The performance of the professional tax and professional segments of its Tax and Accounting business was strong for That weakness left Tax and Accounting revenue up by only 2 percent over 2015, 4 percent before currency.
And with its two largest segment—financial and risk and legal—each showing one percent declines in revenue, company also registered a drop in the top line as revenue of $11.17 billion was down one percent from $11.26 billion the prior year. That total was up on percent before currency.
Nevertheless in the company's recent earnings webcast, CEO James Smith was confident improvements in the long-depressed financial and risk business would continue. "We are forecasting improving revenue growth for all three businesses this year," Smith said.
Net income for the most recently ended year of $3.15 billion was almost two and a half times $1.3 billion a year ago. That was by $2.1 billion in earnings from discontinued operations, up sharply from $184 million the prior year. Earnings from continuing operatins of $1.06 billion were down 6.5 percent from $1.13 billion in 2015.
For the year, Tax and Accounting revenue reached $1.45 billion, up from $1.42 billion. EBITDA for 2016 was $414 million, down 9 percent from $456 million, the year before, off 11 percent before currency adjustments. Operating profit fell to $283 million, a decrease of 17 percent from $343 million, down 20 percent before currency. The earnings decline stemmed from the weakness in the government business along with increased investment in the unit's operation.
Fourth-quarter revenue for Tax and Accounting was $416 million, up 1 percent from $410 million in last year's corresponding period, 2 percent before currency. Operating profit for the most recently ended period of $86 million was 35-percent lower than $132 million a year earlier, off 37 percent before currency.
