PracticeAccounting FirmsDeloitte global revenues hit record $38.8bn

Deloitte global revenues hit record $38.8bn

Revenue growth can be attributed to the firm’s multi-disciplinary business model and client backing, says Deloitte's global CEO

Deloitte global revenues hit record $38.8bn

Deloitte has reported annual global revenues of $38.8bn, a record amount that signifies the eighth consecutive year of growth for the firm.

The figures relate the year ending 31 May 2017, and represent a 7.1% revenue increase in local currency terms.

The firm’s five business areas – audit and assurance, consulting, financial advisory, risk advisory, and tax and legal – all achieved growth, with technology, media and telecommunication, and consumer and industrial products the key industry growth drivers.

Risk and advisory netted 12.9% growth, supported by acquisitions in cyber, and innovative solutions regarding robotic process automation, risk sensing and predictive analytics. Capitalising on the client need to transform business models in the face of disruption, consulting grew by 10.2% with investment in artificial intelligence, robotics, blockchain and Internet of Things. Tax and legal registered 6.6% growth, with the OECD’s BEPS project and mass globalisation contributing to the results. Financial advisory grew by 5.8% with increasing demand for its M&A services, and audit and assurance grew by 1% with Deloitte member firms topping the Fortune Global 500 in audit wins for financial year 2017.

Deloitte’s CEO Punit Renjen said that the growth was attributable to two key factors: the firm’s multi-disciplinary business model; and clients choosing Deloitte to support their business plans and ambitions.

Technology key to strategy

Deloitte highlighted technology as being integral to its recent success and future growth strategy. The firm has invested in solutions and products in the past year to deliver greater value to clients, including its audit delivery platform Magnia, analytics platform Illumnia and innovative audit portal Cognia. The firm has also developed a worldwide network of cyber intelligence centres to enhance security and protect client business assets.

People investment

The firm reported an increase in its workforce across “all geographic regions and businesses”, resulting in 70,000 new employees – an 8% increase compared to financial year 2016. Asia Pacific saw the largest people growth at 10.4%.

To support its workforce and encourage career development, Deloitte has launched two new Deloitte University locations in Toronto and Singapore, expanded family leave policies, including Deloitte UK’s shared parental leave initiative, and fostered a “culture of inclusion” to promote workforce diversity.

Renjen said: “Deloitte professionals represent the workforce of the future: top talent with different life experiences, viewpoints and skill sets.

“In creating an inclusive, collaborative, purpose-led culture, we inspire our people to make an impact that matters for each other, our highly diverse and sophisticated client base, and society.”

“Deloitte continually builds on our capacity to deliver the depth and breadth of expertise, insight and quality our clients demand and deserve. As a result, Deloitte is a recognized leader in helping clients adapt and thrive in an intensely competitive global economy.”

Last week, Q3 all-market auditor rankings from Adviser Rankings revealed that Delotte has recently taken on nine new FTSE 250 audits, surpassing PwC to take the top spot for most FTSE 250 clients with 68 clients. Last month, Deloitte UK reported 11% revenue growth, with consulting and risk advisory the two highest performing areas for growth.

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