KPMG International today announced record-high aggregated network revenues of US$24.82 billion for the fiscal year ending 30 September 2014, representing a 6.3% increase in local currency terms over the previous year.
LONDON Wednesday 10 December 2014: KPMG International today announced record-high aggregated network revenues of US$24.82 billion for the fiscal year ending 30 September 2014, representing a 6.3% increase in local currency terms over the previous year.
“The companies we serve are operating in an increasingly complex, global and rapidly changing environment, which demands that we provide a broad range of services and solutions, seamlessly and consistently across the world. The quality and breadth of professional services we offer, combined with significant investments we’ve made to strengthen and broaden our services and capabilities, has enabled us to achieve strong and sustainable growth in 2014. At the same time, we have recruited 18,000 graduates and grown our headcount to 162,000 professionals,” said John B Veihmeyer, Chairman, KPMG International.
Strong regional results
The Americas delivered strong growth over the prior year, with revenues rising by 10.1%, driven by a 15.1% growth in Advisory revenues, 8% increase in Tax and an 8.7% increase in Audit revenues.
Europe Middle East and Africa (including India) revenues grew by 4.7%, with strong growth in Ireland, Spain, Switzerland and the UK, as many of the region's leading economies returned to growth.
The Asia Pacific region realized revenue growth of 3.8%, a positive performance in the context of the challenging economic conditions for many of the region’s leading economies.
KPMG has a longstanding commitment to supporting clients in the world's fastest growing economies and this focus drove 17.8% annual growth in revenues in India, 11.1% in the Middle East, 10.5% in Africa, 8.0% in ASEAN and 7.3% in China.
Growth in Audit, Tax and Advisory
KPMG saw increased growth in FY14 in Audit, Tax and Advisory.
Audit performed strongly, with member firm revenue increasing 3.8% to US$10.46 billion, up from 1.2% growth in the prior year. This growth was achieved against the backdrop of a global market for audit and assurance services, which has become increasingly competitive and challenging. We continue to see intense price pressure on audit engagements and the introduction of European Union audit reforms is driving an unprecedented level of audit tenders.
“The US$600 million multi-year investment to continuously enhance the quality of the KPMG audit, was maintained and extended, and we were proud to win a number of significant audit appointments including: American Airlines, Mapfre, ING, Panasonic, Renault and Vale." said John Veihmeyer.
Tax revenues grew 6.1% to US$5.27 billion, up from 4.2% in FY13, driven by an increased demand for tax compliance and tax advisory services in all three of our regions.
KPMG continued to lead the way in the global dialogue on the future evolution of tax transparency and morality, with
KPMG experts contributing research, thought leadership and articles to further this important debate. KPMG’s publicly available Global Tax Principles sets out the standards which KPMG tax professionals follow in their work delivering tax services for their clients.
Total Advisory revenues for the year were up by 10.4% to US$9.09 billion, up from 6.5% in FY13, driven by:
Investing for future growth
KPMG is at the mid-point of a five year, US$1 billion, global investment program aimed at developing new Data & Analytics solutions, incorporating state of the art technology and investing in high growth markets. As an example, in the past two weeks, KPMG has in the U.K. announced a strategic alliance with McLaren, which will apply McLaren Applied Technologies’ (‘MAT’) predictive analytics and technology to KPMG’s audit and advisory services, and taken an equity stake in Bottlenose, the market leading real time trend intelligence company.
KPMG also completed a number of other significant transactions through FY14 with respect to:
A leading choice for talent
KPMG has maintained its long-standing focus on recruiting top talent in FY14, recruiting a record high of 54,000 graduates and experienced hires, including 350 new partners who joined from outside. KPMG's global workforce grew by almost 7,000 to over 162,000 partners and staff, the highest number of individuals ever employed across the network.
John Veihmeyer added, “KPMG remains a leading choice for graduate talent, and we were proud to be voted in the Top 5 most attractive global employers in the annual Universum ‘World’s Most Attractive Employers to Work For’ poll of around 200,000 degree students.”
Other FY14 highlights:
Notes to editors:
Combined revenues of KPMG member firms by region (U.S. $ billion)
|Regions||Current||Prior||Local Growth (%)||US$ Growth (%)|
|Functions||Current||Prior||Local Growth (%)||US$ Growth (%)|
|Average Headcount (FTE)||Current||Prior|
The following global reports have also been issued by KPMG International today:
KPMG International Annual Review:
The International Annual Review reflects on our record of achievement over the past fiscal year, demonstrating the insights and expertise of KPMG professionals and the unrelenting focus on acting with integrity and quality in everything we do.
This report provides insights and details on how we continually strive to enhance audit quality, which is a direct reflection of our network's unwavering commitment to audit quality, an integral element of our business and culture.
KPMG International has been a signatory to the United Nations Global Compact since 2002. The 'Communication on Progress' report describes the ways in which we are implementing the ten principles of the Compact and supporting broader development objectives.
You can download the full report here.
About KPMG International
KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 155 countries and have more than 162,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
The financial information set forth represents combined information of the separate KPMG member firms that perform professional services for clients. The information is combined here solely for presentation purposes. KPMG International performs no services for clients nor, concomitantly, generates any client revenue.
KPMG Capital is an investment vehicle for KPMG member firms to invest in data and analytics tools and solutions. It is not open to third-party investment.