KPMG, the global network of professional service firms providing Audit, Tax and Advisory services, today announced that member firm combined revenues increased to US$22.69 billion for the fiscal year ending September 30, 2008, versus US$19.81 billion for the prior fiscal year, reflecting double-digit growth across all of KPMG's service lines.
KPMG's combined revenues for fiscal year 2008 represent growth of 14.5 percent in U.S. dollars and growth of 8.4 percent in local currency terms.
"All of our businesses recorded solid growth last year, despite the deepening and acceleration of the global financial crisis in the last quarter of KPMG's fiscal year," said Timothy P. Flynn, Chairman, KPMG International.
Across KPMG's geographic regions and member firms, the Asia Pacific region grew fastest in 2008, while Russia saw revenues rise 64.5 percent in U.S. dollars. In India, revenues jumped 48.9 percent, in China revenues rose 25.8 percent, and in Africa revenues increased 16.5 percent, all in U.S. dollars.
Confronting Economic Challenges
"As we witnessed the accelerated impact of the credit crisis in recent months, it became clear that businesses in every region and in every sector are being confronted with unprecedented challenges to maintain liquidity, anticipate fluctuating customer demand and maintain operating performance," said Flynn.
"In a period of profound and unprecedented changes, our profession, and in particular KPMG firms are well positioned and committed to help clients address the significant challenges ahead," he said.
Flynn added, "KPMG provides a portfolio of governance, liquidity, and operations related service offerings through our core Audit, Tax and Advisory businesses that will help clients as they seek to re-define their risk management structure, achieve better cash management, sell assets, optimize costs, restructure their debt, prepare for the new regulation yet to come, and improve the depth and transparency of their financial reporting."
Service Line Revenues
Revenues in 2008 were strong across all three of KPMG's core businesses. For Audit services, where a faster rate of overall growth was recorded this year than in 2007, global revenues increased 13.9 percent to US$10.69 billion.
KPMG's Advisory services also achieved growth in all regions, with revenues increasing 13.0 percent to US$7.27 billion for the year.
Revenues for Tax services rose 18.3 percent to US$4.73 billion, again on the basis of strong performance in all regions globally.
Asia Pacific Region
The Asia Pacific region led the growth pace among KPMG's three global regions, with aggregated revenue growth of 21.6 percent to US$3.11 billion in FY08. KPMG China demonstrated particularly strong growth in the Asia Pacific region, with 25.8 percent growth in U.S. dollars. This year, member firms in the region also agreed to move toward a more aligned practice, in order to add to the strength and depth of client service in Asia Pacific.
Korea is expected to adopt a global accounting standard in the coming years. Japan has started to consider possible adoption of International Financial Reporting Standards (IFRS) in the foreseeable future. In response to this move, the firm in Japan established a 280-person practice to assist with IFRS conversion.
For the EMA (Europe, Middle East and Africa) region, combined KPMG member firm revenues increased 16.3 percent to US$12.41 billion.
In the EMA region, FY08 revenue results were particularly strong in Central and Eastern Europe (CEE), at 34.4 percent in U.S. dollars, the Commonwealth of Independent States (CIS) at 62.1 percent in U.S. dollars, and in Africa, at 16.5 percent in U.S. dollars, as well as in such national markets as Spain, which grew at 28.8 percent and Denmark where revenues rose 24.8 percent, both in U.S. dollars.
Also in the region, KPMG in Spain and KPMG in the Netherlands voted this year to join the KPMG merger in Europe - alongside the UK, Germany and Switzerland. KPMG Europe LLP is Europe's largest fully integrated accounting firm.
In the Americas region, FY08 revenue rose 8.8 percent to US$7.17 billion. KPMG in Brazil led national practices in the Americas with growth of 39.5 percent in U.S. dollars. In Canada, KPMG was selected this year as one of the 10 best employers to work for in 2009 from all companies in that country.
Among the innovative programs behind the recognition in Canada's Financial Post competition was KPMG's "Audit 1" program, which provides an unprecedented opportunity for a select number of new hires to receive global training.
In regulatory developments in the region, the United States, as well as Brazil, Mexico and Chile, among others, are expected to transition to International Financial Reporting Standards (IFRS) during the next several years. KPMG has delivered IFRS conversion services to more than 1,400 clients globally, and is bringing that depth of talent and experience to assist companies in the Americas as they convert to a global standard.
KPMG's outstanding overall performance in the BRIC countries (Brazil, Russia, India and China), saw aggregate revenues rise by 37.4 percent in U.S. dollars in the past year.
"An economic crisis like the one we're seeing gives virtually every business permission to drive change - from how it develops and delivers its products and services to how it approaches the market," said Flynn. "I'm confident that KPMG's ability to 'think beyond' borders and immediate economic concerns - and our focus on global industries and our deep understanding of clients' businesses - will prove to be a real advantage for our clients in helping them emerge stronger after this crisis."
About KPMG International
KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 144 countries and have 137,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss cooperative. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
The financial information set forth on these pages represents combined - not consolidated - information of the separate KPMG firms that perform professional services for clients and is combined here solely for presentation purposes. KPMG International performs no professional services for clients nor, concomitantly, generates any revenue.