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View All NewsKorn Ferry total fee revenue rises 17% in fiscal Q3
March 07, 2018
Korn Ferry International Inc. (NYSE: KFY) reported total fee revenue rose 17.2%, or 13.1% in constant currency, in its fiscal third quarter ended Jan. 31. The Los Angeles-based provider of executive search and consulting reported the increase was across business lines.
| (US$ thousands) | Q3 2018 | Q3 2017 | % change | % change (constant currency) |
| Fee revenue | $447,581 | $381,918 | 17.2% | 13.1% |
| Net income | $27,427 | $24,378 | 12.5% |
- Executive search fee revenue rose 14.4% on a constant currency basis to $180.4 million. The overall increase in fee revenue was attributable to higher fee revenue in the North America, EMEA and APAC regions.
- Hay Group fee revenue rose 8.3% in constant currency to $198.1 million, primarily driven by a $15.6 million increase in consulting services with the remaining increase of $6.8 million generated by the products business.
- Fee revenue at Futurestep rose 24.9% in constant currency to $69.1 million. The higher fee revenue was primarily driven by an increase in recruitment process outsourcing and professional search of $9.9 million and $6.0 million, respectively.
Fee revenue by segment
| (US$ thousands) | Q3 2018 | Q3 2017 | % change | % growth (constant currency) |
| Total executive search | $180,416 | $152,821 | 18.1% | 14.4% |
| Hay Group | $198,056 | $175,662 | 12.7% | 8.3% |
| Futurestep | $69,109 | $53,435 | 29.3% | 24.9% |
Fee revenue by geography
| (US$ thousands) | Q3 2018 | Q3 2017 | % change |
| Executive search | |||
| North America | $102,716 | $84,827 | 21.1% |
| Europe, the Middle East and Africa | $46,782 | $39,147 | 19.5% |
| Asia Pacific | $24,493 | $21,012 | 16.6% |
| Latin America | $6,425 | $7,835 | -18.0% |
Guidance
Korn Ferry expects fourth-quarter fee revenue to range between $448 million and $462 million, a year-over-year increase of between 10.3% and 13.8%.
Share price and market cap
Shares in Korn Ferry rose 10.82% to $48.02 as of 1:03 p.m. Eastern time today. The company had a market cap of $2.71 billion.