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View All NewsKorn Ferry total fee revenue up 7% amid organic growth across business lines
Korn Ferry International Inc. (NYSE: KFY) reported total fee revenue rose 6.8%, or 7.7% on a constant currency basis, in its fiscal first quarter ended July 31. Organic growth across all business lines contributed to the increase.
Net income at the Los Angeles-based provider of executive search and other services jumped. Korn Ferry had posted net restricting charges of $280,000 in the first quarter compared restructuring charges of $24.5 million in the year-ago quarter.
| (US$ thousands) | Q1 2018 | Q1 2017 | % growth |
| Fee revenue | $401,254 | $375,621 | 6.8% |
| Net income | $29,429 | $4,068 | nm |
Quote
“We are making substantial investments in our operations and offering progressive solutions for the talent and organizational challenges faced by our clients,” said CEO Gary Burnison.
Fee revenue by segment and geography
| (US$ thousands) | Q1 2018 | Q1 2017 | % growth |
| Executive search | |||
| North America | $91,833 | $81,802 | 12.3% |
| Europe, the Middle East, Africa | $40,121 | $35,370 | 13.4% |
| Asia Pacific | $21,578 | $19,626 | 9.9% |
| Latin America | $7,659 | $9,563 | -19.9% |
| Total executive search | $161,191 | $146,361 | 10.1% |
| Hay Group | $179,453 | $174,582 | 2.8% |
| Futurestep | $60,610 | $54,678 | 10.8% |
Guidance
Korn Ferry expects second-quarter fee revenue to range between $412 million and $428 million, a year-over-year increase of between 2.5% and 6.5%.
Share price and market cap
Shares in Korn Ferry rose 6.27% to $35.26 in late-morning trading today and the company had a market cap of $2.04 billion, according to Yahoo.