Asian revenues zoomed 17.4% from 2010 to 2011 to reach record revenues of $17.1 billion.
New York, NY (PRWEB) January 26, 2012
Big4.com's recent insightful analysis of the distribution of revenues across the three key geographic regions for the Big Four accounting firms shows variation both in terms of structure and growth from 2004 to 2011. This analysis critically examines the reported revenues on a global and regional basis to determine annual growth rates and contributions to worldwide member firm revenues on a common basis across the firms.
The distribution of revenues by geography shows some very interesting insights. Contrary perhaps to common belief, Europe (including generally Europe, Middle East and Africa), rather than the Americas region (including Canada, the US and South America), has the highest percentage of total revenues for the Big Four firms, averaging 43% of total worldwide revenues. Americas average about 40% and the Asia Pacific countries (including India, South Asia, China, North Asia and Australia) have the remaining 17% of the revenue share.
Asia Pacific, while being the smallest region, has posted the highest growth rates of all regions. This diverse region comprises a few mature markets such as Japan and Australia, but mainly covers fast growth emerging markets such as China, India, Vietnam, Korea and Singapore. The Asia Pacific region has been in an economic boom for most of this decade, and their demand for Big Four firm professional services have multiplied. All the firms have grown at exceedingly high rates each year since 2004, with the result that combined revenues have more than doubled from $7 billion in 2004 to $17 billion in 2011.
Overall, the region’s revenues increased 17.4% from 2010 to 2011, with Ernst & Young up 16.6%, KPMG up 16.6%, Deloitte rising 16.7% and PwC posting spectacular results of a 20.7% rise in revenue from 2010 to 2011. Asia’s differentially higher growth has led to a gain of share from America and Europe.
Asia represents about 17% of global revenues for all the firms, and as we see across the years, this total percentage has increased steadily from 2004 to 2011. In 2004, less than 12% of combined firm revenues were reported from Asia, and in 2011, it had sharply increased to 16.5% of total firm revenues. This share gain came at the expense of the Americas region, and now more recently, Europe, which correspondingly lost its share of the pie. All firms reported strong growth from this region – Deloitte’s Asia Pacific revenues grew 9%, making it the fastest-growing region for the sixth consecutive year.
Deloitte China grew 8.3%, and Deloitte India and Deloitte Australia both grew excess of 25%. Ernst & Young Asia-Pacific Area revenues grew 10%, while Japan fell 0.3%. E&Y India and China grew 22% and 18% respectively. Asia Pacific was KPMG’s strongest performing region, with India growing at 25%. For PwC, revenues rose 14% in Asia and 38% in Australasia.
This analysis may be reproduced or distributed in parts or whole, but prominent and full attribution should be given at all times to “The 2011 Big Four Firms Performance Analysis by Big4.com.”
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