Executive search firm Korn Ferry International (KFY: NYSE) yesterday reported fee revenue for the company’s fiscal third quarter ending 31 January of USD 381.9 million, an increase of 13.3% in constant currency compared with USD 344.2 million last year. 

Korn Ferry reports that growth was primarily due to an increase in fee revenue associated with the acquisition of Hay Group that was completed on 1 December 2015, and organic growth in Futurestep fee revenue.

"I am pleased to report an 11% increase in fee revenue to $382 million and strong profitability with adjusted diluted earnings per share of $0.53 and adjusted EBITDA of approximately $55 million during our recently completed third quarter, benefitted by the acquisition of Hay Group," said Gary D. Burnison, CEO of Korn Ferry.  "I'm confident the steps we have taken since combining with the Hay Group – broadening our solutions, unifying two outstanding workforces and streamlining our operations – have not only created the world's leading organizational and people advisory firm, but a transformational platform for growth and scale."

Fee Revenue by Segment and Geography

Looking forward, Korn Ferry states that assuming worldwide economic conditions, financial markets and foreign exchange rates remain steady, on a consolidated basis, Q4 FY 2017 fee revenue is expected to be in the range of $398 million and $412 million.

In trading yesterday, Korn/Ferry International closed at $30.84, down 3.78% on the day and 3.84% below its 52-week high of $32.07, set on 3 March 2017. Based on its current share price, the company has a market value of $1.77 billion.