KPMG International announced annual combined revenues of $23.03 billion for the fiscal year ended Sept. 30, 2012, a 4.4 percent increase in local currency terms over the previous year, and a 1.4 percent increase in U.S. dollar terms.
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Though KPMG reported increased revenue across all functions, its growth rate was slower than in 2011. (See "KPMG Posts Strong Increase in Global Revenue.")
“2012 was a year of two distinct halves, with growth strongest at 6.4 percent in the first six months of the year and relatively weaker growth of 2.1 percent in the six months to September,” said KPMG International chairman Michael Andrew. “Growing our business against such a challenging economic backdrop is testament to the quality of our people and the strength of their relationships with clients.”
Growth was strongest in advisory services, which grew by 8.3 percent, to $7.86 billion, and in tax, which grew by 6.3 percent to $4.86 billion while audit revenues grew by only 0.9 percent, to $10.31 billion.
“The growth in advisory and tax underlines the strength of client demand for professional services,” said Andrew. “On the audit side, the market has never been more competitive and we are focused on continuing to improve audit quality, as evidenced by our significant investments in our global audit platform that surpassed $50 million, in addition to the $100 million invested over the past several years.”
The Americas delivered strong growth for the year, with revenues rising by 7 percent. The Europe, Middle East and Africa region reported increased revenues of 4 percent, while the Asia-Pacific region grew by only 1.1 percent, reflecting subdued growth in North Asia.
“Despite the volatility in the global economy this year, KPMG saw growth in every service line, every region, and every industry,” said John Veihmeyer, chairman and CEO of KPMG in the U.S. and the Americas. “The growth we are seeing reflects our ongoing efforts to strengthen key service areas, attract the world’s top talent, and seize growth opportunities in mature and emerging markets.”
KPMG firms in Argentina, Brazil, Chile, India and Turkey all grew by more than 20 percent, while revenue in Africa and Indonesia rose by over 10 percent.
In China, KPMG converted its Chinese member firm from a joint venture to a special general partnership. “I am proud that our Chinese member firm has grown from 30 employees only 20 years ago to 9,000 partners and staff today, with significant potential for future growth,” said Andrew.
KPMG also established member firms in Iraq and Mongolia in 2012, and now operates in 156 countries. It also increased its global workforce by over 5 percent, to more than 152,000 partners and staff.