KPMG 2007 global revenues now $19.8 Billion
Date: 28-11-2007
Source: PR Newswire
KPMG, the global network of professional service firms providing Audit, Tax and Advisory services, today announced that member firm combined revenues increased to US$19.8 billion for the fiscal year ending September 30, 2007, versus US$16.9 billion for the prior fiscal year, reflecting double-digit growth across all of KPMG's service lines.
KPMG's combined revenues represent growth of 17.4 percent in U.S. dollars and growth of 12.7 percent in local currency terms.
"These record results reflect a strong global business environment for our services and further validate our focus on four strategic priorities: Professionalism and Integrity, being an Employer of Choice, Quality Growth and Global Consistency," said Timothy P. Flynn, Chairman, KPMG International.
"The globalization of the world's economy, the dynamic regulatory environment and the market pressure on companies to transform themselves all contributed to increased demand for KPMG's services," Flynn said.
Service Line Revenues
Revenues in 2007 were strong across all three of KPMG's core businesses. For Audit services, where growth was particularly strong in Asia Pacific and among the emerging economies, revenues in fiscal 2007 increased 13.3 percent to US$9.39 billion. During the year, KPMG LLP, the U.S. firm, regained the number one position as the auditor for the largest U.S.-based bank audits, ranked by the share of bank assets audited and the number of audit clients among U.S. public accounting firms.
Advisory services experienced growth in all regions and grew fastest at 22.2 percent to US$6.43 billion, fuelled by M&A activity, heightened regulations and demand for performance improvement. We saw growth in all service lines; internal audit and regulatory services, forensic services, transaction services, information technology advisory services, financial risk management services, corporate finance, restructuring services, accounting advisory services and business performance services.
Combined revenues for Tax services grew 20 percent to US$3.99 billion, on the basis of strong performance in all regions globally. An ever increasing focus on risk and controls around tax, coupled with a more rigorous regulatory environment, increased the demand from multinational clients for such services as international tax, transfer pricing and trade customs assistance, and tax risk and controls assessment services.
Asia Pacific Region
The Asia Pacific region's revenue grew 21.6 percent to US$2.55 billion in FY07, driven by strong performance across all practice areas in many countries, with both Japan and China showing particularly strong growth. In the Asia Pacific region, the influence of Private Equity funds, strong overall M&A activity and the maturation of the capital markets have been providing robust opportunities for all of KPMG's services. Multinational companies are capitalizing on the investment in the booming domestic economies of China and Vietnam, and back office and IT outsourcing operations are expanding in Malaysia and the Philippines.
KPMG continues to invest in and grow its national practices to support the global network. In China and Hong Kong combined, KPMG has grown headcount 32 percent in the past year to 7,000 professionals. KPMG opened new offices in Fuzhou, Qingdao and Shenyang. The KPMG member firm in Japan also experienced rapid growth in FY07, adding a significant number of new clients, and increasing headcount 20 percent this year.
EMA Region
For the EMA (Europe, Middle East and Africa) region, combined KPMG member firm revenues increased 20.9 percent to US$10.67 billion. In EMA, KPMG member firms in the UK, Germany and Switzerland agreed to merge to form KPMG Europe LLP, which now has a combined total of more than 18,000 partners and staff serving clients. Across the EMA region, results were particularly strong in Central and Eastern Europe, India and the CIS, as well as such national markets as Ireland and Luxembourg. Anticipating further growth in Turkey, our headcount was increased 43 percent. In India, KPMG opened new offices this year in Pune, Hyderabad and additional markets, and headcount was increased 32 percent.
Americas Region
In the Americas region, FY07 revenue grew 10.6 percent to US$6.59 billion. The U.S. firm posted double-digit growth with strong growth across all three of its interdependent businesses. Latin America also recorded robust growth of 24 percent, with headcount increasing 23 percent in Brazil.
Emerging Economies
KPMG continues to achieve exceptional performance in the BRIC countries (Brazil, Russia, India and China), increasing aggregate revenues by 41 percent in the past year.
KPMG's Outlook
"As our clients continue to respond to the opportunities offered by the growth of free markets and emerging economies, we will continue to leverage the strength of our national practices, and globalize our people, services, infrastructure and risk architecture to respond to our clients' needs," said Flynn.
KPMG has instituted a range of programs designed to assure that KPMG professionals have rich international experience, contributing to the ability to respond consistently in every part of the world to the needs of an increasingly global client base.
"We have global training programs that involve new hires through lead partners. We have also established several programs designed to give younger managers rotational international assignments to round out their development. Nearly 2,500 KPMG professionals from 90 countries were on international assignments this year, reflecting the crucial developmental value of international experience," said Flynn. "Leveraging our global people resources means we can draw upon the best talent at KPMG member firms for our clients anywhere in the world."
"Both globally and in our national markets, as a profession, we play an invaluable role in ensuring the integrity of the capital markets and the accuracy of financial information worldwide," Flynn added. "Our services are in higher demand than ever before, and we are attracting a great talent pool to the profession, with deep vertical skills such as information technology, risk analysis, and international tax, in addition to traditional accounting and auditing."
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