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KPMG reports 2010 revenues of $20.6 billion

AMSTERDAM - KPMG, the global network of professional services firms providing Audit, Tax and Advisory services, on Thursday announced member firm combined revenues totalling $20.63 billion for the fiscal year ending September 30, 2010, versus $20.11 billion for the prior fiscal year, representing a 2.6 per cent increase in US dollars; a 0.1 per cent increase in local currency terms.

“These combined FY10 revenues overall reflect positive and improving business performance across the KPMG network of firms and functional businesses worldwide,” said Timothy P. Flynn, Chairman of KPMG International.

“This improvement underscores the strength of our brand and that, in a significantly changing economic and regulatory environment, clients and stakeholders value how the high-performing people of KPMG are cutting through complexity, delivering informed perspectives and clear solutions to them,” he said.

For the EMA (Europe, Middle East and Africa) region, combined KPMG member firm FY10 revenues totalled 10.83 billion versus $10.73 billion last year, an increase of 0.1 per cent in local currency terms and a 0.9 per cent increase in US dollars.

In the EMA region, the latter half of the year saw improved performance. India was the fastest growing among the largest KPMG member firms in the EMA region. Other strong performers included Africa, which attained 8.5 per cent local growth, Norway at 7.4 per cent, and France with 3.5 per cent growth this year.

Among the geographic regions, growth this year in Asia Pacific — KPMG’s strongest performing region — continued to demonstrate the far-reaching opportunities among developing markets. R

evenues in the BRIC countries as a group grew 7.5 per cent for the year. Also, the fastest growing among the largest member firms was India, growing in excess of 20 per cent, reflecting continued investment and growth in the Indian economy.

“Despite the persistent economic issues globally, KPMG’s commitment to emerging and high-growth markets has produced meaningful growth for those country member firms. KPMG continues to actively invest in these markets and to ensure our people have the international experience and the industry-specific competencies required in these geographies,” Flynn said.

“KPMG also continues to make significant investments in enhancing its global delivery model. These include expanding the scope of KPMG global centers in India, increasing our presence in China and other emerging and high-growth markets, and deepening our capabilities in strategic markets around the world,” he said.

“The past year also witnessed a return to growth of KPMG’s Advisory business, spotlighting the services that clients require in a very challenging and complex business environment,” Flynn said. “Notably, growth in the Asia Pacific region was driven largely by Advisory practice growth.

“There has been unprecedented change in the economic, regulatory, political, and social environments – and these changes are likely to accelerate,” he said. “Looking ahead, KPMG’s global strategy sets our focus on the opportunities with the highest growth potential.”

Global revenues for fiscal 2010 in KPMG’s Audit services totalled $9.91 billion versus $9.95 billion in aggregated revenues last year. This represented a 0.4 per cent decline in US dollars; a 2.9 per cent decline in local currency terms.

“KPMG has continued to invest heavily in new technology to support its professionals. This focus was most recently evidenced by the introduction of eAudIT this year, the leading edge, fully electronic global audit platform that has been in development for three years, including a number of pilots worldwide,” Flynn said.

KPMG’s Advisory services recorded combined global revenues of $6.57 billion in 2010, versus $6.07 billion last year, an 8.3 per cent rise in US dollars, and a 5.5 per cent increase in local currency terms.

Advisory grew across all three regions with particularly strong growth in the Americas at 10.8 per cent, and Asia Pacific at 9.9 per cent, as well as good growth of 2.6 per cent in the more mature EMA market.

The Performance and Technology group was the main driver of Advisory growth, increasing by 12.7 per cent, with double-digit growth in large member firms including Canada, the UK, France and the US and also in the emerging and high-growth markets of China, the Commonwealth of Independent States (CIS), India and Brazil.

Revenues for Tax services in 2010 totalled $4.15 billion across the firms compared with $4.09 billion in 2009, a 1.4 per cent increase in US dollars and a 0.7 per cent decline in local currency terms. Among the growth areas for Tax services in the last fiscal year were Transfer Pricing with 1.5 per cent growth, International Executive Services with 1.1 per cent, and Indirect Tax with 0.7 per cent.

In Asia Pacific, KPMG’s strongest performing region, member firms achieved combined revenues of $3.43 billion, representing 2.2 per cent growth in local currency terms and 11.7 per cent growth in U.S. dollars. Taiwan, Korea and Vietnam all had double-digit growth. Taiwan had 18.2 per cent growth, Korea 11.9 per cent growth, and Vietnam 11.7 per cent, all in local currency terms.

business@khaleejtimes.com