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Global executive search revenue fell 1.2 percent at Korn/Ferry International Inc. (NYSE: KFY) in the company’s fiscal third quarter ended Jan. 31 compared with the same period last year. However, revenue rose 17.5 percent in its Futurestep division — which provides recruitment process outsourcing, project recruitment and talent consulting. In addition, third-quarter revenue in the Los Angeles-based company’s leadership and talent consulting division rose 46.8 percent, fueled by its acquisition of PDI Ninth House and Global Novations.
Third-quarter executive search fee revenue fell in all geographies except South America:
- North America executive search fee revenue: $71.3 million, -1.0 percent
- Europe, the Middle East and Africa: $33.6 million, -2.4 percent
- Asia Pacific: $18.3 million, -0.4 percent
- South America: $7.3 million, up 1.1 percent
Meanwhile, Futurestep revenue benefited from an increase in revenue in RPO and middle management recruitment, according to the company. Revenue in the division rose 17.5 percent to $30.4 million in the third quarter.
Revenue in Korn/Ferry’s leadership and talent consulting operations rose 46.8 percent to $41.2 million in the third quarter. Excluding the acquisitions of PDI Ninth House and Global Novations, revenue rose 5 percent, according to the company.
Total global fee revenue at Korn/Ferry rose 8.6 percent to $202.0 million. The increase was 2 percent excluding the acquisitions.
Net income fell 19.1 percent in the third quarter to $9.5 million. Korn/Ferry included a restructuring charge of $4.4 million in the quarter related to its leadership and talent consulting division.
Korn/Ferry International Inc. (NYSE: KFY)
For the three months ended Jan. 31, 2013, compared with the same period a year ago.
Fee revenue: $202.0 million, +8.6 percent
Net income: $9.5 million, -19.1 percent