Executive search fee revenue was roughly flat at Korn Ferry International Inc. (NYSE: KFY) in the fiscal second quarter ended 31 October 2016. However, revenue in its Futurestep division rose 12.5%, and top line fee revenue got a boost with the acquisition of the Hay Group in the third quarter of last year. As a result, total fee revenue rose 43.2% in Korn Ferry’s second quarter.

Fee revenue by segment and geography

"Globally, total new business in November finished up 2% year over year,” CFO Bob Rozek said in a conference call with analysts. “If historical patterns remain consistent with prior years, in December new business is expected to be seasonally weaker. It should be followed by a stronger January.”

“After acquiring Hay Group 12 months ago, we’re now a much more diversified, balanced firm – with half of our revenue mix coming from organisational and talent advisory services and the other half from talent acquisition solutions,” Gary D. Burnison, CEO, Korn Ferry, said. “The synergies and investments we’ve made during this calendar year have not only enhanced our performance, but have provided us with a platform to both shape and accelerate our own growth. Clients are increasingly gravitating to our complete offerings, which span recruitment, organisational design, talent strategy, assessment, leadership development, and compensation and reward services. As we enter 2017, we will continue our commitment to building a world-class people and organisational advisory firm.”

In trading yesterday, Korn/Ferry International closed at $29.00, down 6.66% on the day and 24.08% below its 52-week high of $38.20, set on 9 December 2015. Based on its current share price the company has a market value of $1.68 billion.