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Korn Ferry (NYSE: KFY) fee revenue rose 20 percent to a total of $242.2 million in the company’s fiscal third quarter ended Jan. 31. On a constant currency basis, fee revenue rose 21 percent at the Los Angeles-based executive search and leadership consulting firm.
Excluding the December 2012 acquisition of PDI Ninth House, a provider of leadership development and assessment solutions, fee revenue rose 14 percent on a constant currency basis.
Shares in Korn Ferry were up 9.6 percent in early afternoon trading to $28.31 and the company has a market cap of approximately $1.40 billion, according to Yahoo!
Korn Ferry divides its business into executive recruitment, leadership & talent consulting, and Futurestep.
Executive recruitment fee revenue rose 10 percent to $144.0 million.
Third-quarter executive search fee revenue rose in all geographies:
- North America executive search fee revenue rose 8 percent to $77.2 million.
- Europe, the Middle East and Africa fee revenue rose 17 percent to $39.1 million.
- Asia Pacific fee revenue rose 10 percent to $20.2 million.
- South America fee revenue rose 2 percent to $7.5 million.
Korn Ferry’s leadership & talent consulting business segment includes management assessment and executive coaching and development services. Third-quarter revenue in the segment rose 51 percent to $62.3 million. Adjusting for the PDI Ninth House acquisition, fee revenue increased 14 percent in the quarter.
Korn Ferry’s Futurestep division includes recruitment services for non-executive professionals and recruitment process outsourcing. Third-quarter Futurestep revenue rose 18 percent year over year to $35.9 million.
Net income rose to $21.3 million from $9.5 million in the year-ago quarter. The third quarter of the previous year included restructuring charges of $4.4 million, integration/acquisition costs of $2.5 million, and separation costs of $600,000.