Deloitte member firms (Deloitte) reported record aggregate revenues today of US $34,2-billion for the fiscal year ending 31 May 2014.
In its fifth consecutive year of growth, Deloitte saw accelerated demand for its range of services in all regions of the world. The organisation’s aggregate revenues represent growth of 6,5% in local currency, or 5,7% in US dollars.
Growth was led by Consulting, which experienced double-digit growth (10,3% in local currency), followed by Tax & Legal (7,7%). Financial Advisory and Enterprise Risk Services also experienced strong growth with 6,8% and 4,2%, respectively. Audit experienced growth of 2,5%, reflecting growth even after accounting for the network’s significant investment in quality around its audit service.
Deloitte’s growth reflects its commitment to providing clients with high quality services through a multi-disciplinary model, delivering innovative solutions from strategy to implementation. Increasing client needs stemming from globalisation and changes in business models, technology, and regulations are expected to drive further opportunities in the year ahead.
The network is also steadfastly committed to the growth and development of its people, with more than 63,000 professionals receiving training via its Deloitte University curricula in the past fiscal year.
“By repeatedly forging new ground, Deloitte continues to stay ahead of the considerable disruption facing clients, our people, and the society in which we operate,” says Barry Salsberg, Deloitte Touche Tohmatsu Limited CEO.
“Member firms remain sharply focused on their unique ability to address the specific needs of their clients through distinctive breadth of skills, deep industry knowledge and strategic investments, while bolstering trust in the marketplace, hiring and developing the best talent, and delivering value to society.”
Facing disruption from many directions—digital transformation, geopolitical change and economic volatility, as well as the need to analyse big data, address cyber risk, navigate new regulations, and manage crises—clients look to Deloitte for innovative solutions. As such, Deloitte will continue to invest heavily in innovation, with an emphasis on driving differentiation in its core businesses. This includes investment in technology, advanced analytics, new business models and sector-specific solutions, as well as people, globally, to provide top-of-the-line services.
One such example is Deloitte’s commitment to audit quality and innovation. The audit plays a critical role in building trust in public and capital markets and is a cornerstone of Deloitte’s work. Deloitte’s quality focused and innovative audit service provides a comprehensive suite of capabilities that deliver deeper insights and value, including state-of-the-art technologies, most notably advanced data analytics and enhanced auditor’s reporting.
“As leaders in our profession, Deloitte engages with regulators worldwide to promote necessary reforms and improve quality for all stakeholders. Deloitte is one of the world’s most trusted providers of audit services and our network will continue to focus on delivering a uniquely high-quality experience in this important responsibility to business, capital markets and society,” added Salsberg.
Deloitte continues to be recognised by national and global clients, analysts, and other stakeholders as global leaders in professional services across the most diverse set of capabilities.
This past year Deloitte member firms have received a record number of accolades and have been recognised in established and emerging services, such as Analytics, Digital and Data Transformation, Cyber Security, Finance Transformation, Human Capital, Risk, Strategy & Operations, Sustainability, Tax, and Technology and in industries such as Financial Services, Life Sciences and Health Care, and Public Sector, among others.
Global growth:
* Americas member firms led regional growth with an aggregate 7,5% in local currency; the strongest growth occurred in Spanish-speaking Latin America or LATCO (14,1%) and Brazil (10,6%). The United States, the largest member firm in the network, produced particularly strong growth, led by an 11,3% increase in Consulting.
* Europe, Middle East, and Africa (EMEA) member firms grew by an aggregate 5,8% in local currency. In particular, Italy (11,5%), Germany (11,8%) and France (10,5%) demonstrated strong performance over FY13. Aggregate revenues for the sub region of Africa grew by an impressive 17,6%.
* Asia Pacific member firms experienced combined growth of 4,9% in local currency, up from 3,1% in FY13. Japan was a key contributor to regional results at 5,1% growth, and India and New Zealand both grew in the double digits.
* Deloitte continues to invest in emerging and growth markets around the globe. These strategic markets grew an aggregated 10,9% in FY14.
Growth across All Global Businesses
* Consulting, the largest business in the network, also showed the strongest growth globally in FY14, at 10,3% in local currency, driven by impressive performance in Strategy & Operations (10,5% growth), Technology (10,3% growth), and Human Capital (9,6% growth) service lines. The business experienced growth across all industries, led by a 26% increase in Life Sciences & Health Care revenues and double-digit growth in Energy & Resources, Public Sector, and Technology Media & Telecommunications.
* Audit grew an aggregate 2,5% in local currency, up from 1,9% in FY13. Most industries reported positive growth for Audit, most notably Financial Services, Consumer Business, Technology, Media & Telecommunications, and Energy and Resources. The Financial Services industry makes up 30% of the network’s Audit revenue globally.
* Enterprise Risk Services grew across the network by a strong 4,2% in local currency. In FY15, there will be a particular focus on further developing growth areas including controls transformation and assurance, cyber risk services and governance, regulatory, and risk services.
* Financial Advisory grew by a total of 6,8% in local currency, led by increased demand for M&A services arising from strong growth in global M&A activity and expanding Deloitte’s global capabilities, and growth in the organisation’s Crisis business driven particularly by increased regulatory focus in the FSI industry.
* Tax & Legal grew 7,7% in local currency, with strong growth across all regions highlighted by exceptional growth in Global Employer Services, Tax Management Consulting, Global Business Tax Services, Indirect Tax, and Outsourcing Services. Growing client needs stemming from continued globalisation, business model changes, technology advances, and regulatory activity are expected to drive increased opportunities in FY15.
* Industries: Life Sciences & Health Care led growth among industries posting 17,4% total growth in local currency, a significant increase from FY13 growth of 12,9%, followed by Public Sector, which grew by 11,9%. Additionally, Technology, Media & Telecommunications grew by an aggregate 9,1%, and Financial Services also posted strong growth at 5,9%.
