KPMG grows revenues to $30 billion, Advisory largest division
Global accounting and consulting firm KPMG has increased its revenues by 6% in local currency terms to just under $30 billion in its latest financial year.
“We are pleased to have achieved strong growth during an important transitional year for KPMG,” said Bill Thomas, the Global Chairman and CEO of KPMG International.
For the second year in a row, revenue growth was strongest in its Advisory arm, with revenues up 7.9% to $11.95 billion. Mark Goodburn, KPMG’s Global Head of Advisory, said that growth was lifted by strong demand for strategy, merger & acquisition and digital transformation services.
KPMG Advisory consolidated its position as the firm’s largest division, now generating some $800 million more than Audit, and remains KPMG’s best performing over a longer term period. “Our consultants help clients hone their strategies, align their operations across the enterprise, and become more customer centric,” said Goodburn.
Audit revenues for the year grew globally by 3.7% to $11.18 billion, but KPMG continued to see large investments flowing into the unit as it tries to beef up quality and transition the practice to a more digital-driven future-proof business model. “In a hyper-competitive global audit marketplace, we are making unprecedented investments to advance audit quality,” admitted William O'Mara, Global Head of Audit at KPMG.
The Tax & Legal Services division booked 7.8% higher revenues, up to $6.62 billion, driven by strong demand for KPMG’s multi-disciplinary tax and compliance services. Growth in the legal space was based mainly on further geographic expansion. “KPMG helps tax and legal leaders not only meet compliance obligations but also transform their departments,” remarked Jane McCormick, the firm’s Global Head of Tax & Legal Services.
Inorganic growth played its role in providing an impetus to growth. KPMG closed several deals in its 2019 financial year, including two in Australia; the purchase of insolvency specialist Ferrier Hodgson and Melbourne-based Love Agency. Meanwhile, in the UK, KPMG sold its pensions division to the unit’s management in a private equity backed buyout.
From a regional perspective, Asia Pacific delivered the fastest growth of 9.3% driven by 14% growth in Advisory, followed by the Americas region (6.6%) and Europe, Middle East and Africa and India (4.7%). Across its office network in 147 countries, KPMG now has more than 219,000 accountants, consultant and tax & legal advisors.
Preparing itself for the (digital) future, KPMG has announced it will pump $5 billion in innovation, people and technology over the coming five years. “This will enable us to enhance our leadership position in the digital transformation of professional services,” concluded Thomas.