Deloitte reports 7% hike in global revenue to $38.8bn
Number one accounting network Deloitte has reported record revenues of $38.8bn (£28.8bn) for the fiscal year ended 31 May 2017, marking the eighth consecutive year of growth and a 7.1% revenue increase in local currency terms
15 Sep 2017
Deloitte remains the number one global accounting network, with revenue up year on year from $36.8bn, reflecting steady growth in earnings over the last three years (up from $36.2bn in 2014).
Each of the five business areas showed growth, led by risk advisory, with a 12.9% uplift. Consulting was up 10.2%, tax and legal by 6.6%, and financial advisory by 5.8 %, while revenues in audit and assurance increased by just 1%.
Deloitte identified technology, media and telecommunications and consumer and industrial products as two strong areas of growth, both seeing revenues up by over 9%.
Tax and legal revenue grew at 6.6%, driven by global changes to tax rules as a result of the OECD’s Base Erosion and Profit Shifting effort (BEPS), which has led to a clampdown on multinationals’ use of aggressive tax planning.
Technology and automation has also created opportunities for tax revenue growth at the firm, which has introduced several global technology tools such as TP Digital DoX, Value Chain Analysis Tool (VCAT), and myInsight.
One of the largest growth areas was consulting with revenue at the global accounting network up 10.2%, with business disruption and transformation driving revenues as businesses look for specialist consulting services. This has seen Deloitte invest in a number of strategic alliances to develop its expertise and reach across artificial intelligence, robotics, cognitive, creative digital consulting, cloud computing, blockchain and Internet of Things (IoT).
Punit Renjen, Deloitte Global CEO, said: ‘Deloitte’s revenue growth is attributable to two factors. First, our multi-disciplinary business model continues to be a source of competitive strength.
‘Second, clients have choices and they are increasingly choosing Deloitte to help them navigate change and reinvent themselves in a constantly evolving global business environment.’
Renjen highlighted a number alliances Deloitte has forged with digital innovators including Amazon Web Services, Facebook, HP, Oracle, and SAP, and said the firm is making strategic investments in integrating transformational technologies and data analytics into its solutions and products across its businesses.
In FY2017, Deloitte increased its workforce in all geographic regions and businesses, with nearly 70,000 new professionals, an increase of 8% percent from FY2016.
Headcount growth was led by Asia Pacific among the regions at 10.4%, and by consulting and risk advisory among the businesses, each with growth over 13%.
Delopitte is ranked number one in the Accountancy Top 25 Networks Survey.
Report by Pat Sweet, Sara White