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View All NewsWorld – Korn Ferry Q4 fee revenue rises 13% in constant currency
Korn Ferry International Inc. (NYSE: KFY) reported total fee revenue rose 12.7% in constant currency in its fiscal fourth quarter ended April 30. The increase on a reported basis was 17.1%. The Los Angeles-based provider of executive search and consulting reported the organic growth was driven by all three lines of business.
| USD thousands | Q4 2018 | Q4 2017 | % change | % change (constant currency) |
| Fee revenue | $475,364 | $406,065 | 17.1% | 12.7% |
| Net income | $41,160 | $26,924 | 52.9% |
Executive search fee revenue rose 13.9% on a constant currency basis to $190.7 million. The overall increase in fee revenue was attributable to higher fee revenue in all regions.
Hay Group fee revenue rose 7.3% in constant currency to $207.6 million, primarily driven by a $16.9 million increase in consulting services with the remaining increase of $5.6 million generated by the products business.
Fee revenue at Futurestep rose 26.7% in constant currency to $77.1 million. The higher fee revenue was driven by year-over-year increases in recruitment process outsourcing and professional search of $11.0 million and $8.0 million, respectively.
Fee revenue by segment was broken down as follows.
| USD thousands | Q4 2018 | Q4 2017 | % change | % growth (constant currency) |
| Total executive search | $190,669 | $162,266 | 17.5% | 13.9% |
| Hay Group | $207,551 | $185,100 | 12.1% | 7.3% |
| Futurestep | $77,144 | $58,699 | 31.4% | 26.7% |
Executive search fee revenue by geography was broken down as follows.
| USD thousands | Q4 2018 | Q4 2017 | % change |
| North America | $112,005 | $97,264 | 15.2% |
| Europe, Middle East and Africa | $45,476 | $37,210 | 22.2% |
| Asia Pacific | $24,612 | $20,061 | 22.7% |
| Latin America | $8,576 | $7,731 | 10.9% |
The group also posted full-year results which were as follows.
| USD thousands | FY 2018 | FY 2017 | % growth |
| Fee revenue | $1,767,217 | $1,565,521 | 12.9% |
| Net income | $133,799 | $84,181 | 58.9% |
Looking ahead, Korn Ferry expects fourth-quarter fee revenue to range between $450 million and $470 million.
In trading yesterday, Korn/Ferry International set a new 52-week high when it reached $68.34. Over this period, the share price is up 92.50%. Shares closed at $63.43, up 12.21% on the day. Based on its current share price the company has a market value of $3.22 billion.