KPMG grows slower than Big Five rivals
KPMG International has reported global revenues of $13.5bn (£9.01bn), an increase of 11% on the financial year, but lower than the percentage increases reported by some of its rivals.
Revenue growth recorded for the year ended 30 September 2000 was 6% lowercompared with a figure of 17% growth recorded for the previous financial year.
KPMG’s slower revenue growth reflected tougher trading conditions in the professional services industry, but it still fell well behind other Big Five firms including Arthur Andersen, Deloitte Touche Tohmatsu and Ernst & Young whose global revenues climbed 15%, 14.1% and 14.1% respectively.
The increased revenue at KPMG was the result of a 22% rise in its financial services fee income, coupled with a 10% rise in its assurance business. Its consulting arm, which may soon go public in a partial flotation, grew by just one-third of the 32% rate recorded in 1999.
The drop in consulting growth has been attributed, in part, to weaknesses in the high-tech sector, which is predominantly serviced by the Big Five.
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