Global executive search firm Heidrick & Struggles has seen revenues increase 4.1% driven by growth in its European operations, according to results for Q3 2016.

The results, published late yesterday, reveal net revenue increased 4.1% on a constant currency basis. Consolidated net revenue (revenue before reimbursements) increased by 3.7%, or $5.1m, to $143.5m from $138.4m in the 2015 third quarter.

However, the group also saw operating income fall to $12m, compared with operating income of $12.9m in Q3 2015.

According to the results, Europe was the main driver of third quarter revenue growth, up 26.8% or $6.9m (30.7% on a constant currency basis), with more than half of this growth coming from the contributions from Co Company and JCA Group, acquired in October 2015 and August 2016 respectively. 

Meanwhile year-on-year revenue growth in the Americas was flat in the third quarter and fell 4.9% or $1.2m in Asia Pacific (7.6% on a constant currency basis). 

Growth in the group’s consumer markets, industrial, healthcare & life sciences, education, and nonprofit & social enterprise industry practices, was offset by declines in the group’s financial services and global technology & services practices.

The group’s executive search and leadership consulting business saw net revenue increase 4.4% year-on-year, or $5.7m, to $134.9m from $129.2m in the 2015 third quarter. However, its culture shaping services business saw a decline in revenues with net revenue falling 6% or $0.6m, to $8.6m from $9.2m in the 2015 third quarter due to a lower volume of client work. 

Commenting on the results, Heidrick & Struggles' president and chief executive Tracy Wolstencroft said the group’s most notable investment has been in its people.  

“In the third quarter alone, we added 20 new search and leadership consulting consultants, including 14 through the acquisitions of JCA Group and Philosophy IB.  

“We also continued our investment in culture shaping services. We are encouraged by the progress being made in integrating the three leadership advisory boutiques acquired in the last year and are seeing an increasingly positive impact in client engagements."