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World – Korn/Ferry revenue grows

18 June 2013

Executive Search firm Korn/Ferry International (NYSE: KFY) announced its year-end results, reporting an annual increase of +3% in total revenue which amounted to $849.7 million. Net income in the year fell -37% to $33 million.

Korn/Ferry International is among the 50 largest staffing firms in the world, according to research by Staffing Industry Analysts.

The recruiter also released its latest figures for the three months to April (Q4), reporting an increase of +15% in fee revenue equating to $227.9 million. Net income in the quarter rose to $12 million from $12.2 million a year ago.

 “I am pleased with our strategic progress and operating results for the fourth quarter, which includes accelerating the integration of our recent acquisitions as well as further diversifying and differentiating our company,” said Gary D. Burnison, CEO of Korn/Ferry International.

Korn/Ferry’s most profitable segment, Executive Recruitment, reported decreased fee revenues across three regions during Q4 compared with the same period last year with South America recording the biggest decline of -9% to $7.8 million. Europe, Middle East and Africa fell by -1% to $32.7 million during Q4, with Asia / Pacific recording a -2% drop in fee revenue to $19.1 million during the period. North America was the only region to report an increase in fee revenue during Q4 of +2% equating to $77.5 million. Across the globe, revenue remained relatively steady, falling by less than -0.1%. 

Company revenues were boosted by the company’s Leadership and Consulting business, which reported a +90% increase in fee revenue during Q4 to $60 million, compared with Q4 2012.  The recruitment process outsourcing division, Futurestep, reported a +6% increase in fee revenue during Q4 to $30.9 million, during the same period last year. 

Looking ahead, the company said: “Assuming worldwide economic conditions, financial markets and foreign exchange rates remain steady, fee revenue is expected to be in the range of $215 million to $227 million in Q1’14.”

After the earnings announcement on Monday, the company’s share price closed at $18.11, an increase of +4.86%. Based on this stock price, Korn/Ferry International has a market value of $881.61 million. 

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