KPMG Europe has reported a 0.4
percent drop in its combined pro forma revenue to €3.5
billion ($5.1 billion) for the year to 30 September 2009. This is
expected to jump significantly in 2010 with the addition of new
The combined turnover of KPMG’s UK, German,
Swiss, Spanish and Belgian practices decreased by less than 1
percent on the previous year on a pro forma basis at
constant exchange rates.
KPMG said its UK and German revenue was down 2
percent to €1.9 billion and €1.2 billion respectively.
Other countries together grew by 3 percent, on
a pro forma basis, to €0.4 billion.
Since the year-end, member firms in the
Netherlands, Luxembourg, the CIS and Turkey have joined KPMG
Europe. The combined group now comprises firms in 14 countries,
including the six in the CIS (Russia, Ukraine, Armenia, Georgia,
Kazakhstan and Kyrgyzstan), and has combined pro forma
revenues of €4.5 billion with 31, 000 employees.
Business as usual
The joint chairmen of KPMG Europe
John Griffith-Jones and Rolf Nonnenmacher described the performance
as “creditable” against the backdrop of the financial crisis.
“We might have hoped for better economic
conditions in our second year as a merged firm, but rather than put
our expansion plans on hold we have continued to pursue a whole
range of strategic initiatives that will shape our performance over
future years,” Griffith-Jones and Nonnenmacher stated.
“The combination of greater critical mass,
sector focus and shared knowledge enables us to bring [clients] better answers, faster.”
In terms of service lines, audit performed the
best with revenues up by 3 percent to €1.28 billion. Tax services
fell by 5 percent to €837 million due to the absence of mergers and
acquisitions activity, which led to a drop in demand for related
services. However, the practice continued to see strong demand for
transfer pricing services.
KPMG’s advisory services remained static at
€1.4 billion, which the firm said was down to it repositioning
towards restructuring and debt advisory work.