Towers Watson reports a profit of $11m for the quarter ending 31 December, but Willis Group recorded a loss of $24m
Willis Group made a net loss of $24m in Q4 of 2015 and a net income of $373m for the full year, while Towers Watson recorded a net income of $11m for Q2 of its fiscal year 2016, ending 31 December 2015.
Willis Towers Watson is reporting results of its two constituent businesses separately for 2015. Prior to the merger on 4 January 2016, Towers Watson’s fiscal year ran from 1 July to 30 June.
Towers Watson recorded total revenues of $950m for the quarter ending 31 December 2015, a decrease from $985m for Q2 of fiscal year 2015. Net income decreased year-on-year from $110m to $11m for Q2 of fiscal year 2016. The current quarter results include approximately $81m of transaction and integration costs.
Willis Group reported a net loss of $24m for Q4 of 2015, compared to a profit of $76m for Q4 2014. For the full year, net income increased by 3% year-on-year from $362m to $373m at 31 December 2015.
“While I’m encouraged by the solid quarterly results of both Willis Group and Towers Watson, I’m even more excited that as of 4 January 2016, we are now officially Willis Towers Watson,” said John Haley, Willis Towers Watson’s chief executive.
“We are early in this journey, but our opportunities as a combined company look even better now than when we first announced the merger. It’s quite evident already, after the last seven months, that our aligned values, unwavering focus on clients and mutual drive to create a unique and powerful organisation are adding up to more than we could have anticipated. I’m very much looking forward to reporting on our future success.”
For 2016, Willis Towers Watson expects to report constant currency revenue growth in the low-double digits. The year over year impact of the change in foreign currency exchange rates is expected to negatively impact reported revenues by approximately $130 million.