WTW Q4 revenue up 1% in 'solid finish'
Global broker WTW reported a rise in fourth-quarter revenue in what it says was a “solid finish to a strong year”.
For 2023, WTW expects mid-single digit organic revenue growth, as well as continued expansion of its adjusted operating margin, which improved to 32.4% in October-December – up 20 basis points over the prior year – and to 20.9% for 2022 – up 100 basis points.
WTW says fourth quarter revenue rose 1% to $US2.72 billion ($3.95 billion). Excluding foreign currency headwinds, it increased 4%.
For full year 2022, revenue slipped 1% to $US8.87 billion ($12.89 billion). It was up 4% on a like-for-like organic basis stripping out currency moves and M&A.
Net income for the fourth quarter was $US593 million ($861.94 million) and for full-year 2022 was $1 billion ($1.45 billion).
Both results were down by around three-quarters on a year earlier due to discontinued operations which sliced around $US2 billion ($2.91 billion) from the results.
Adjusted earnings per share were up 12% in the fourth quarter and 16% in 2022.
“The fourth quarter was a solid finish to a strong year for WTW,” CEO Carl Hess said. “Revenue and operating margins increased over prior year. In addition, for the full year, we delivered results that were in line with our expectations, including healthy organic revenue growth and adjusted operating margin expansion.
“In a complex operating environment, our focus, agility and resilience allowed us to deliver on our commitments. We enter 2023 with momentum.”
WTW last year reorganised its operations into a Risk & Broking business segment and a Health, Wealth & Career segment.
Risk & Broking revenue fell 2% in the fourth quarter while operating income fell 7% to $US269 million ($391 million).
“Broking generated organic revenue growth across all geographies, primarily driven by our global lines of business, most notably in construction and aerospace,” WTW said.
Health, Wealth and Career reported a 2% rise in revenue to $US 1.72 billion ($2.5 billion).
