Deloitte announces revenue results of US$31.3 b

• Network hired 51,000 professionals; aggregate workforce surpassed 193,000 and is expected to grow to 250,000 by FY2015
• Aggregate Deloitte revenues grew 8.6 per cent in US dollars, marking its highest revenue growth within the last four years
• Growth experienced across all industries, business lines, and regions, including Europe, despite a volatile economic environment

Deloitte Touche Tohmatsu Limited (DTTL) recently nnounced aggregate member firm revenues of US$31.3 billion for the fiscal year ending 31 May 2012, marking the network’s highest revenue ever. Aggregate revenues grew 8.6 per cent in US dollars and 8.3 per cent in local currency—the strongest revenue increase since 2008. Deloitte member firms experienced growth across all three major geographic regions, led by exceptional results generated in Asia Pacific, the Americas, and a number of developing markets, as well as across all business lines and industry sectors.

“Complexity, disruption, and speed of change are the new reality for our member firm clients, and for Deloitte’s own business,” said DTTL Global CEO Barry Salzberg. “Deloitte’s success this past year is the result of adapting business strategies to anticipate client needs and address the changing requirements of a dynamic market.”   

Deloitte continued to focus on hiring, developing, and retaining top talent as a key driver of the expansion of business activity. In FY2012, the Network hired 51,400 professionals; its total workforce now exceeds 193,000 professionals worldwide and the organisation is well on its way to achieving its growth goal of 250,000 professionals by FY2015.

In addition to the continued focus on hiring, and to support strategies to be recognised as one of the top organisations in the world for developing world-class leaders, Deloitte is investing heavily in leadership development globally. This commitment can be seen in Deloitte University, a US$300 million learning and development facility located outside of Dallas, Texas, where Deloitte professionals come together to connect, share ideas, and identify and capitalise on new and innovative solutions to the most critical and complex issues facing global business today. More than 40,000 professionals from 70 countries attended Deloitte University over the last year.

“Deloitte has always been highly effective at attracting and retaining the world’s best talent,” commented DTTLGlobal Managing Director, Clients, Services and Talent Roger Dassen. “Given continued market uncertainty, increased regulation, and a competitive job market, it is of utmost importance that Deloitte stay ahead of the curve and develop its professionals so they are well equipped to serve clients.”

The independent audit is crucial to protecting the investing public and capital markets. Deloitte takes pride in the auditor’s important role, and Deloitte member firms are investing in their audit practices to continuously enhance the quality of their audit work. Deloitte provides its people with extensive training and education on technical and regulatory matters, and on professional ethics and independence. The Network is constructively engaged with regulators and other stake holders worldwide, promoting reforms that will enhance audit quality.

Creating impact through Olympic and Paralympic relationships

In FY2012, Deloitte extended its commitment to the Olympic and Paralympic movements by providing strategic insight and professional services to national Games committees. Deloitte professionals delivered services across the network’s full competency suite, in areas including organisational design, risk assessment, and sustainability.

Deloitte UK was integral in delivering the momentous London 2012 Olympic and Paralympic Games. Eight hundred Deloitte UK professionals contributed 750,000 hours of expertise to help stage the Games, ranging from establishing a procurement function that oversaw the purchase of more than £700 million (approximately US$1.1 billion) in goods and services, to creating the program to test operational readiness of the world’s largest-ever peacetime event. Deloitte’s London 2012 client story is a true showcase for the combined talents and experience that Deloitte delivers to any business challenge.

Growth across business and industry

Deloitte serves as an advisor to businesses from various industries and sectors, providing assurance and restructuring services, helping them adopt new technologies, and positioning them for growth. In the past year, Deloitte served more than 75 per cent of the Global Fortune 500, working with them to address some of their most complex business issues.

In FY2012, Deloitte saw growth across all business lines and industries, with financial advisory and consulting experiencing 15 per cent and 13.5 per cent revenue growth, respectively.

Breakdown of business line and industry growth (aggregate across member firms, in USD):

• Tax and Legal revenue grew by 4 per cent. Growth was driven by the continued implementation of enhanced service delivery models in both compliance and reporting and advisory services, as well as by the introduction of new service offerings, especially in priority markets, to help clients manage the complex, fast-changing economic and tax environment. An uptick in cross-border consultative services and strong growth in the Asia Pacific region also propelled growth.
• Consulting revenue grew by 13.5 per cent. This growth was fuelled by helping clients with their most complex challenges, including responding to changes in the market, industry, and regulatory landscape, as well as supporting expansion into new and emerging markets. Demand for services in business intelligence, enterprise applications, finance transformation, M&A, and HR transformation were dominant growth drivers.
• Financial Advisory led the portfolio in terms of growth, at 15 per cent. This was propelled by several significant cross-border, cross-functional client engagements, and through acquisitions that broadened capabilities in priority markets.
• Audit and Enterprise Risk Services (ERS) revenue grew by 6 per cent. Audit grew most rapidly in the priority markets, especially in the Asia Pacific region, where Deloitte is well positioned to serve the fastest-growing sectors. ERS drove growth—double-digit growth in every region and industry—fuelled by factors including heightened regulatory pressure, positive analyst ratings, and increased awareness of the importance of optimised risk management practices.
• Industry: The fastest growing industry was energy and resources, with revenue growth of 24 per cent. Life sciences and health care grew by 13 per cent, consumer business and transportation by 11 per cent, and financial services by 10 per cent. Financial services generated more than one-fourth of the total industry revenue.

The growth across industry and business lines was achieved despite challenging market conditions around the world, particularly in Europe. Growth was largely driven by Deloitte’s ability to provide a consistent suite of tools across member firms, a cornerstone of its global strategy.

Geographic performance (aggregate across member firms, in USD):

• America’s revenues grew 7.9 per cent. The LATCO* member firm grew by 16.3 per cent. Deloitte United States grew by 9.1 per cent.
• Asia Pacific revenues grew 16.3 per cent, making it the fastest-growing region for the eighth consecutive year. Deloitte India grew by 19 per cent in local currency. Half of the member firms in the region, including Deloitte China, experienced double-digit growth.
• Europe, Middle East, and Africa revenues increased by 6.4 per cent. Member firms in Africa, Norway, Greece, and Luxembourg all experienced double-digit growth in local currency. Deloitte UK grew by 11 per cent in local currency.

“In a challenging economic environment, US$1.4 billion of Deloitte’s US$2.5 billion aggregate growth in the past year came from member firms in the three largest economies in the world,” said Salzberg. “I believe that is a testament to Deloitte’s ability to not only gain strength in high-growth strategic markets, but also continue to build momentum in established markets globally.”

Strategic investments for growth

•   Acquisitions: Deloitte successfully completed 30 strategic acquisitions during the past year in key markets and growth areas, including digital, analytics, financial advisory, and consulting, augmenting member firms’ capabilities to address the evolving needs of clients.
• Strategic Markets program: As part of the global approach to enhance member firms’ ability to seamlessly deliver world-class services across borders, the Network has committed US$750 million in investments in strategic markets over the next three years. The investment program aims to expand client service and industry capabilities, bolster the hiring and deployment of top talent, and cultivate innovative new services and multidisciplinary offerings.
• Deloitte Audit: Deloitte Audit is a US$300 million, multi-year global transformation that enhances audit service quality by focusing more effectively and efficiently on clients’ significant risks. It is being deployed in the 18 largest Deloitte member firms. Its evolved audit approach and enhanced technology and tools will cover approximately one-quarter of total member firm audit revenues by the end of FY2013.

“To create value and growth, Deloitte combines a great foundational strength together with client insight and customisation,” said Salzberg. “Innovation and opportunity will define the year ahead, for both Deloitte and member firm clients.”