Deloitte Announces Record Revenues of $34.2 billion
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 organization’s aggregate revenues represent growth of 6.5 percent in local currency, or 5.7 percent in U.S. dollars.
Growth was led by Consulting, which experienced double-digit growth (10.3 percent in local currency), followed by Tax & Legal (7.7 percent). Financial Advisory and Enterprise Risk Services also experienced strong growth with 6.8 percent and 4.2 percent, respectively. Audit experienced growth of 2.5 percent, 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 globalization 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,” said Barry Salzberg, 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.”
“Despite the political and economic volatility that has prevailed across the region for most of 2014, our CIS business experienced revenue growth of 7 percent in local currency in the year ending May 2014” said Deloitte CIS CEO David Owen. “Consistent with the rest of the world most growth has come from our advisory business that spans tax & legal, consulting and financial advisory where we have a balanced client portfolio across the major sectors.
Plans to achieve revenue growth in the new financial year recognise the increasingly complex regulatory and economic environment that exists. At the same time, our plans are healthily ambitious, with close to double-digit growth in local currencies, as we set out to continue to deliver high quality services that are relevant to our clients’ needs”.
24 September 2014
Facing disruption from many directions—digital transformation, geopolitical change and economic volatility, as well as the need to analyze 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 Salzberg.
Deloitte continues to be recognized 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 recognized 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 & Health Care, and Public Sector, among others.
Global Industry Leadership
- Americas member firms led regional growth with an aggregate 7.5 percent in local currency; the strongest growth occurred in Spanish-speaking Latin America or LATCO (14.1 percent) and Brazil (10.6 percent). The United States, the largest member firm in the network, produced particularly strong growth, led by an 11.3 percent increase in Consulting.
- Europe, Middle East, and Africa (EMEA) member firms grew by an aggregate 5.8 percent in local currency. In particular, Italy (11.5 percent), Germany (11.8 percent) and France (10.5 percent) demonstrated strong performance over FY13. Aggregate revenues for the sub region of Africa grew by an impressive 17.6 percent.
- Asia Pacific member firms experienced combined growth of 4.9 percent in local currency, up from 3.1 percent in FY13. Japan was a key contributor to regional results at 5.1 percent 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 percent in FY14.
- Consulting, the largest business in the network, also showed the strongest growth globally in FY14, at 10.3 percent in local currency, driven by impressive performance in Strategy & Operations (10.5 percent growth), Technology (10.3 percent growth), and Human Capital (9.6 percent growth) service lines. The business experienced growth across all industries, led by a 26 percent 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 percent in local currency, up from 1.9 percent in FY13. Most industries reported positive growth for Audit, most notably Financial Services; Consumer Business; Technology, Media & Telecommunications; and Energy & Resources. The Financial Services industry makes up 30 percent of the network’s Audit revenue globally.
- Enterprise Risk Services grew across the network by a strong 4.2 percent 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 percent 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 organization’s Crisis business driven particularly by increased regulatory focus in the FSI industry.
- Tax & Legal grew 7.7 percent 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 globalization, 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 percent total growth in local currency, a significant increase from FY13 growth of 12.9 percent, followed by Public Sector, which grew by 11.9 percent. Additionally, Technology, Media & Telecommunications grew by an aggregate 9.1 percent, and Financial Services also posted strong growth at 5.9 percent.
Growth Across All Global Businesses
As Deloitte’s businesses have grown around the world, the network has continued to recruit and develop the next generation of global and member firm leaders, training them to anticipate and tackle clients’ most complex domestic and international challenges. In FY14, Deloitte member firms hired 54,000 professionals across the globe, growing its workforce by 3.7 percent to 210,400. During this time, 63,000 Deloitte professionals—from 81 countries across all regions—have attended leader-led programs at the three Deloitte University facilities in the United States (DU), Europe (DU EMEA), and India (DU India in Hyderabad).
“Deloitte professionals deliver outstanding value to clients and give back to the communities they live in, and we’re committed to investing in their development as leaders. That is why we continue to expand the deployment of the Deloitte University curriculum around the globe,” noted Salzberg. “These investments help to enrich careers, generate thought leadership, and ultimately deliver the services and solutions clients value most.”
As the world faces new economic and social challenges, the Deloitte network is forging new ground, linking business objectives to social, humanitarian, and environmental advances. With an aggregate investment in 2014 of nearly US $190 million in societal impact initiatives and over 940,000 volunteer and pro bono hours in communities around the world, the organization is committed to deepening and strengthening relationships that advance progress on society’s biggest challenges. Deloitte has teamed with Social Progress Imperative—a non-profit entity committed to improving the lives of people around world—and launched the Humanitarian Innovation Program to provide innovative scalable solutions to improve the humanitarian sector’s readiness to respond to crises.
“In the last few years it’s become clear that the only way we can truly address the major challenges facing society is through collective action. Deloitte recognizes our responsibility—and ultimately the benefit—to develop relationships with governments, non-governmental organizations, and other businesses to tackle these issues,” continued Salzberg. “The expectation that businesses should take a leadership role in addressing the challenges facing society will continue to grow, and I’m proud that Deloitte is at the forefront of this movement.”
To view this release online, please visit www.deloitte.com/2014globalrevenue.
The Bigger Picture: Delivering Social Value
- Growing demand for services produces fifth consecutive year of aggregate member firm growth, at 6.5 percent in local currency for FY14
- Demand for consulting was particularly strong with growth at 10.3 percent
- Strong growth was also experienced by Tax & Legal (7.7 percent), Financial Advisory (6.8 percent), and Enterprise Risk Services (4.2 percent)
- Consistent with the Deloitte network’s commitment to delivering value to its broader communities, the network invests nearly $190 million in communities around the world to address social and humanitarian challenges