KPMG Reports Revenue Growth
January 27th 2005
KPMG Reports Revenue Growth Of 14.7% To $13.44 Billion
KPMG, the global network of professional services firms providing audit, tax and advisory services, today announced member firm combined revenues of US$13.44 billion for the most recent fiscal year ended September 30, 2004, an increase of 14.7 percent in U.S. dollars compared with a year ago. In local currency terms, KPMG’s revenue growth worldwide during the year was 7.3 percent.
“KPMG achieved the strongest global growth rate among the Big Four this year, amidst lingering economic uncertainty, significant change in the regulatory environment, and unprecedented scrutiny of our profession,” said Mike Rake, Chairman of KPMG International.
Total composite revenues of member firms of KPMG International for fiscal year 2004 represents an increase of US$1.72 billion over the prior year’s restated results.
Rake noted that KPMG exited various businesses around the globe during fiscal 2004, including full-scope legal services and certain advisory services, to focus on higher-demand services. Fiscal year 2003 financial results were, therefore, restated to reflect the discontinued operations. As a result of exiting those activities, fiscal 2003 restated results also reflect the reclassification of selected audit, tax and advisory services in various geographies.
KPMG International fiscal 2004 member firm combined revenue results reflect a strong performance across all functional businesses: Audit Services rose to US$6.42 billion, up 15.9 percent versus US$5.54 billion the previous year (8.9 percent in local currencies); Tax Services increased to US$3.11 billion, up 5.8 percent versus US$2.94 billion in fiscal 2003 (down 0.7 percent in local currencies); and Advisory Services recorded US$3.91 billion versus US$3.24 billion a year ago, a gain of 20.7 percent (11.6 percent in local currencies).
KPMG’s three geographic regions worldwide achieved similar positive gains. Asia Pacific attained the strongest regional year-to-year growth, where member firm combined revenues rose to US$1.67 billion, an increase of 35.8 percent versus $US1.23 billion last year (24.5 percent in local currencies). In the Europe, Middle East and Africa region, member firm combined revenues reached US$6.84 billion, a gain of 15.2 percent versus US$5.94 (3.8 percent in local currencies). In the Americas, fiscal 2004 composite revenues were US$4.93 billion, an increase of 8.4 percent versus US$4.55 in fiscal 2003 (7.3 percent in local currencies).
Rake said the dramatic annual growth in the Asia Pacific region this year was spurred by the final integration of former Andersen firms in Japan, Indochina, and Thailand, and also helped in great part by high demand for quality audit, tax and advisory services from the burgeoning China market.
“We enter 2005 committed to being a multidisciplinary organization, clear in our purpose to provide audit, tax and advisory services. Audit and non-audit clients alike demand multidisciplinary skills and capabilities,” Rake said. “We also need multidisciplinary skills and capabilities to carry out sophisticated audits and provide a varied and challenging career experience for the best people.”
Rake added that KPMG International also today released its 2004 annual report, which can be downloaded at www.kpmg.com. This year’s annual report highlights overall performance with messages from KPMG leadership, a summary of business results, and an in-depth review of KPMG’s audit, tax and advisory services, as well as fiscal 2004 results by industry line of business.
Global Client Focus
Robert W. Alspaugh, KPMG International CEO, added, “Our focus on large, global clients continues to support our business growth while acting as a catalyst for our continuous improvement for all clients that our member firms serve.
“KPMG’s number-one priority is to deliver quality services. We are keenly aware that this begins with an audit that inspires confidence in the capital markets and the investing public – and we continue to focus on how we can further drive quality in all we do,” Alspaugh said.
Rake also noted that, “Our reputation and performance is entirely dependent on the valuable contributions made by our 94,000 people, who have proven they can work with a broad range of client and stakeholder cultures, contributing an array of fresh insights and perspectives on key client issues.”
About KPMG International
KPMG International is the coordinating entity for a global network of professional services firms, providing audit, tax, and advisory services, with an industry focus. The aim of KPMG International member firms is to turn knowledge into value for the benefit of their clients, people, and the capital markets. With nearly 94,000 people worldwide, member firms provide audit, tax, and advisory services from 717 cities in 148 countries.