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KPMG 2008 revenues grow 14.5 per cent to US$22.7 billion

KPMG, the global network of professional service firms providing audit, tax and advisory services, 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.

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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.

Czech Republic enjoys growth of nine percent

KPMG in the Czech Republic and the Central and Eastern Europe region as a whole has enjoyed substantial growth. “In the Czech Republic we have generated revenues of nearly CZK 1.7 billion, an increase of nine percent year-on-year. Despite the growing financial crisis, the past year was successful for us in the Czech Republic, and not just for our financial services. We increased the number of our clients, invested in employee recruitment, and saw a very positive trend in our CSR work, with a large number of our employees taking part in various socially beneficial activities," said František Dostálek, the managing partner of KPMG in the Czech Republic and CEO of KPMG in Central and Eastern Europe.

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 Timothy P. 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.

EMA region

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, KPMG in the Netherlands and KPMG in Belgium voted this year to join the KPMG merger in Europe — alongside the U.K., Germany and Switzerland. KPMG Europe LLP is Europe’s largest fully integrated accounting firm.

BRIC countries

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.

Thinking beyond

“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.”