KPMG sees global revenue hit $29B
KPMG International reported Thursday that its global revenue increased 7.1 percent to reach a record $29 billion for the fiscal year ending Sept. 30, 2018.
That’s up from $26.4 billion in fiscal year 2017, when revenues climbed 4.8 percent over the prior fiscal year.
KPMG’s advisory practice grew at the fastest pace, climbing 9.9 percent in fiscal year 2018 to $11.47 billion, surpassing the 6.0 percent growth KPMG saw in FY 2017. The firm experienced strong growth in areas such as business transformation, cybersecurity, M&A deal advisory and accounting advisory services.
KPMG’s also saw global growth in its audit and tax services practices. Audit revenues grew 4.8 percent to $11.15 billion in fiscal 2018, up from $10.39 billion and 3.1 percent growth in fiscal 2017. The firm saw 5.7 percent growth in its audit practice in the Europe, Middle East, Africa and India region. However, the firm also came under fire in the U.K. over its audits of companies like Carillion and Ted Baker, and in South Africa for its audits of companies linked to the Gupta family, with calls in the European Union and the U.K. to split its audit practice from its consulting practice.
Revenues from KPMG’s tax practice increased 6.3 percent globally in fiscal 2018 to $6.34 billion, an increase from the 5.9 percent growth the network saw in fiscal 2017, thanks to demand for tax compliance services, along with domestic and international tax advisory services, transfer pricing, and VAT and sales tax advisory services.
On a regional basis, KPMG’s revenues in the Americas grew 6.2 percent in fiscal 2018, up from 4.4 percent in fiscal 2017. The Asia Pacific region experienced strong growth with revenues increasing 8.7 percent in fiscal year 2018, an increase over the 8.1 percent reported in fiscal 2017. The Europe, Middle East, Africa and India region saw revenues increase 7.3 percent in fiscal year 2018, up from 4.0 percent in FY 2017.
KPMG brought in more than 55,000 new hires in the past fiscal year, including 39,000 new graduates and other entry-level professionals, creating nearly 10,000 new jobs, bringing its global workforce to a record-high of 207,000 people. The firm said it has increased female diversity in its leadership ranks to 24 percent of partners and directors, although it has also been facing a gender discrimination lawsuit. Members of the firm have spent more than 500,000 hours of volunteering in the past 12 months, including approximately 100,000 hours of pro bono professional services. KPMG has also accelerated its investment in a multiyear program to develop more technology innovation, new client services and solutions, and partner with leading tech companies.
“We are making record investments in our business to help clients capitalize on the unprecedented transformation they are going through,” said KPMG International chairman Bill Thomas in a statement. “We are committed to continuously improving the quality of every service we provide, recognizing the vital role we perform for clients and capital markets.”