Willis Towers Watson’s direct-to-consumer U.S. healthcare strategy and significantly strengthen Willis Towers Watson’s growth profile in the healthcare space. This acquisition coupled with our highly differentiated capabilities and disciplined management of the business, leaves us confident in our ability to continue to drive sustainable, profitable growth and deliver value for our clients and shareholders.”
Company Highlights
Revenue was $2.05 billion for the second quarter of 2019, an increase of 3% (6% increase constant currency and organic) as compared to $1.99 billion for the same period in the prior year.
For the first half of 2019, revenue was $4.36 billion, an increase of 2% (5% increase in constant currency and organic) as compared to $4.28 billion for the same period in the prior year.
Net income attributable to Willis Towers Watson for the second quarter of 2019 was $138 million, an increase of 138% from $58 million for the prior-year second quarter. For the quarter, diluted earnings per share were $1.06 and adjusted diluted earnings per share were $1.78. The U.S. GAAP tax rate for the quarter was 19.7%, and the adjusted income tax rate for the quarter used in calculating adjusted diluted earnings per share was 21.4%.
For the first half of 2019, net income attributable to Willis Towers Watson was $425 million, a 56% increase from $273 million for the same period in the prior year. Diluted earnings per share for the first half of 2019 were $3.26, and adjusted diluted earnings per share were $4.76. Net income attributable to Willis Towers Watson and diluted earnings per share for the first half of 2019 included pre-tax $6 million of transaction and integration expenses related to the TRANZACT acquisition. For the first half of 2019, the U.S. GAAP tax rate was 19.1%, and the adjusted income tax rate used in calculating adjusted diluted earnings per share was 20.6%.
Net income for the second quarter of 2019 was $149 million, or 7.3% of revenue, an increase from net income of $65 million, or 3.3% of revenue for the prior-year second quarter. Adjusted EBITDA for the second quarter of 2019 was $425 million, or 20.8% of revenue, an increase from adjusted EBITDA of $392 million, or 19.7% of revenue for the prior-year second quarter.
For the first half of 2019, net income was $442 million, or 10.1% of revenue, an increase from net income of $286 million, or 6.7% of revenue for the same period in the prior year. Adjusted EBITDA for the first half of 2019 was $1 billion, or 23.5% of revenue, an increase from adjusted EBITDA of $949 million, or 22.2% of revenue.
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