Towers Watson Reports Strong Second Quarter Earnings
Second Quarter Company Highlights
For the quarter, the Benefits segment had revenues of $519 million, an increase of 9% (10% increase constant currency) from $476 million in the prior-year second quarter. Retirement, Technology and Administration Solutions and International all had double digit constant currency revenue growth this quarter. In the Americas region, Retirement had constant currency revenue growth in the teens, driven by “Bulk Lump Sum” projects, the work on payouts that relate to client pension de-risking efforts. Health and Group Benefits had high-single digit constant currency revenue growth this quarter. The Benefits segment had a Net Operating Income (“NOI”) margin of 36% in the second quarter of fiscal 2013.
Risk and Financial ServicesFor the quarter, the Risk and Financial Services segment had revenues of $208 million, an increase of 1% (1% increase constant currency) from $205 million in the prior-year second quarter. Investment Consulting had low-double digit constant currency revenue growth in all regions. Risk Consulting and Software and Brokerage both had single digit percentage constant currency revenue declines. The Risk and Financial Services segment had an NOI margin of 22% in the second quarter of fiscal 2013. Talent and Rewards For the quarter, the Talent and Rewards segment had revenues of $176 million, an increase of 4% (5% increase constant currency) from $169 million in the prior-year second quarter. Executive Compensation led the segment with constant currency revenue growth in the mid-teens, driven by regulation and governance activity in EMEA. Rewards, Talent and Communication constant currency revenues increased by mid-single digits. Data, Surveys and Technology constant currency revenues declined by low-single digits. The Talent and Rewards segment had an NOI margin of 34% in the second quarter of fiscal 2013. The first half of the year typically has stronger margins due to the seasonality of the business.
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