KPMG International announced that its member firms’ aggregated revenues were $29.22 billion for the fiscal year ended Sept. 30, 2020, off slightly from the $29.75 billion they reported for FY 2019, due to the impact of the global coronavirus pandemic.
Before the pandemic, the member firms were on track to an aggregate growth rate of 5 percent for 2020, but by the end of September, that had dipped to -1 percent. KPMG also noted that underlying net sales and billable hours continued to grow through the period.
The Americas region was the hardest hit, with local revenues dipping 3 percent, while Asia-Pacific was a bright spot, with revenue growing 3 percent. In terms of service areas, audit remained roughly flat, while tax and legal services and advisory services both dropped by 1 percent.
Advisory services are the largest source of member firms’ revenue, accounting $11.67 billion, followed closely by audit, with $11.07 billion. Tax and legal services brought in $6.48 billion in FY 2020.
“I’m tremendously proud of our global organization and how we have supported each other and clients through this very turbulent year,” said global chairman and CEO Bill Thomas, in a statement. “The health and safety of our people has been our top priority, and at the same time, we have stayed laser-focused on executing against our ambition and strategy. First and foremost, this means delivering excellence, and maintaining the highest levels of quality and integrity in all areas of our work. It also means investing in our talent and the digital capabilities that will drive our growth.”
Thomas confirmed that KPMG would continue its multi-year, $5 billion investment in technology, innovation and staff.
“The trend to digitalization has been accelerated by the pandemic,” he said. “We are innovating and working closely with our strategic alliances to help clients digitally transform their businesses as well as continuing to develop and roll out our own digital platforms.”
Besides coronavirus-related services, KPMG’s member firms reported strong demand for regulatory-driven transformation services, cybersecurity services, legal services, and audits.
In 2020, KPMG launched KPMG Impact, an ESG and sustainability initiative aimed at clients, and also announced that it plans to become a net-zero emitter of carbon by 2030. (See story.)
