KPMG Reports Record Revenues Of $12.2 Billion
KPMG International, the global professional services organization, today reported record revenues of US$12.2 billion for the fiscal year ended Sept. 30, 1999. KPMG Chairman Stephen G. Butler announced that KPMG's worldwide revenues grew 17 percent this year, versus last year's total of US$10.4 billion.
KPMG's growth was driven by each of the firm's functional businesses. "Among the largest revenue generators, Consulting services grew a remarkable 32 percent this year to $3.5 billion," Butler said. "Tax services rose 16.5 percent to $2.3 billion, and Assurance services grew by 9 percent, to $5.1 billion worldwide. Financial Advisory Services climbed 39 percent, to $885 million, while all other services accounted for $400 million," he said.
"In addition, we are pleased to report double-digit growth across our geographic regions," Butler said. "The Americas region advanced 19 percent, to $5.7 billion; Asia Pacific increased by 20 percent, to $1 billion; and the Europe, Middle East and Africa region reported a 15 percent growth rate, to $5.5 billion." Butler noted that in 1999, KPMG:
-- Launched KWorld, an advanced global knowledge management system that will serve as an on-line messaging, collaboration and knowledge-sharing platform for KPMG professionals as they serve clients around the world. Coupled with KPMG's global innovation enters for assurance, tax and consulting, KWorld helps to ensure that ideas and skills are rapidly translated and incorporated into the products and services that will help clients succeed.
-- Strengthened its existing alliance with Cisco Systems, Inc., announcing a forthcoming $1 billion investment in KPMG's market- leading Internet services business, focusing on telecommunications and enterprise markets.
-- Formed a joint venture called Qwest Cyber.Solutions LLC with Qwest Communications International Inc., the Internet communications company, to provide Internet-based end-to-end application service provider (ASP), application hosting (AH), and application management (AM) services. Qwest Cyber.Solutions will compete in the global market for applications management that analysts estimate will grow to $25 billion by 2001.
-- Enhanced its service strategy by moving toward three global operating regions: the Americas; Europe, Middle East and Africa; and Asia Pacific. The three regional operating units will allow the firm to deploy its resources and serve multinational clients with greater efficiency, effectiveness and speed.
"We see exciting prospects for KPMG as we head toward the creation of a truly global firm, managed on a global basis. KPMG International's fiscal year 1999 results reflect early implementation of some of the firm's global initiatives," Butler said. "We are removing national barriers to serving global clients and realizing KPMG's unique vision of the future, a vision that will be focused on a globally managed product line organization that services multinational clients wherever they operate.
"KPMG has adopted a vision of being the market leader in every business in which we choose to compete," he added. "Our strategy involves deploying our resources against selected priority markets and industries, around the world, to meet clients' needs in the new networked global economy. As the demand escalates for complex business services -- from mergers and acquisitions advisory services to Internet-enabled "next-generation" solutions -- we see growth opportunities across all our service lines around the world."
As previously announced, Butler became chairman of KPMG International effective October 1, 1999. He was named chairman of the new Americas region earlier this year. Butler has been credited as the chief architect of numerous strategic and client service innovations, developed within the U.S. firm under his leadership, to serve global clients. He remains chairman and CEO of KPMG LLP, the U.S. member firm.
KPMG International offers global capabilities in accounting, tax and consulting services. Its member firms have more than 103,000 professionals, including 7,000 partners, in 159 countries. KPMG's United States Web site is http://www.us.kpmg.com; the KPMG International site is http://www.kpmg.com