KPMG today announced member firm combined revenues totalling $22.7 billion for the fiscal year ending September 30, 2011, a 10.1 percent increase in U.S. dollars, or 6.2 percent in local currency terms.
The strong performance spanned all geographic regions and resulted from a strategic commitment across KPMG member firms to invest in priority high growth markets; to focus on key industries such as financial services, healthcare, government, infrastructure, and energy; and to expand our capabilities in high-demand service offerings including Management Consulting and Tax services.
"To achieve double-digit growth in such a tough environment shows that we have the right strategy," said Michael J. Andrew, Chairman of KPMG International. "We achieved this by focusing on fundamentals and organic growth and making common investments in our strategic priorities."
KPMG recorded strong growth across all functions. Audit revenues rebounded to grow 5.8 percent in U.S. dollars, or 1.8 percent in local currency terms, to US$10.48 billion against strong competition in the marketplace and a difficult business environment. Tax revenues grew 13 percent in U.S. dollars, or 8.5 percent in local currency terms, to US$4.69 billion. Advisory revenues rose 14.8 percent in U.S. dollars, and 11.2 percent in local currency terms, to $7.54 billion.
Revenues grew across all KPMG's geographic regions, with gains in U.S. dollars of 16.6 percent in Asia Pacific, 10.7 percent in the Americas, and 7.7 percent in Europe, the Middle East, Africa, and India. Much of the growth came from high growth markets, with India growing at 25 percent and Brazil at 22 percent in local currency terms. In October, Andrew underscored KPMG's commitment to high growth markets when he became the first head of a Big Four accounting network to be based in Asia.
Other FY11 developments:
Investments in Building Teams, Strengthening Capabilities
• KPMG made significant investments in China, where revenue grew 12.9 percent in local currency terms, establishing a team in China to support KPMG China practices now operating in 41 member firms. KPMG also advised on three of the four largest China outbound merger and acquisition transactions.
• KPMG made significant investments to strengthen capabilities to serve clients in the Healthcare sector, completing or targeting acquisitions that are expected to add more than 40 new partners by the end of next year.
Specialized Skills, Acquisitions, Tools Created to Serve Clients
• KPMG invested over $100 million in its eAudIT tool, a leading edge electronic global audit platform, which was rolled out to member firms this year. The eAudIT tool ensures that engagement teams across the KPMG network of firms have the best accounting, auditing, and industry knowledge available to perform the most efficient, highest quality audits for businesses of every size.
• KPMG also created a number of global Centers of Excellence that provide access to specialized skills and expertise in areas like Financial Services Risk & Regulatory, Justice & Security, Defense, Insurance, IFRS, Healthcare, Islamic Finance, and Cloud Computing.
• KPMG's Management Consulting practice achieved FY11 revenue growth of 29 percent in U.S. dollars (24 percent in local currency terms) and has become, on a combined basis, a $2 billion business in just six years. With the acquisition of EquaTerra, KPMG jumped from fourth place to be the market leader in Shared Services and Outsourcing Advisory.
Emphasis on Sustainability, Talent
• As part of its Global Green Initiative, KPMG achieved a 29 percent reduction in net emissions per full-time equivalent employee over a three-year period. And in April, KPMG created a global Center of Excellence for Climate Change to harness expertise on effective sustainability strategies for clients.
• In September, the global talent consultant Universum announced that for the second consecutive year, students worldwide ranked KPMG No. 2 in the World's most attractive employers, second only to Google. The recognition validated KPMG's strategic direction and the investments that have been made to recruit and train its people.
• In August, KPMG announced that its member firms expect to hire approximately 75,000 campus graduates worldwide over the next three years, a 25 percent increase over historical targets. The hiring will play an important role in meeting KPMG's long-term global growth strategy.
Recognized for Diversity, Responsive to the Global Community
• KPMG also received recognition for its diversity initiatives. Notably, Working Mother magazine honored KPMG in the United States with its most prestigious recognition, naming the firm as a Top 10 organization on its 100 Best Companies list. KPMG in the UK was listed as one of the Top 50 Employers for Women by The Times. KPMG in Canada was named one of Canada's Best Diversity Employers for 2011.
• KPMG responded quickly and generously to the natural disasters that affected our global community in 2011. Through its Global Appeals, KPMG raised US$3.3 million for the Japan earthquake and tsunami, and made numerous donations of time and money at the member firm level in response to disasters across the globe such as the East African famine, New Zealand earthquake, Turkish earthquake and Thailand floods.
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