|WNS (HOLDINGS) LTD filed this Form 6-K on 01/17/2019|
WNS Announces Fiscal 2019 Third Quarter Earnings,
Revises Full Year Guidance
NEW YORK, NY and MUMBAI, INDIA, January 17, 2019 WNS (Holdings) Limited (WNS) (NYSE: WNS), a leading provider of global Business Process Management (BPM) services, today announced results for the fiscal 2019 third quarter ended December 31, 2018.
Reconciliations of the non-GAAP financial measures discussed below to our GAAP operating results are included at the end of this release. See also About Non-GAAP Financial Measures.
Revenue in the third quarter was $199.7 million, representing a 5.9% increase versus Q3 of last year and a 0.3% increase from the previous quarter. Revenue less repair payments* in the third quarter was $195.9 million, an increase of 5.8% year-over-year and a 0.2% increase sequentially. Excluding exchange rate impacts, constant currency revenue less repair payments* in the fiscal third quarter grew 9.1% versus Q3 of last year and 0.1% sequentially. Year-over-year, fiscal Q3 revenue improvement was driven by healthy organic growth across key verticals, services, and geographies, which more than offset headwinds from currency movements and hedging losses. Sequentially, organic revenue growth was largely offset by seasonality in our travel business.
Operating margin in the third quarter was 16.7%, as compared to 13.6% in Q3 of last year and 14.5% in the previous quarter. On a year-over-year basis, margin improvement was the result of increased productivity, favorable currency movements net of hedging, and operating leverage on higher volumes. These benefits more than offset the impact of our annual wage increases. Sequentially, margins improved due to increased productivity and favorable currency movements net of hedging.
Third quarter adjusted operating margin* was 23.0%, versus 19.9% in Q3 of last year and 21.0% last quarter. Explanations for the adjusted operating margin* movements on a year-over-year and sequential basis are largely the same as described for GAAP operating margins above.
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