News

KPMG Reports 2009 revenues of US$20.1 billion

Asia Pacific, BRIC Member Firms Continue Growth Driven by Audit and Increase in M&A activity | Increased Investment in High Growth Markets

ČESKY: Celosvětové výnosy poradenských společností sítě KPMG dosáhly v roce 2009 20,1 miliardy dolarů

KPMG, the global network of professional service firms providing Audit, Tax and Advisory services, today announced member firm combined revenues totalling US$20.11 billion for the fiscal year ending September 30, 2009.

“While overall revenue results for the 2009 fiscal year reflected the global economic downturn, we were pleased that our continued investments in high growth markets resulted in continued growth in those country member firms,” said Timothy P. Flynn, Chairman of KPMG International. “The results reflect the resilience and expanding opportunities among developing markets, particularly in Asia where financial services revenues increased by more than 10 percent.”

KPMG’s strongest performing region was Asia Pacific, with local currency growth of 3.9 percent, driven largely by growth in the Audit practice across the firms. Revenues in the BRIC countries as a group grew 4.3 percent. Middle East and South Asia (MESA), where KPMG is also investing, was the fastest growing practice with a 25 percent growth rate.

Czech Republic

“The CEE region has been considerably affected by the global economic situation. The strongest impact on the revenues of KPMG firms was evident in the final months of last fiscal year, wiping out the modest growth of the previous period. In general, revenues in the region remained at the previous year’s level. A similar trend was seen in the Czech Republic, where tax and advisory services relating to mergers and acquisitions were severely hit. This was particularly the case in certain sectors such as real estate. Revenues therefore dropped by several percent, to CZK 1.5 billion," said Frantisek Dostalek, Managing Partner at KPMG Czech Republic and CEO of KPMG in Central and Eastern Europe, commenting on the results.

"Recovery and return to growth, albeit more modest than in the 2005-2008 period, is expected in the second half of 2010. We believe that we will see returns on our investments in strengthening teams providing businesses with advisory services that currently have particular relevance for these firms. Such services include lean management, IT costs management, restructuring and forensic services," he added.

Increased Investment in BRIC Countries

“KPMG continued its investment in the BRIC countries, increasing headcount by 11.5 percent this year. Even in a challenging economic environment, we’re committed to making long term investments to add specialized skills to support the clients in those regions. Our headcount in those countries as a group has nearly quadrupled in the past ten years,” Flynn said.

“The economic projections showing stronger global GDP growth in 2010, with especially strong growth predicted for these markets, is encouraging for the year ahead,” he said.

Heightened Need for Risk Management, Changes in Regulation Present Opportunities in 2010

“Risk Management has moved to the top of the Board agenda. That was reflected in this year’s results as we saw over 36 percent growth in services related to assessing market risk and implementing programs to monitor market and credit risk,” said Flynn.

Flynn added, “As we move into 2010, we continue to work closely with clients in the public and private sectors to help them meet the challenges presented by the current economic environment. KPMG member firms are helping them to improve cash management, optimize costs, and restructure their businesses. In addition, we are beginning to see growth in services designed to help clients navigate through a markedly changed regulatory environment in every part of the world.”

Asia Pacific Region

In KPMG’s strongest performing region, Asia Pacific, member firms achieved combined revenues of US$3.07 billion, representing growth of 3.9 percent in local currency terms; a slight 1.1 percent decline in U.S. dollars. Korea, Vietnam and Japan all recorded notable revenue growth in 2009.  Korea had 19.4 percent growth, Vietnam and Cambodia recorded 17.5 percent growth, and Japan had 7.2 percent growth, all in local currency terms.

Asia Pacific member firms are beginning to see an increasing number of M&A transactions especially in China and Korea.  International Financial Reporting Standards (IFRS) conversion engagements in Korea and Japan have contributed to growth and present future opportunities.

EMA Region

For the EMA (Europe, Middle East and Africa) region, combined KPMG member firm FY09 revenues totaled US$10.73 billion versus US$12.41 billion last year, a decline of 0.6 percent in local currency terms; a 13.5 percent decline in U.S. dollars.

In the EMA region, although FY09 revenues results in Western Europe were lower versus last year, overall business held up well in the face of a very challenging economy.  Middle East and South Asia (MESA) was the fastest growing sub-region in EMA and KPMG in Africa achieved 9.3 percent growth in local currency terms. 

Americas Region

In the Americas region, combined FY09 revenue totaled US$6.31 billion in 2009 versus US$7.17 billion last year, a decline of 8.6 percent in local currency terms, or 12 percent in U.S. dollars. 

Latin America was not as severely affected by the economic crisis as North America in 2009. Among those members firms in the Americas region that achieved revenue growth, Brazil recorded growth of 5 percent in 2009; Mexico grew revenues 8.2 percent; Venezuela grew 22.9 percent; and Chile’s revenues rose 22.7 percent, all in local currency terms. 

KPMG member firms in the Americas region also relied on their Audit and Industry market strengths during the year. KPMG Canada, for example, has the leading audit market share in Canada with the number one position in energy, financial services, and information, communications and entertainment. The U.S. firm maintained its leadership in the financial services sector.

Combined revenues of KPMG member firms by region (U.S. $ billion):