KPMG, while being the smallest of Big Four firms, grew at the fastest pace from 2010 to 2011, narrowing the gap with Ernst & Young.
New York, NY (PRWEB) January 20, 2012
Big4.com, the premier social networking forum for professionals and alumni of Accenture, Andersen, BearingPoint, Capgemini, Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers PwC announced today the release of the 2011 Big Four Firms Financial Performance Analysis, providing a detailed financial and operating analysis of the performance of the four largest accounting firms in the world. The analysis shows the firms enjoyed outstanding revenue growth from 2010 to 2011 after a severe revenue decline in 2009, and stabilization in 2010, to solidify a rebound arising from the global economic slowdown. 2009 marked an abrupt reversal of five straight years of double-digit revenue growth.
KPMG reported 2011 combined revenues for the fiscal year ending 30 September 2011 of US$22.710 billion versus US$20.630 billion for the prior 2010 fiscal year. This was a 6.2% increase in local currency terms and a 10.1% increase in US dollars terms. KPMG noted that FY11 revenues overall reflected strong performance across all geographies and functional businesses worldwide. KPMG’s year end is a full 3 to 5 months behind other firms, so while its FY 2010 results reflected more months of economic recovery to offset its FY 2009 results which included more months of economic distress, this advantage seemed to have faded in FY 2011.
Ernst & Young took the third spot behind PwC and Deloitte at $22.880 billion, and KPMG maintained its position as the smallest of the Big Four firms at $22.710 billion, just $170 million behind, as the gap narrowed against E&Y. Again, interestingly KPMG had only 0.9% more growth in local currency terms than E&Y (6.2% for KPMG versus 5.3% for E&Y), however the foreign sources of where this growth was realized in terms of changes against the US dollar turned out to be favorable for KPMG in 2011. US currency growth for KPMG at 10.1% was 2.5% more than that for E&Y at 7.6%.
By service line, Audit FY 2011 revenues were $10.48 billion versus $9.91 billion in FY 2010, up 1.8% in local currency and also up 5.8% in US dollar terms. KPMG noted that audit revenues rebounded despite strong competition in the marketplace and a difficult business environment. Tax services revenues in 2011 were $4.69 billion versus $4.15 billion in 2010, a strong 8.5% increase in local currency terms and even stronger 13.0% increase in US dollar terms.
Advisory services revenues of $7.54 billion in 2011 were up versus $6.57 billion in 2010, by a large 11.2% in local currency terms and 14.8% in US dollars terms.
By geography, Americas Region had 2011 revenue of US$7.05 billion versus US$6.37 billion in 2010, up 9.3% in local currency terms and up 10.7% in US dollar terms. Bright spots included Brazil with 22% revenue growth, In Europe, Middle East and Africa, combined KPMG member firm 2011 revenues were $11.66 billion versus $10.83 billion in 2010, up 4.1% in local currency terms and 7.7% higher in US dollars terms. India was the fastest growing among the largest KPMG member firms in the EMA region at 25%.
In Asia Pacific, combined 2011 revenues of $4.00 billion increased 7.0% in local currency terms but grew a substantial 16.6% in US dollar terms against $3.43 billion in FY 2010.
Revenues in China were up 12.9% in local currency terms and Management Consulting grew 24% in local currency terms and 29% in US dollar terms to become a $2 billion business in just six years. KPMG also announced that its member firms expect to hire 75,000 campus graduates over the next three years, a 25% increase over historical targets.
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Disclaimer: Big4.com believes in these numbers, but does not guarantee their accuracy.
The full study can be downloaded as Adobe pdf at http://www.big4.com/analysis.
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